Hidden Costs of Retirement & How to Plan for Them
The costs of retirement are on everyone's mind as they reach a certain age. The more you know about all the financial options available to you, the better off you are. Citizens Lending Group is dedicated to educating our customers in Pennsylvania, California, and Florida about the various banking products and tools, such as reverse mortgages, that may help them account for the costs of retirement that they were unable to plan for in their working years.
Contact us to find out more about reverse mortgage requirements and how you could live a better retirement by living off your home equity.
Top Hidden Costs of Retirement and How to Approach Them
- A Place to Live: Many seniors believe that as they approach retirement they will have lower living expenses because they will no longer be paying down their mortgage. However, it is often the case for retirees that they to need to find a new place to live because they cannot maintain the home they raised their family in, or because they need a home more suited to certain mobility needs. Housing can be one of the more shocking costs of retirement. One way to help with this is a reverse mortgage purchase. This is similar to a mortgage, but allows you to purchase a new home without acquiring new mortgage payments.
- Medical Bills: While not as unexpected as a new home, medical bills can be one of the very expensive costs of retirement. Most retirees assume they can plan for this one by having a line of credit or home equity available to pay these costs down on a fixed income. However, most credit lines closed if they go unutilized for years and it is impossible to plan when your next major medical event could happen. A reverse mortgage can be used to open a line of credit to help cover these costs without closing on you for lack of use.
- Grandchildren: Many seniors want to leave some part of their estate behind for their grandchildren. This can often come in the form of selling their home to leave a small inheritance or as a means to pay for college. However, one of the interesting costs of retirement is that these college funds could be needed before you are able to pass anything on. If you know all of your other bills are accounted for, a reverse mortgage could allow you to access the home equity you were planning to leave behind anyway and allow your grandchildren to make use of it while you are still around.
Contact Us for More Advice on How to Handle the Costs of Retirement
The costs of retirement should not prevent anyone from living a rich, full life and stopping work when they choose to. All it takes is some careful financial planning and advice. If you have questions about how to handle your costs of retirement, contact Citizens Lending Group today and learn more about reverse mortgage requirements and how this loan may be able to help you plan for hidden costs in retirement.