Billionaire and former New York Mayor Michael Bloomberg has
decided to join the Democratic presidential primary. His decision and what he
plans to do has made the headlines in recent weeks. However, there’s one thing
that’s not getting that much attention and it involves his plan to enhance
American’s retirement security. One of the primary topics he touched was
reverse mortgage.
Proposed Reverse Mortgage Reforms
Minimum social security benefit
Bloomberg wants to add a new minimum social security benefit
that would increase the payouts for 10% of seniors along with a stronger
calculation of the cost of living benefits so retirees would cope better with
inflation.
Develop a public option retirement plan
Common retirement plans like 401(k)s or IRAs have limitations.
Bloomberg wants to create a public option plan that offers automatic
contributions for employees who are not participating in a pension or 401(k).
It is still not clear whether or not the public option retirement plan is
voluntary for those who don’t want to save in a different qualified retirement
accounts.
Lower Medicare costs, expand the coverage
Michael Bloomberg also plans to cap the cost of medications for
seniors who don’t have such protection. The cap on the out of pocket
expenditures on medications will be about $2,000 per year. Bloomberg wants
Medicare’s coverage to be expanded so it would include hearing devices, vision
exams, and dental care.
Reverse Mortgage Reforms
Bloomberg’s plan noted that people have equity in their
homes and it is often the largest asset that they have once they reach their
retirement age. However, they often do not use it to supplement their income inretirement.
There are several reasons why seniors are reluctant to do
and one of the most common ones is the cost. Equity release products are
usually unappealing and expensive and those are a few things why seniors are
the target of unscrupulous players.
Bloomberg wants to create more affordable and simpler loans
that are just like today’s federally insured reverse mortgage loan, which is also
known as the Home Equity Conversion Mortgage.
He also wants to have advisory services to enhance financial
literacy and help seniors during financial problems. The plan also includes
subsidizing loans for seniors who have low income but are still qualified and
promoting state property tax deferral programs.
It is clear that Bloomberg has ambitious plans. He wants to
focus on the frustrating issue of retirement income security that a lot of
Americans are facing today.
Call Reverse Mortgage Specialist if you want to know if a reverse mortgage loan is the best option for you.
David Stacey
Reverse Mortgage Specialist
Greenville, SC 29607
864 920 2733
http://reversemortgagegreenvillesc.com/
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