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Changing World, Changing Plans? 5 Financial Facts to Support Your Retirement Strategy
Financing Retirement, Refinance, Retirement Planning

Changing World, Changing Plans? 5 Financial Facts to Support Your Retirement Strategy

Financial Facts to Support Your Retirement Strategy

Did you know that 64% of Americans changed their spending habits in 2020? 2020 changed the world and that change spread to our bank accounts, financial views and long-term savings goals for retirement.

Whether you’re months or years from retirement, it’s never too late to look for opportunities to make the most of your assets when financial planning for retirement. Reverse Mortgage Funding has provided five financial retirement facts to help you when planning your retirement strategy:

  1. The standard deduction is inching upward. The standard deduction is a set dollar amount that reduces your taxable income. And thanks to inflation, it’s on the upswing. You may deduct an additional $200 to $400, depending on your filing status. So if you’re mulling over whether to itemize or choose the standard deduction, figure out which results in the lowest tax bill to keep more money in your pocket for when you retire.
  2. The estate tax exemption is taking a huge leap. For the 2020 tax year, the estate tax exemption is set at $11.58 million — that’s $180,000 more than previously. But unless Congress intervenes, the exemption expires in 2025, making now an optimal time to devise an estate plan into your financial retirement strategy.
  3. 401(k) contributions are increasing. Still working and saving to meet your retirement plan? While the traditional IRA and Roth contribution limits remain unchanged, the contribution limits for 401(k) accounts for 2020 increased to $19,500. If you’re age 50 or older, you may also be eligible to make an additional $6,500 catch-up contribution to pad your retirement savings.
  4. The cost of healthcare is going up, and so are HSA contributions. For the 2020 tax year, your Health Savings Account (HSA) contribution was capped at $3,550 for an individual and $7,100 for a family — a $50 and $100 increase, respectively. And if you’re age 55 or older, there’s another bonus: you can add an additional $1,000 through a catch-up contribution. Why not take advantage of the tax-free savings to cover your qualified medical expenses? Make sure to include in your retirement financial planning unexpected medical expenses that may arise in the future.
  5. Financial aid asset protection allowance is plummeting. Are you planning on retirement but still have college-aged children? You may already know that the Free Application for Federal Student Aid (FAFSA) excludes a portion of your non-retirement assets in its calculations. Unfortunately, that amount is taking a nose-dive. In 2010, it was $52,400 for a 48-year-old married parent. By 2020, that 48-year-old married parent could only protect $6,000 in assets. That’s a $46,400 difference! Over the next few years, asset protection allowance may disappear altogether, so prepare now within your financial retirement strategy.

A reverse mortgage may be the key to meeting your retirement goals 

From high unemployment rates to a weak economy, there are many outside factors that can affect your funds. Your retirement savings strategy will be more effective when you focus on the things you can control like choosing a reverse mortgage.

A reverse mortgage loan, for example, is an exclusive financial tool designed for homeowners age 62 and older. As a borrower, you can leverage the equity built up in your home to supplement your retirement income — all while continuing to live in it and retain ownership. Best of all, you choose how to receive your money, either as a lump sum, monthly payments or a line of credit that’s there when you need it.* As with any mortgage, you must meet your loan obligations, keeping current with property taxes, insurance, and maintenance With RMF discover how to retire more freely with a reverse mortgage.

Want to learn more? Contact Reverse Mortgage Funding (RMF) at (888) 277-1567 and schedule an in-person appointment with a local loan specialist at your convenience.

For more retirement news from RMF visit our Retirement News with Professor Craig here.

This content is sponsored by RMF, one of the nation’s leading reverse mortgage lenders. We are dedicated to helping older Americans retire more freely, in the comfort of their own homes. As a result of our commitment to providing an extraordinary and positive customer experience, we have earned a 98% customer satisfaction rating; a 4.8-star / Excellent score on Trustpilot; 4.8 out of 5 stars on LendingTree; and an A+ rating with the Better Business Bureau. Call 888-277-1567 to speak with a licensed reverse mortgage specialist to learn about our retirement financing products and solutions.

This information is intended for those who are interested in financial education. This information is provided for convenience only, and RMF make no warranties concerning the accuracy or completeness of any of the information. Information is subject to change without notice, and RMF is under no obligation to provide updated information. Materials or statements made by a third party and located or posted on the Site are those of the third party and do not necessarily reflect the official policy or position of RMF. This is not financial, tax, compliance or legal advice and should not be taken or relied upon as such. Each individual should consult with his/her financial, tax, or legal professional.  All mortgage origination services are provided by Reverse Mortgage Funding LLC, a state licensed mortgage lender, which is licensed or otherwise exempt from state licensing in the states in which it originates mortgage loans.”

*Borrowers who elect a fixed rate loan will receive a single disbursement lump sum payment. Other payment options are available only for adjustable rate mortgages.


If you have equity in your home and believe you meet the eligibility requirements, a HECM may be the option that could help you retire smart.

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