Retirement Planning Still a Challenge for Missouri Seniors
Economic improvement has been stronger for the upper class than middle class, leading to ongoing retirement planning struggles
After the economic crisis in 2008, many Americans were left with tremendous losses on a wide range of assets. This was particularly true with real estate, as home values plummeted nationwide. The last six years have seen a slow recovery, but as the stock market and overall economy rebound, housing prices have still lagged, meaning many middle class families still have not recovered full value on their largest asset. Unfortunately, this becomes a major issue for aging seniors looking to retire, especially those with mortgages dating before 2008. Average wealth for middle class workers in the 55 to 65 age bracket actually decreased between 2010 and 2013, and is considerably lower than it was in 2004. Meanwhile, median house prices are rising and mortgages may be based pre-2008 purchase prices, essentially meaning that many in this age group will need supplemental income in order to fully pay off their mortgages.
The recession may have hit those near retirement the hardest
While much of the attention of the post-crash economy was on unemployment and student debt among recent graduates, the recession may have actually been most difficult on those near retirement but not yet eligible for Medicare and Social Security benefits. Though unemployment rates are lower for those near retirement than for young Americans, older people who become unemployed have more difficulty finding jobs with an average unemployment length of more than a year. Some factors contributing to this include:
- Layoffs from struggling industries
- High salary history and demands
- Possible age discrimination
- Less mobility due to families and home ownership
This last point compounds the issue, as the anchor of an unpaid mortgage can further complicate retirement plans. In addition, not being eligible for Medicare benefits made health insurance a high cost for these unemployed individuals.
The recession may have hit those near retirement the hardest
This all amounts to a challenging situation for those seeking to retire in the coming years. While Social Security benefits help, there is a looming specter of cuts to social services. There are, however, options available for financial planning and cost savings to Missouri seniors. Your options may include
- Annuities
- Reverse Mortgages
- Health insurance alternatives such as Medicare Advantage
- Various forms of insurance that protect against major expense down the road
Senior Health Solutions professional help you determine if these options fit your long-term needs, so contact us today.
Contact Senior Health Solutions to speak with an agent about retirement savings strategies
For more information on options available and how we can help secure your retirement, speak with the team of skilled professionals at Senior Health Solutions today. Call (636) 244-4415 to make an appointment.
