In an ideal world, the retirement finance that you have been contributing to for years would have gained in size exponentially over the years. The politicians have instilled us with a sense of over-confidence in the economy, which in reality, has gone to plan until recent years. The sad reality today is one where pensioners have little left of their savings, through no fault of their own. The markets have crashed due to the overzealous selling and buying of credit and the responsibility, I’m ashamed to say, falls heavily on the shoulders of the young. It is the more senior members of society who are made to pay. Annuities from pensions are paying very little and interest rates are so low that savings can be difficult to keep in line with inflation.
Reverse mortgages have now been thrust into the limelight and must play an important role in the financing retirement for the masses. House prices have certainly taken a setback in terms of pricing, but nothing like the stock markets and many experts feel that prices are rising and for those who own their homes, typically seniors do, it can make great financial sense to tap into the many years worth of equity stake you have built in your home – especially since there are very few other options.