Hypothesis

Buy a home to retire happily. Here is a simple and easy solution for happy retirement. It is comfortable too.

Do not start saving for retirement by cutting your expense. Do not 'invest' the money in mutual funds or unit plans or any other for your retirement. The money you save for your retirement will not grow. The money you invest for your retirement may or may not grow.

Here is a way you can live happily without cutting your expenses and retire happily.

Buy a home to retire securely. Apart from buying a home, you do not need to spend/save anything for your retirement. The EMI you pay for your home is your retirement investment. Two in One. You live in your home. At the same time you secured your retirement too.

By the time when you finish your EMIs probably you may have reached the retirement age. You have to retire. Since you have not saved/invested for your retirement, you may be empty or with some lump sum amount. If you are a private company employee, you do not have pension. Do not see this situation panic.

Your only asset is your home. You may sell your home for cash to meet out your expense, when you stop earning. If you sell, you need to vacate your home. Do not sell your home.

If you get loan against property, you have to pay the EMI. Skip this option.

The best way to handle the situation is ' Reverse Mortgage Loan'.

Reverse mortgage loan is given against the equity of your home. In reverse mortgage loan you do not need to pay the EMI every month. You do not need to vacate your home. You can live in your home as long as you are alive. At the same time the equity of your home will be issued monthly as you prefer.

You do not need to repay the loan amount. When you die or leaving, the loan will be realised from your home, which will be taken care by creditors/banks.

Buy a home now, reverse mortgage it when you want to retire. That's it.

Assume that you buy a home for 25 lakhs. You are paying the EMI for the next 20 years. After 20 years your house value may be 1 crore or more than your purchase price. Reverse mortgage it for its current value after 20 years. You will have a 'pension like' monthly income, which you do not need to repay and you do not need vacate your home.

Reverse Mortgage Loan is issued in few nationalised banks of India. Soon it may be issued in all the nationalised banks of India. Government may encourage all the nationalised banks to issue Reserver Mortgage Loan.

In this way, Government also can relieve from the burden of issuing pension, financial security for senior citizens and etc.

If you are buying a home or already bought home, do not spend additionally for your retirement.

Verify this information by cross checking with your bank. If the informations provided about reverse mortgage loan are valid, be happy at your retirement.

Let your EMI for housing loan be your retirement savings. An housing loan now and reverse mortgage loan latter. Retire securely and happily and live in your home.

Pay for one thing , but get two benefits. A home and a happy retirement.