Are you aware that more than 60% of U.S. households are at an increased risk of not having the ability to have the funds for a comfortable retirement? You might be surprised that the reason for lower IRA returns is not due to the stock market crash from the late 2008 and early 2009 decline, but rather due to the slump in home-equity valuation.
According to the Center for Retirement Research (CRR), determined by the their National Retirement Risk Index examination, the proportion of the number of working Americans which are at risk of being unable to maintain their standard of living in retirement has been increasing.
Alicia Munnell, the CRR’s director, made a statement that “the impact of home equity on the percent of households ‘at risk’ is greater than that of the recent stock market crash. How baby boomers and future generations decide to use their home equity could determine how well many fare in retirement.”
Brad Davis, vice chairman of retirement income solutions for Nationwide Financial Services (NFS), stated that “consumers must be open to utilizing all of their assets” together with home equity “to face today’s retirement challenges.”
Davis also urged financial experts to obtain the education they need and work with companies which will assist them to provide counsel and recommend real assistance on ways their clientele can expand retirement income. It’s also important to start early retirement planning today – do not wait until tomorrow. The earlier you get started, the bigger retirement fund you will have when it comes time to retire.