Among retirees who identify themselves as having investable assets, just over a quarter (26%) are still paying off a mortgage, and a similar proportion (25%) said they are working to pay off existing credit card debt.
That's partly why nearly a third of retirees, 31 percent, expect their retirement years to be less stable than those of their parents and grandparents, according to a Nationwide survey that also discussed how people plan to pass on their wealth to their heirs.
“As financial stress continues to weigh heavily on retired investors, the idea of retirement is changing for many,” Mike Morrone, vice president of business development for Nationwide Annuities, said in a press release.
“Now is the time for advisors and financial professionals to reach out to their clients to help them stay calm, agile and informed in the face of ongoing economic headwinds and ensure the plans they have in place continue to provide the foundation for a secure retirement,” Morrone continued.
Overall, 22% of survey respondents were worried about whether they would be able to pay all of their monthly bills after deciding to quit their job.
The survey, conducted by Harris Poll on behalf of Nationwide from Jan. 8 to Jan. 22, included responses from 518 advisors and financial professionals and 2,346 people ages 18 and older with at least $10,000 in investable assets. A Nationwide spokesperson said the retiree findings were drawn from 564 retirement investors who participated in the survey.
Homeowners age 62 and older saw their home equity grow by $328.5 billion in the first quarter, to $13.19 billion, according to the National Association of Reverse Mortgage Lenders.
According to the NRMLA/RiskSpan Reverse Mortgage Market Index, the value of senior housing rose to a record $15.5 trillion during the same period, but that was offset by an increase in debt of $10.2 billion to $2.35 trillion.
But now, fewer seniors appear to be taking out reverse mortgages, which can help seniors gain financial stability. In June, the Federal Housing Administration approved 2,105 home equity conversion mortgage applications, down from 2,460 in May and 2,561 a year ago, according to Reverse Market Insights.
Meanwhile, a Fannie Mae survey released earlier this year found that 15% of respondents would consider using the equity in their home to save up extra money in retirement, and 43% said they might, but 41% said they would never use their home as a source of income.