With 76 million baby boomers nearing the end of their working lives and aiming for retirement, the nation is headed for a retirement financial crisis. For years, financial experts have been warning about the looming retirement crisis, unfortunately, many retirees don’t seem to understand the magnitude of the situation.
An estimated one in five adults over the age of 65 skip prescription refills and doctor visits due to high out-of-pocket costs and 30 percent of retired homeowners carry a mortgage with a median of $79,000.
Retirees are struggling to find ways to provide for their necessary expenses and even though the markets may be improving, about 45 percent of baby boomers have not started a retirement fund of any kind.
For those facing this struggle, there are other options besides depending on Social Security and their retirement fund. Nearly half of U.S. households own life insurance policies with a combined value of $11.4 trillion. Sadly, a shocking 88 percent of those benefits lapse or are surrendered before a claim. In 1911, the U.S. Supreme court actually ruled that life insurance can be sold like any other asset, providing an additional option to income for retirees.
GWG Life, an industry leader in buying life insurance policies, created this infographic below that provides startling statistics on the financial situation many retirees will be facing in the near future. The infographic also explains how life settlement-transactions through which policyholders sell their life insurance for fair market value – can generate income to pay for long-term care, vacations, or other necessary expenses.