Grandparents Spend $27.5 Billion
Per Year on Grandkids

72.2 % of Grandparents Wish They Could Spend More

Liberty Reverse Mortgage and Sacramento State University compiled the second annual Grandparent’s Cost Index® to examine the amount of money Grandparents spend on their grandchildren, their spending habits, and whether they feel like they are spending all they want or can on their grandchildren.

Among the 56 Million Grandparents in the United States, on average $27.5 billion is spent nationwide on grandchildren per year. The economic impact could increase significantly if the same Grandparents were able to spend what they desired.

“Grandparents who have mortgages spend a lot less than those who do not,” explains Professor Dennis H. Tootelian, Ph.D. “The economic impact of Grandparents’ spending is huge, and it continues to grow as the spending power of these Grandparents increases.” This study shows that Grandparents often times will borrow and take out loans to spend more money on their grandchildren.

“Liberty Reverse Mortgage works with clients 62 and older, and we’ve gotten pretty smart about what their needs and desires are,” says Pete Engelken, President of Liberty Reverse Mortgage. “Grandparents do not have any extravagant needs, they just want to be able to provide for themselves and spend money on their children and grandchildren. They simply don’t have the cash flow to accomplish this.”

According to a study released by the National Reverse Mortgage Lenders Association, age 62+ U.S. households, which comprise the majority of grandparents, have $4.3 trillion tied up in their home equity. If they were able to tap into even a small percentage of this equity, it would have a big impact on the nation’s economy. According to the study, additional spending could reach up to $56.2 billion.

About Liberty Reverse Mortgage:
Liberty Reverse Mortgage changes the lives of seniors by enabling them to convert the equity in their home into cash. It is the largest independent Reverse Mortgage company in the U.S. It provides only Reverse Mortgages, allowing it to concentrate solely on this financial product and permitting it to impart expertise on the benefits and regulations surrounding this government-insured program. Liberty recently entered into an agreement to be purchased by Genworth Financial®. The transaction is expected to close in the next 90 days.

* $27.5 billion is spent on grandchildren annually

* Grandparents with mortgages spend less than those without

* Among age 62+ households, $4.3 trillion is tied up in home equity

* National Grandparent's Day is Sunday, September 9, 2007. It became a nationally recognized holiday in 1978.

Full Press Release

Executive Summary

Media contact:
Greg Hayes, Vice President
Corporate Communication
Liberty Reverse Mortgage
916-979-4025 or 916-812-3122
www.libertyreverse.com

Grandparents Cost Index® is an official trademark of Liberty Reverse Mortgage.