“Older adults concerned about retirements, look to alternatives to pad portfolios: surveys,” by Kimberly Bonvissuto, McKnight’s Senior Living
“The top financial regret for Americans concerning COVID-19 is not having saved enough for emergencies (23%), followed by not having enough retirement savings (20%), too much debt (17%) and lack of income stability (14%). Only 7% cited living beyond their means as a top regret. Not enough retirement savings was the top regret for those aged more than 55 years. … Despite the number of seniors concerned about their futures, 89% said in April they were confident they had enough funds available to ride out the market downturn. When looking at ways to maintain lifestyle, almost 95% said they are not considering selling any of their assets to fund their retirement needs. Instead, they are looking at alternative funding sources; 13% stated in March that they would consider a reverse mortgage if it would allow their portfolio to recover. In April, that number grew to 19.5%.”
LTC Comment (from Stephen A. Moses, President, Center for Long-Term Care Reform):
These results reek of over-confidence engendered by government entitlement programs that may not be there in the end. There is no mention of catastrophic risk in these surveys nor of using insurance to prepare. Watch that reverse mortgage number skyrocket if people start doubting the dollar and the government’s ability to service its debt and unfunded liabilities. A perfect financial storm is brewing.