(NAPSI)—The Stanford Center on Longevity’s 2018 “Sightlines
Report” found that baby boomers have accumulated less household wealth
and carry more debt in comparison to previous generations of American
retirees.
The report found that overall household asset balances—and
retirement savings in particular—are lower for boomers than for the
elderly Americans born before them. In addition, baby boomers are carrying
more debt compared to older generations, with one in three holding a debt
burden exceeding 50 percent of their total wealth.
With approximately 10,000 Americans turning 65 each day, the news that
baby boomers are less ready to retire than those generations who have come
before them is disconcerting by itself, but it is especially worrisome in
light of rising retirement expenses they will face.
“Given that boomers will likely live longer and rack up higher
lifetime medical costs than prior generations, the inevitable conclusion is
that boomers will face some tough challenges during their retirement years,”
according to CBS MoneyWatch.
Financial planning experts offer a few possible retirement readiness fixes
to help baby boomers address a shortfall in available cash:
• Pay down debt—For
those boomers in the preretirement or early-retirement stage, do what you can
to reduce your debt load. Every penny not going to debt is a penny going
toward funding your retirement lifestyle.
• Consider returning to the
workforce—If you are physically able, think about options for
working a little later in your life or perhaps returning to the workforce in
a part-time job. A few years of additional income can make a huge difference
down the line.
• Adjust your standard of
living—Be prepared to make some modifications to your lifestyle in
order to reduce your monthly expense budget. You may be surprised how much
minor purchases, such as a daily gourmet coffee, can add up to on an annual
basis.
• Be smart about your
available resources—Can you afford to defer Social Security for a
bit longer in order to maximize the cash benefit? Do you own a home that has
equity you can put to work for you with a reverse mortgage? Are there other
financial resources you can draw down, such as an old savings account or a
life insurance policy you may have socked away?
“Many seniors are surprised to learn that one potential asset for
generating immediate cash is a life insurance policy,” said Darwin M.
Bayston, CFA, president and chief executive officer of the Life Insurance
Settlement Association (LISA), a nonprofit organization that educates seniors
about alternatives to lapsing or surrendering a life insurance policy. “A
life insurance policy is considered your personal property and—as such—you
have the right to sell that policy anytime you like.”
When a consumer sells a policy in a “life settlement”
transaction, the policy owner receives a cash payment and the purchaser of
the policy assumes all future premium payments—then receives the death
benefit upon the death of the insured. Candidates for life settlements are typically
aged 70 years or older, with a life insurance policy that has a death benefit
of at least $100,000.
To learn more about life settlements and whether you could be eligible for
a free review of your life insurance policy, visit www.LISA.org or call the LISA office at
888-902-6639.
““Many seniors are
surprised to learn that one potential asset for generating immediate cash is
a life insurance policy,” said Darwin M. Bayston, CFA, of the nonprofit
Life Insurance Settlement Association (LISA). http://bit.ly/2CBPV6T”
On the Net:North American Precis Syndicate, Inc.(NAPSI)