Two separate studies have proven that most Americans don’t wish to leave their homes post retirement. One of these surveys also reports that once a person starts getting older, he or she grows fond of the home and never wishes to leave it. Experts also shared that the knowledge of home equity of the retirees needs to be upgraded.
The Survey on Loving the Homes Post Retirement
The survey which states that Americans love their homes post retirement was entitled The American College’s Home Equity and Retirement Income Planning Survey. It revealed that about 83% of Americans who are nearing retirement don’t wish to leave their homes and relocate during post retirement.
The survey also exposed the fact that almost no homeowners have an intention of living in a rented home. The survey also showed that about 44% of Americans have thought of using the home equity in retirement but about 25% are comfortable in spending it on a regular basis.
The Second Survey
The second survey Merrill Lynch has exposed the reasons behind that mindset. The first reason that was shared by about 54% participants was that they had a deep emotional connection with their homes. The second reason was that the home was in close proximity to their family members or their friends. About 48% people said that their homes were near to their family and about 31% said that their homes were closer to their friends.
The Emotional and Financial Value
Before people are younger than 55 years of age, they think that the financial value of their homes is way important that the emotional value. But when they age they realize that the emotional value is much higher than the financial value. This was proven in the second survey in which about 63% of respondents who were older than 75 years of age admitted that the emotional value is far more important.
Need for Better Advice
Jamie Hopkins who serves as the co-director of The American College New York Life Center for Retirement Income Planning opines that the financial advisors should ensure that the clients get a better idea of financial products and home equity so that the retirees can stay in their homes post retirement. He also added that the customers and advisors should have a better knowledge about home equity and key things such as reverse mortgages. They should make it a part of the retirement income planning process.
