Seniors Sell Homes Due To Recession Concerns: Survey

Mortgage News July 5, 2023

A recently published survey conducted by Retirement Living reveals that around one out of every eight baby boomers have taken steps to address the potential impact of an imminent recession. These individuals have chosen to sell their homes in an effort to capitalize on the current high property values before any economic downturn occurs. The survey specifically focused on seniors aged 59 and older in the United States.

Around 20% of the participants indicated that they solely depend on Social Security benefits to generate income during their retirement years. Meanwhile, a significant majority of approximately 70% expressed feelings of uncertainty regarding the adequacy of their retirement savings to sustain them throughout their remaining lifespan.

According to the findings, although the average retirement savings among the respondents amounted to slightly over $680,000, a significant majority expressed a preference for a higher amount of approximately $1.2 million in order to feel more financially secure.

Most respondents estimated their retirement savings to last around 13 years, despite concerns about financial longevity. In response to the potential recession, 47% said they were reducing spending, 30% planned to increase savings, and 26% expressed intentions to invest in safe assets or continue working full-time.

Approximately 20-25% of participants expressed their intentions to pursue various strategies such as seeking part-time employment, establishing an emergency fund, or diversifying their investments.

Although a significant majority of respondents acknowledged insufficient savings, only a small portion of the overall participant group considered utilizing home equity as a means to finance their retirement, as revealed by the findings.

The survey involved 758 individuals aged 59 and above. Among the respondents, 277 were retired, 445 identified as female, and 309 identified as male. Two individuals identified as nonbinary, while two chose not to disclose their gender information.

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