For many retirees, the idea of giving up their family home is a tough proposition to accept. But according to Steven Sass, a research economist at the Center for Retirement Research at Boston College, that’s exactly what’s needed for many individuals to afford retirement.
“People have a serious behavioral resistance to touching their savings or home equity in retirement,” Sass told CNBC. “We think a lot more retirees need to think about using their house for income.”
According to the latest University of Michigan Health and Retirement study – conducted in 2010 – the average household entering retirement has a net worth of just over $300,000, including their home.