The reverse mortgage market has been operating on the idea that the baby boomer generation is going to give an even bigger boost to the industry than has already been seen to date. That's due to the fact that this is a large generation that is just about to enter reitrement age and is typically in the position of being financially strapped for cash. However, new suggestions indicate that this trend may not be as widespread as initially thought.
The thing is that baby boomers tend to approach aging differently from their parents' generation. It is of much less importance to them that they remain in their current home upon retiring. This means that they are less inclined than their parents to seek out financial means of staying at home solely for the sake of keeping the house.
Furthermore, baby boomers are a much more active generation than their parents are. This means that more of them will travel the world without maintaining a home. It also means more of them will work part-time after retirement. As a result, there will be less need among them for the reverse mortgage loan than there is for the current generation. Of course, there are also considerably more baby boomers than current retirees so the numbers may still go up for the industry in the coming years.
Question of the Day: Do you think the average baby boomer will have an interest in reverse mortgage loans?
