Are you not afraid of the fact that there can be up to 25 million people who will live in poverty by 2050 in America? Unfortunately, many people will have serious financial problems. The poverty level in the US is on the record. Regular observations of the poverty state in the United States from year to year make it possible to trace this important social and economic dynamics over the past several decades. There is quite a bad situation with real estate. After all, it is the most important component of the national wealth of all countries around the world. No matter how high the level of industrial or intellectual development of the country is, the land is a significant part of national wealth. The cost of houses owned by older people is growing faster than mortgage debt. In the fall of 2013, the elderly had 6.28 trillion dollars of real estate, and the total debt for mortgage loans was 1.43 trillion dollars. Two years later, houses went up by 15%, but the mortgage debt was only 2%.
However, this is a good new for those involved in reverse mortgage loans. It is intended for elderly citizens, when a life loan is issued on the security of residential property. It is very important that the citizens’ property rights to their housing are preserved with such lending. Bankers try to take advantage of the maximum benefit from this progress. However, sometimes a reverse mortgage can be an indicator that a person is confidently striding towards poverty. Accumulated assets can be transferred to the bank with the financial inability to make all the necessary monthly payments. Moreover, when drawing up a reverse mortgage, it is necessary to make an appraisal of housing, pay insurance and various commissions. All this is done at the expense of a potential borrower, which leads to an increase in interest.
By the way, things are not going well – there are predictions that older people may not even have their own capital in the future, observing serious problems with money. Not all elderly people manage to keep even a roof over their heads.
There will be more elderly Americans than ever in the near future. 72 million Americans will be 65 for the next 20 years, 8,000 a day. Many of them will turn 80 or more for many decades after that. This causes real concern, because the old age will only mean poverty in the future.
To date, half of American households do not even have to rely on a rich old age. In 2010, the age of 46.6 million Americans was more than 65 years old. Considering the fact getting security and basic material needs becomes more difficult, about 8.9 million have simply become beggars. Given the current rate of population growth and the lack of promised improvements in the quality of life, the number of older people will increase from 8.9 million in 2010 to 25 million in 2050. And this is almost 180 percent!
However, this can be explained by an increase in the number of older people, because the Boomers are getting older every year (the number of elderly people should grow by 106 percent). Another reason for this situation may be a weak pension system. The aging population is not only self-destructively, but also pulls the subsequent generations to the economic bottom. Instead of investing in their children, Americans are forced to spend all the free money on their ancestors. This threatens not only the economy of the country, but the entire American way of life. 25 million older Americans can remain poor if you do not take any action.