BC mortgage brokers are not all the same. As a BC mortgage broker and a writer, the author has a deep insight into the BC mortgage market. Check out his BC mortgage rates at his blog.
In a 2004 economic study prepared by the Urban Institute for AA (formerly the American Association of Retired Persons), author Barbara Butrica and Cori Uccello contend that Boomers will bring more wealth in real terms at retirement than will the two previous generations. Median household wealth at age 67 will grow from $448,00 among current retirees to $600,000 among Boomers. Income at retirement is consistent with trends in wealth at retirement, the study shows that Projected household income at age 67 will increase from $444,0 among current retirees to $65,000 among boomers. As with wealth there will be income disparities among older and younger Boomer. On retirement income is expected to decline between older a younger Boomers. Reverse mortgage is expected to be popular.
However, other researchers, including Larry Cohen, director of 1 Princeton, New Jersey-based Consumer Financial Decisions, wonders if Boomers, given their spending history, will ever get to the traditional retirement years with any real assets.
”As the cohort responsible for the explosion of credit use in the 1980’s and 1990s, Boomers are hardly likely to forgo immediate gratification their later years,” Cohen said. “The trend among seniors will only exacerbated when the Boomers enter retirement age. The convenience of credit card use with the occasional slip into revolving along with leveraging their assets for around the world tours or trips mean that the more responsible Boomers will have credit insurance cover their inevitable demise. The rest, who are not so wealthy that they simply can afford that type of lifestyle, may wind up bequeathing their debt as their legacy instead of the trillions that they inherited.”
Biggest lure to a reverse mortgage: Spend and borrow, spend and borrow. . . . Boomers, who will work into their 70s, will continue to do both.
The writer is a reverse mortgage broker with numerous reverse mortgage clients.