4 Reasons Your Retirement
May Be Delayed
( 1st in a four part series )
Housing Market Decline
The spike in households unprepared for retirement is largely due to the housing bust. Almost three quarters of the increase in Americans at risk of being unable to maintain their current standard of living in retirement was the result of the decline in house prices, the Boston College study, underwritten by Nationwide Mutual Insurance Co., found. "Even though people lost a lot of money in stocks, stocks tend to be held by the top portion of the income distribution, whereas everyone owns a house," says Munnell. Even people who don't plan to sell their home in retirement are affected by lower housing values. If they need extra cash and opt for a reverse mortgage, they'll extract less equity. And many Americans who have not paid off their home will need to continue making mortgage payments after leaving the workforce
No comments:
Post a Comment