“Older Americans are feeling the effects of inflation, and their children worry that their parents won’t have enough money to live through their retirement years,” said AAG’s chief marketing officer. Martin Lenoir. “With the current economic environment, it’s no surprise that the majority of adult children are now supportive of their parents tapping into the equity in their homes. For many seniors, their home is their most valuable asset. valuable and maybe it’s time to start using it.”
The data shows Adult children worry financially for their aging parents:
- The majority of adult children fear that inflation will harm their parents’ situation. 62% of adult children say they are worried about the impact of inflation on their parents’ finances.
- Half of adult children think their parents will have to move into their house at some point. 50% of adult children say they expect their parents to move into their home in their later years.
- More than a third of adult children fear that their parents’ financial problems will fall on them. 35% of adult children say they fear that their parents will become a financial burden on them at some point.
- Nearly half of adult children are already worried about their parents’ financial situation. 43% of adult children say they are worried about their parents’ financial situation.
- Half of adult children don’t know how much debt their parents have accumulated. 50% of adult children said they don’t know how much debt their parents currently have.
- Most adult children believe that the equity in their parents’ home could be a financial solution. 60% of adult children said they were in favor of their parents using their home equity to fund their later years.
- More than three-quarters of parents have never talked to their children about using their home equity. 76% of adult children said they had never considered using their home equity to fund their retirement years.
To read the full results of the AAG Adult Child Survey, visit the link below:
As Americans look for ways to boost their cash flow, senior housing wealth has hit an all-time high at an all-time high 10 trillion dollars, according to the National Association of Reverse Mortgage Lenders. With a federally insured Home Equity Conversion Mortgage (HECM), more commonly known as a reverse mortgage, seniors age 62 and older can access the equity in their home, eliminate their monthly mortgage payments and stay in their home long term. Seniors who use a reverse mortgage to stay in their home long-term are required to continue to pay their taxes and insurance, maintain the home, and meet all of the terms of the loan.
The AAG’s survey of adult children was conducted on May 12, 2022, and included 1,510 participants. Responses include many formats, including yes and no answers, ranking preferences, and multiple-choice answers. The survey was conducted on a digital platform so that participants from all parts of the United States could respond from the safety of their homes. All participants were randomly selected, with age and parental ownership being the only qualifying factors.
AAG is dedicated to helping older Americans find new ways to fund a better retirement through the responsible use of their home equity. As the national leader in reverse mortgages, AAG offers a range of home equity solutions, including home equity conversion mortgages, traditional and proprietary mortgages, designed to provide seniors with better outcomes. financials in retirement. AAG is a proud member of the National Reverse Mortgage Lenders Association (NRMLA). To learn more about AAG and reverse mortgages, please visit the company’s website at www.aag.com.
American Advisors Group, NMLS ID: 9392, 18200 Von Karman Ave., Suite 300, Irvine, California 92612.
SOURCE American Advisory Group (AAG)