The index, which surveys American working adults at growing businesses with 10 to 1,000 employees, is released each quarter by The Principal Financial Group® and conducted by Harris Interactive®. It also surveys retired Americans in acknowledgment of the retiring baby boom generation.
The survey also indicates that of the nearly two-thirds of workers (65 percent) who own their primary residences, 36 percent have less than 20 percent equity built up in their homes. The majority of retirees, on the other hand, have their homes completely paid off (60 percent). While the concept of reverse mortgages to fund retirement appears to be catching on somewhat, the majority of retirees and working American homeowners surveyed say they have not considered taking out a reverse mortgage or selling their home to help fund retirement (78 percent of retirees and 76 percent of workers).
"The current home mortgage instability is a critical issue for Americans’ sense of financial well-being and long-term security," said Dan Houston, executive vice president of Retirement and Investor Services, The Principal®. "Those with inadequate savings during retirement might be forced to consider home equity as a source of retirement income.
Yet despite the anxiety Americans may have, it’s reassuring that most workers and retirees do not plan to tap into home equity, or consider a reverse mortgage, to help fund expenses during retirement. Instead, it is crucial that retirees and workers develop and implement an adequate retirement savings plan that will allow them to maintain their lifestyles throughout retirement."
