Fontana, California – Working Americans in Fontana and across the nation are facing a significant challenge when it comes to saving enough for a comfortable retirement. According to a recent retirement survey conducted by Schroders, individuals aged 45 and older believe they will need a substantial $1.1 million in savings to retire comfortably. However, the survey reveals that the majority of respondents (59 percent) expect to fall short of that goal, with less than $500,000 saved.
To address this growing concern, many Americans are exploring alternative financial options such as reverse mortgages. A reverse mortgage allows homeowners aged 62 and older to tap into their home equity to receive funds that can be used to supplement retirement income. This option can be particularly appealing for residents in Fontana, California, who may have significant home equity due to rising property values in the area.
Schroders surveyed 2,000 U.S. investors nationwide to gain insights into retirement readiness, planning, and financial advice preferences among working Americans. The survey uncovered additional key findings, including:
- Only 24 percent of working Americans nearing retirement age (60-67 years old) believe they have saved enough money to retire comfortably.
- A significant majority of older workers (53 percent) expressed concern that financial stress would negatively impact their overall health.
- The most helpful retirement preparedness advice for older workers came from their financial advisor (30 percent), financial websites/publications (25 percent), and family members (24 percent).
Another report, the Retirement Savings Assessment by Fidelity Investments®, sheds further light on the retirement landscape in America. The assessment revealed that America’s Retirement Score, a measure of retirement savings progress, has declined to 78 from its all-time high of 83 in 2020. This means that the average American saver is projected to have 78 percent of the necessary income to cover expenses during retirement.
Fidelity’s Retirement Savings Assessment is based on comprehensive data from over 3,500 survey responses and utilizes their robust retirement planning platform used by customers every day.
Additional highlights from the survey include:
- 48 percent of working American households are likely to cover their essential expenses in retirement, based on their calculated Retirement Scores.
- A significant majority (82 percent) expressed concerns about the impact of inflation on their finances.
- Despite feeling a lack of control, the majority of households (85 percent) are taking remedial action, including cutting discretionary spending (52 percent) and essential expenses (19 percent).
- 71 percent of Baby Boomers expect to have at least a somewhat comfortable lifestyle during retirement.
Considering the challenges and concerns surrounding retirement readiness, residents in Fontana, California, should explore all available options to bridge the retirement funding gap. A reverse mortgage could be an attractive solution for those seeking to leverage their home equity and secure a more comfortable retirement. It’s crucial to consult with a financial advisor and conduct thorough research to determine if a reverse mortgage aligns with individual retirement goals and circumstances.
