Reverse Mortgage Jan-Feb 2021

Europe, Asia and Australia that was conducted in 2020 at the early stages of the pandemic. “Retirement systems around the world are under- going severe strain due to increases in longevity, popu- lation aging, globalization, and evolving employment trends,” says Catherine Collinson, CEO and president of Transamerica Institute® and TCRS. “The coronavirus pan- demic and economic downturn are intensifying existing risks to retirement security—and creating an even greater urgency for a new social contract among governments, employers, individuals and other stakeholders.” Four Key Ingredients to Succeed In New Retirement Age Research published by Edward Jones and consulting firm Age Wave finds that older Americans are living in a new retirement age that allows them to be more active, engaged, exploratory and purposeful compared to their parents and grandparents. The research—based on a survey of 9,000 Americans and Canadians across five generations—identifies four key ingredients, or pillars, to living well in retirement: health, family, purpose and finances. In a video interview with Retirement Daily Editor Robert Powell, Age Wave CEO Ken Dychtwald says the majority of retirees now call retirement “a whole new chapter of life.” Here are some other highlights from the Age Wave/Edward Jones research: • Pillar 1: Health. Part of what’s new about retirement is a longer lifespan and more years in this life stage. Good health offers choices. Unfortunately, most adults spend ten years in poor health. The most feared condition in America is Alzheimer’s and other forms of dementia; • Pillar 2: Family. Family is the greatest source of sat- isfaction, support and purpose. On the one hand, adults 50 and older worry about becoming a burden on their families. On the other hand, they are willing Senior Housing Wealth Reaches Record $7.70 Trillion Homeowners 62 and older saw their housing wealth grow by 1.8 percent or $134 billion in the second quarter to a record $7.70 trillion from the first quarter of 2020, the National Reverse Mortgage Lenders Association reported in its quarterly release of the NRMLA/RiskSpan Reverse Mortgage Market Index (RMMI). The RMMI rose in the second quarter of 2020 to 276.64, another all-time high since the index was first pub- lished in 2000. The increase in senior homeowner’s wealth was mainly driven by an estimated 1.6 percent or $150 bil- lion increase in senior home values, offset by a 0.9 percent or $15.5 billion increase in senior-held mortgage debt. “The most recent Risk Retirement Index published by the Center for Retirement Research at Boston College finds that 55 percent of working age households in America are now at risk of being unable to maintain their pre-retirement standard of living, due largely to the COVID-19 pandemic,” says NRMLA President Steve Irwin. “The responsible use of home equity may be an option to help mitigate these poten- tial risks and help seniors stay financially secure.” How Employers Can Promote Retirement Security Workers globally and in the U.S. expect they will need on average 67 percent of their current income in retire- ment, yet relatively few believe they are on course to meet these needs (25 percent globally, 39 percent U.S.), accord- ing to research published by the Transamerica Center for Retirement Studies (TCRS). The report—The New Social Contract: Age-Friendly Employers—explores the evolving nature of employer-em- ployee relationships and examines the vital role of employ- ers in helping their employees achieve a financially secure retirement. The findings are based on the 9th annual global survey of 15 countries spanning the Americas, What’s News EVERYTHING NEW YOU NEED TO KNOW People are talking about ... 8 REVERSE MORTGAGE / JANUARY-FEBRUARY 2021