Tuesday, September 23, 2014

New publication: “Using Your House for Income in Retirement”

The Center for Retirement Research at Boston College has released a new consumer guide: “Using Your House for Income in Retirement,” by Steven Sass, Alicia H. Munnell, and Andrew Eschtruth

The booklet’s key points are:

  • Home equity is the largest store of wealth for retirees and, with reduced support from Social Security and pensions, many more will need it for retirement income.
  • The two ways to tap home equity are downsizing and a reverse mortgage.
  • Downsizing:
    • Adds to your savings, which boosts income from savings.
    • Frees up more income by reducing taxes, insurance, and upkeep.
  • A Reverse Mortgage:
    • Allows you to stay in your home.
    • Provides income through a line of credit, lump sum, or monthly payments.
A PDF of this booklet is available here.
Hard copies are available for purchase.

No comments: