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#94 Using a reverse mortgage as insurance against Social Security cuts


July 26th, 2022

Two years into what you’ve dubbed Retirement Stage One (the first six to seven years when you do your long-planned European and South America biking and hiking vacation trips while still keeping up some income flow through part time work), you’ve become concerned about Stage Two. You’ve read numerous reports about the fact that, twelve years from now (by which time you’d planned to be fully retired and focused on hosting gatherings in your home rather than on traveling), Social Security benefits are scheduled to be significantly reduced. In fact, while neither of you has yet claimed benefits, the plan was to start them year after next; your careful calculations don’t work well if, in fact, there is to be a 22% reduction in benefits.

One option to consider by way of “insuring” against that projected future cut in Social Security benefits is a reverse mortgage refinance. By using your housing wealth to build a reservoir of funds that can be used later on to supplement reduced social security income, you will be able to seamlessly execute your “Stage One-Stage Two” retirement plans. As you continue your Stage One biking/hiking adventures (keeping up your property taxes, insurance, and regular maintenance of the home) not only will no payments be due, but your reverse mortgage line of credit will actually be growing.

With a reverse mortgage, your home itself will function as insurance against future reductions in social security benefits.

David Garrison
Home Equity Retirement Specialist
NMLS # 1595194
Serving the State of Indiana
p (317) 644-2595 c (765) 516-0130
e [email protected]

2169 East Rutland Lane, Martinsville, IN 46151
Corporate NMLS #1025894