Because women’s life expectancy is on average longer than that of their male counterparts, women aged 75-84 are 37 percent more likely to be living alone than men of the same age. Thus, widowhood adds to the financial hardships of retired women, as it brings a decrease in both income support and social security.
Despite these difficulties, a longer retirement does not have to mean a lower quality of lifestyle. A reverse mortgage might be a wise investment especially for retired women. The reverse mortgage enables homeowners 62 and older to borrow against their home with no repayment for as long as they live in their home. It does not affect social security or Medicare benefits, and credit and income are not used in qualifying.
Reverse mortgages are a non-recourse loan which means that the lender can only look to the sale of the home for repayment when the homeowner dies or moves, and not to other assets or the income or assets from family members.
For more information, call the Women’s Institute For A Secure Retirement at (202) 393-5452 or visit www.wiserwomen.org
Originally published in the Santa Monica Daily Press print edition on July 11, 2007. Read the original PDF.