REVERSE MORTGAGE INFORMATION
Retirees at Greater Risk from Inflation: Reverse Mortgages May Help
Social Security benefits continue to fall short year after year putting retirees at greater risk from
inflation, while a disproportionate percentage of their income is spent on soaring medical costs. A
record number of retirees are now turning to a reverse mortgage to supplement their income and
stop pinching pennies.
In 2008, 48 million Americans age 65 and over who depend on Social Security received a Cost of
Living Adjustment (COLA) increase of 2.3 percent or, on average, an extra $24 per month.
According to the Congressional Budget Office, Social Security benefits are forecast to increase
just 2.8 percent in 2009. Retail prices are up 4 percent last year with a 5.7 percent rise in food, 5.5 percent increase in home energy, and a 35 percent jump in gasoline.
Social Security is supposed to protect retirees, but according to a recent study by The Senior
Citizens League, retirees have lost 40 percent of their buying power since the beginning of the
decade. Each year since 2000, retirees have received an increase in their Social Security benefits lower than the rate of inflation. Social Security benefits have increased by just 22 percent, while retiree expenses have risen by 71 percent.
Not only are Social Security benefits rapidly falling behind inflation, a recent survey by the Kaiser
Family Foundation found those age 65 and older spend five times more on health care than
younger adults. Medical services have risen by 5.7 percent a year, hospital services by 8.5 percent, and home health-care and nursing-home fees by 4.5 percent.
Medicare Part B premiums have soared by more than 93 percent since 2001, leaving many retirees
to cover the rising cost of doctor’s visits, tests, and outpatient hospital care.
This squeeze on retirement income is putting many at risk of depleting their savings, delaying
necessary home repairs or medical treatments, or cutting back on food and prescriptions.
To offset lost income and provide greater financial security, a record number of retirees are taking
advantage of a government-insured reverse mortgage.
A reverse mortgage enables homeowners 62 and older to borrow against their home with no
repayment for as long as they live in their home. Credit and income are not used in qualifying for
the reverse mortgage, and closing costs are financed, so there is usually no money out of pocket.
Plus, a reverse mortgage does not affect Social Security or Medicare Benefits.
Reverse mortgages provide the flexibility to customize the way funds are received to best meet
individual needs. This includes a lump sum, a line of credit, monthly payments, or a combination
of two or more of these options. This makes it possible to supplement monthly retirement income
while using the line of credit for emergencies.
"Many of the retirees who contact us have a mortgage and high credit card payments that are
putting their home and future at risk.” [insert your name, title at company], said. "In many cases,
we are able to pay off their existing mortgage and other debts with a reverse mortgage. By
eliminating these monthly payments, our customers are free from the stress they have been living
with each month and are able to afford those things they have been putting off."
Advocacy groups for the elderly are lobbying to change the index used to determine adjustments
to Social Security benefits to the Consumer Price Index (CPI) for Elderly Consumers or CPI-E.
Two bills introduced in the current Congress (H.R. 1953 and H.R. 2032), if passed, could mean
tens of thousands more for retirement years.
To learn more about reverse mortgages visit nrmec.org
inflation, while a disproportionate percentage of their income is spent on soaring medical costs. A
record number of retirees are now turning to a reverse mortgage to supplement their income and
stop pinching pennies.
In 2008, 48 million Americans age 65 and over who depend on Social Security received a Cost of
Living Adjustment (COLA) increase of 2.3 percent or, on average, an extra $24 per month.
According to the Congressional Budget Office, Social Security benefits are forecast to increase
just 2.8 percent in 2009. Retail prices are up 4 percent last year with a 5.7 percent rise in food, 5.5 percent increase in home energy, and a 35 percent jump in gasoline.
Social Security is supposed to protect retirees, but according to a recent study by The Senior
Citizens League, retirees have lost 40 percent of their buying power since the beginning of the
decade. Each year since 2000, retirees have received an increase in their Social Security benefits lower than the rate of inflation. Social Security benefits have increased by just 22 percent, while retiree expenses have risen by 71 percent.
Not only are Social Security benefits rapidly falling behind inflation, a recent survey by the Kaiser
Family Foundation found those age 65 and older spend five times more on health care than
younger adults. Medical services have risen by 5.7 percent a year, hospital services by 8.5 percent, and home health-care and nursing-home fees by 4.5 percent.
Medicare Part B premiums have soared by more than 93 percent since 2001, leaving many retirees
to cover the rising cost of doctor’s visits, tests, and outpatient hospital care.
This squeeze on retirement income is putting many at risk of depleting their savings, delaying
necessary home repairs or medical treatments, or cutting back on food and prescriptions.
To offset lost income and provide greater financial security, a record number of retirees are taking
advantage of a government-insured reverse mortgage.
A reverse mortgage enables homeowners 62 and older to borrow against their home with no
repayment for as long as they live in their home. Credit and income are not used in qualifying for
the reverse mortgage, and closing costs are financed, so there is usually no money out of pocket.
Plus, a reverse mortgage does not affect Social Security or Medicare Benefits.
Reverse mortgages provide the flexibility to customize the way funds are received to best meet
individual needs. This includes a lump sum, a line of credit, monthly payments, or a combination
of two or more of these options. This makes it possible to supplement monthly retirement income
while using the line of credit for emergencies.
"Many of the retirees who contact us have a mortgage and high credit card payments that are
putting their home and future at risk.” [insert your name, title at company], said. "In many cases,
we are able to pay off their existing mortgage and other debts with a reverse mortgage. By
eliminating these monthly payments, our customers are free from the stress they have been living
with each month and are able to afford those things they have been putting off."
Advocacy groups for the elderly are lobbying to change the index used to determine adjustments
to Social Security benefits to the Consumer Price Index (CPI) for Elderly Consumers or CPI-E.
Two bills introduced in the current Congress (H.R. 1953 and H.R. 2032), if passed, could mean
tens of thousands more for retirement years.
To learn more about reverse mortgages visit nrmec.org