Retirement money in homes

About 85 percent of Americans view their homes as a reliable source for funding their retirement, beating out other options such as IRAs, savings, and working in retirement, according to a report by Prudential Real Estate Affiliates Inc.

The report, Building Security at Home, found that American homeowners believe the increase in the equity in their homes has been the most effective means of improving their retirement prospects.

To access the equity in their homes and also to reduce living costs, 62 percent said they expect to move or downsize sometime in their retirement.

A second study, Roadblocks to Retirement, asked Americans between 30-69 about their financial priorities, retirement preparation and their retirement concerns and challenges.

About 65 percent of survey participants said historically high real estate values have significantly helped their outlook for a financially secure retirement, while about 28 percent said that job security have assisted their retirement preparedness and 20 percent credited increases in the stock market with retirement preparedness.

About 54 percent of participants said employment-based retirement plans improved their retirement outlook, and 42 percent said income growth is a contributing factor to their retirement future security.

The biggest threats to a secure retirement come from the increased cost of living (71 percent) and health care costs (70 percent), according to survey responses.

Source: Inman News