When it comes to retirement income, timing is everything. You can start Social Security as early as 62, but waiting until age 70 can increase your monthly benefit by up to 8% per year. The challenge? Covering living expenses in the meantime.
That’s where a reverse mortgage can help.
How a Reverse Mortgage Works
A reverse mortgage lets homeowners aged 62+ convert part of their home equity into tax-free cash — without selling their home or making monthly payments. You can receive the funds as a lump sum, a monthly income, or a flexible line of credit.
By using these funds strategically, you can delay Social Security benefits, increasing your
lifetime income.
Why This Strategy Can Make Sense
Let’s say you’re 64, retired, and own your home outright. You could draw modest monthly payments from a reverse mortgage until age 70, allowing your Social Security benefit to grow.
By doing so, you:
• Increase lifetime Social Security income
• Stay in your home
• Preserve other savings longer
• Receive tax-free proceeds
Is It Right for You?
Using a reverse mortgage to delay Social Security may be smart if you:
• Have substantial home equity
• Plan to stay in your home long-term
• Want to maximize guaranteed retirement income
Bottom Line
A reverse mortgage can be a valuable bridge — giving you the flexibility to delay Social Security and enjoy higher benefits later. But like any financial tool, it’s best used as part of a well-planned retirement strategy.