Fact Sheet: "The NRRI and the House"
Center for Retirement Research at Boston College, March, 2010
The National Retirement Risk Index (NRRI) measures the share of American
households ‘at risk’ of being unable to maintain their pre-retirement
standard of living in retirement. The Index is calculated by comparing
households’ projected replacement rates – retirement income as a percent
of pre-retirement income – with target rates that would allow them to
maintain their living standard. To make the estimates as conservative
as possible, the calculation assumes that households derive the maximum
possible income from the assets they hold at retirement. A crucial
component of that exercise is the highly unrealistic assumption that
they access their home equity through a reverse mortgage and invest the
proceeds in an inflation-indexed annuity – very few households actually
take reverse mortgages or buy annuities. This fact sheet looks at how
not taking full advantage of housing equity affects the share of U.S.
households ‘at risk.’...
Read this article.About Reverse Mortgages: One of the options discussed at length in this article is that of tapping the equity in one's home using a reverse mortgage. Consider the possibilities of this at NewRetirement.com
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