Many Americans are not surprised to learn that seniors face a variety of financial challenges. Particularly after a pandemic, many out-of-work seniors are struggling to get reemployed in an increasingly competitive workforce. However, people are often surprised to learn the extent of the financial challenges seniors face. For example: Did you know that the average American senior 60 years or older has an average of $70,000 in debt? In addition to caring for dependents and managing mortgages, seniors face the following financial challenges:
Medical Bills and Increasing Healthcare Costs
With each passing year, healthcare costs continue to rise. From routine to long-term care, medical services are getting more expensive by the day. Seniors know this better than anyone, as Americans 65 years old and over spend almost $20,000 a year on healthcare. It is no wonder that seniors between the ages of 65-84 years old account for 26% of healthcare spending in the United States but only represent 12% of the population.
Low Savings for Retirement
The lack of retirement savings in this country is a significant cause of alarm, as half of the nation is at risk for not saving enough for retirement. Many employers still do not offer 401(k) plans to supplement other income sources such as Social Security. In some areas of the country, the cost of living makes it impossible for the average person to put away money for retirement.
Life Insurance Rates
One of the most significant expenses seniors face during retirement are life insurance premiums. As retirement funds dry up, many seniors struggle with paying high premiums and end up lapsing their policies. A possible solution to many seniors’ financial stressors is a life settlement where they can receive a lump sum payout for their policies and eliminate expensive insurance premiums without surrendering their policy. The money received from the life settlement can be used any way they need to.
The life settlement specialists at MRE Finance strive to provide financial freedom to countless seniors across the country. We are happy to go over your options for selling your life insurance policy. Find out if you qualify by calling us today!