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Wealthy Americans' retirement attitudes shifting, reverse mortgages may see more adoption 2010-01-14 Even wealthy people aren't immune from the lingering effects of the global economic downturn and may require added cash from a reverse mortgage. In a recent report, Reuters cited a survey commissioned for Bank of America, the Merrill Lynch Affluent Insights Quarterly. The survey found that close to half of older, wealthy people cut energy costs in 2009 in a bid to save money; 43 percent of respondents said they were dialing back spending on personal luxuries. And 38 percent of people are more aware of their cash flow as a result of the recession. Of the survey respondents who were retired, 59 percent called rising healthcare costs a major concern; 53 percent of near-retirees agreed. Healthcare expenses were the biggest worry for retirees. The number-two concern was "ensuring that retirement assets will last through lifetime": 51 percent of retirees were stressing about the viability of their savings. With a majority of retired people worried about their savings lasting, some may turn to reverse mortgages as a way to tap their home equity. Reverse mortgages can provide cash for home repairs, healthcare costs or dream trips, but they're only available to people older than 62.  |
