Retirement has become a frightening prospect for millions of Americans who haven’t made adequate financial preparation for it, yet face the likelihood of living much longer than any prior generation of retirees. The Center For Retirement Research at Boston College reports that more than half of all households will not be able to maintain their standard of living in retirement.
The HECM reverse mortgage is a partial solution to the crisis. It is partial because it is feasible only for homeowners who have significant equity in their homes on retirement. But that is a very sizeable chunk of the retirees who need help. This article focuses on three seniors whose problems differ in severity but each of the three is typical of millions of others.