A quarter of retirees are still paying off mortgage debt

A quarter of retirees are still paying off mortgage debt

Just over a quarter, or 26%, of self-declared retirees with investable assets still paying off a mortgagewhile a similar percentage, 25%, said they are trying to pay off their existing credit card debt.

That’s a contributing factor to nearly a third of retirees, 31%, expecting to be less secure in their post-working years than their parents or grandparents, according to a survey by Nationwide. The survey also discussed planning for passing wealth on to their heirs.

“For many people, the outlook on life after retirement has changed as retired investors continue to face economic stress,” said Mike Morrone, vice president of Nationwide Annuity Business Development, in a press release.

“Now is the time for advisors and financial professionals to connect with their clients and help them stay calm, alert and informed during these ongoing economic headwinds, ensuring that the plan they have in place continues to position them for a secure retirement,” Morrone said.

Overall, 22% of respondents were concerned about whether they would be able to pay all their monthly bills after deciding to stop working.

The survey, conducted by The Harris Poll for Nationwide from Jan. 8 to Jan. 22, collected responses from 518 advisors and financial professionals and 2,346 people over the age of 18 with investable assets of $10,000 or more. The findings regarding retirees came from the 564 retired investors who responded to the survey, a Nationwide spokesperson said.

Homeowners aged 62 and over saw their Home equity rises to $13.19 billion According to the National Reverse Mortgage Lenders Association, this increased by $328.5 billion in the first quarter.

Senior housing values ​​rose to a record $15.5 trillion during that period, but that was offset by a rise in debt from $10.2 billion to $2.35 trillion, the NRMLA/RiskSpan Reverse Mortgage Market Index reported.

But fewer seniors now appear to have access to a reverse mortgage, which could help their financial well-being. In June, the Federal Housing Administration approved 2,105 Home Equity Conversion Mortgage applications, down from 2,460 in May and 2,561 a year ago, according to Reverse Market Insight.

At the same time, 15% of respondents to a Fannie Mae survey published earlier this year said that would consider using the value of their home for additional funds during retirement, while another 43% said maybe. But 41% said they definitely would not use their home for income.