One in three 65 -year-olds will live past age 90, according to the Social Security Administration. One in seven will live past age 95. And with that longevity comes more health-related expenses to cover during retirement.
Older Americans are paying massive out-of-pocket health costs, despite Medicare coverage. In fact, uncovered expenses will consume 52% of the average Social Security check by 2030. But figuring out how to afford medical care as a retiree doesn’t have to be stressful. If you’re a homeowner age 55 or older (in select states)*, there’s an option designed exclusively for you — a reverse mortgage loan.
Because medical costs are inevitable
A reverse mortgage is a strategic financial tool that can help fund your healthcare needs and more in retirement. Similar to a traditional home equity line of credit (HELOC), it
allows you to leverage the equity you’ve built up in your home. But unlike HELOC, you don’t have to pay it back. It has a flexible repayment feature where no principal and interest payments are required until the last surviving borrower passes away or moves out***.
As a borrower, you may access the funds as a lump sum, monthly payments or a line of credit to fall back on** . And you may use them at your own discretion to supplement your income, save for a rainy day, take a vacation or cover retirement healthcare costs, including:
- Services not covered by major medical insurance
- Prescription costs
- Medical and non-medical in-home care, such as a physical therapist or home health aide
- Adult day care
As always, before deciding on a reverse mortgage or another financial solution, speak with your financial advisor to help determine the best payment option for your long-term financial security.
The privilege of growing old comes with a price tag