Yes there are Valid Reasons for Reverse Mortgage that Helps in Retirement Planning – Part I
Not just you, everyone have that picture in our mind, the day we stop working anymore and then spend the rest of the days of our lives in peace, travel as much as we want, walk in the sand holding the hands of the one we love and watch the sunset together. However, the reality is quite different from this fascinating tale. Alicia Munnel, director of Retirement Research believes that – “The idea that people can retire at 62 and walk around holding hands on the beach, it’s not realistic.”
The truth is –
People will realise that they have very few savings by the time they retire and they will be too old to work again to meet up their needs. This will leave them with very few options for improving their income.
The world is changing in a very rapid pace and the dip in birth rate will mean that lesser number of people will be paying taxes in future. On the other hand, increase in ageing population will mean that more number of people will be resorting to government aides for their support. People will not have sufficient money when they stop working and that’s the reason it has become important for us to fix as soon as possible. Being able to work as long as we can gives us a good leverage, consequently it will be difficult to find work in our 60’s and 70’s.
However, there are reasons to why reverse mortgage will help in retirement planning of modern-day Australians. Such as –
A Safer Alternative is Reverse Mortgage
Your home is your biggest asset of the lifetime and when it comes to do anything that involves your home, it’s quite normal to feel a bit hesitant. However, with the help of a trusted financial broker, you can have a good deal of loan whilst maintaining the security of home ownership.
The Flexibility in Reverse Mortgage
In simpler terms, reverse mortgage will allow you to borrow against the value of your property and the repayments can either be from a regular income source, a lump sum payment or a line of credit. The flexibility in reverse mortgage offers the advantage of using the combination of these options and this truly helps when you want to carefully plan how you are going to spend your reverse mortgage payments.
In the next part of the blog under the same title and the introduction, we will continue to know about the remaining reasons that makes reverse mortgage helpful in retirement planning.