Nearly Half of Baby Boomers Don’t Have the Cash to Age in Place

posted by admin on 25.10.2019 in Press Release  | Tagged , , , , , , , , , , , , , , , , , , , , , , , , ,  | Leave a comment

Nearly 50 percent of baby boomers reported that they don’t have a sufficient amount of savings to age in place in their own homes. This is according to a joint survey conducted by website Next For Me and roommate matching service Silvernest.

The survey, which was conducted with Next for Me and Silvernest subscribers in the United States between the ages of 40 and 65, reported that 35 percent of respondents expressed the intention to stay in their home through their retirement years. 17 percent plan to downsize from their current residence into something smaller, while 15 percent said they plan on moving to another state.

While 50 percent of baby boomers want to age in place, the survey results say, financial factors are the biggest culprit in complicating the achievement of that goal.

“49% of our survey respondents say they don’t or ‘probably don’t’ have enough money saved to cover their mortgage or housing expenses in retirement,” the results read. “That doesn’t take into account not-so-extraordinary circumstances like later-in-life ‘Grey Divorce,’ which is likely to take a serious toll on both spouses’ financial health.”

Other aging-related concerns like loneliness, safety and accessibility have also factored into the increasingly warm attitude more seniors are taking to the idea of home sharing, the organizations say.

While 41 percent of survey respondents are actively planning on sharing their homes in the future, 30 percent say that they would actively consider renting out a room in their home after retirement while another 18 percent express that they “might” consider taking such a step.

“The 65+ population is growing daily, and more and more of them are putting off retirement, either by choice or out of financial necessity,” the results read. “This aging population will need accessible housing, and those who are financially unprepared will need to find new ways of reducing their housing costs.”

Silvernest is a roommate matching and home sharing company aimed primarily at baby boomers. Late last year, the company engaged into a partnership with Finance of America Reverse (FAR) which aims to jointly produce consumer events, digital and print publications, and optional discounted memberships to Silvernest’s matching services. FAR also offers all of its borrowers a year of Silvernest services for free, according to a company spokesperson.

“We see home sharing as both an alternative to a reverse mortgage and also a complement,” FAR President Kristen Sieffert told RMD at the time. “We’re also seeing people who are not our customers but who are participating in home sharing benefit from information about other ways they can leverage their home to get the most out of retirement.”

See the results of the survey at Next for Me.

Article by Chris Clow on reversemortgagedaily.com

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