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Originally Posted by bizaro86
I'm confident that many/most boomers will find a way to spend it all. Reverse mortgages are becoming more popular for a reason.
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Becoming more popular, but still not close to being typical. I couldn’t find Canadian numbers, but only 2 per cent of seniors households in the U.S have a reverse mortgage. The people calculating the trillion dollar/year wealth transfer are taking things like seniors debt in and reverse mortgages into account.
While younger retirees can go through a lot of money with travel, new cars, etc., spending typically declines sharply as people move through their 70s. I’ve been in charge of my parents’ finances for a few years now, and expenses are low. Between CPP, OAS, a modest pension, and income from RIFFS, everything is more than covered. We’re actually having to stash my mom’s money in a TFSA, as at 80 her income exceeds her spending.
That’s not even getting into the increasingly common household type of middle-aged adults living with their aging parents and sharing expenses, which saves everyone money.