Can a Reverse Mortgage Help Preserve My Retirement Savings?

Yes, a reverse mortgage can absolutely help preserve your retirement savings by allowing you to tap into your home equity instead of depleting your investment or savings accounts too quickly.

Here’s how it works:

A Home Equity Conversion Mortgage (HECM) is a reverse mortgage that gives homeowners 62 and older access to a portion of their home’s value as tax-free funds, all while continuing to live in the home and retain ownership. Best of all, there are no required monthly mortgage payments, which means you can redirect that money—or avoid spending your savings altogether.

Here’s how a reverse mortgage can help protect your nest egg:

• Reduces the need to withdraw from retirement accounts (like IRAs or 401(k)s), especially during down markets—giving your investments more time to recover and grow.

• Eliminates an existing mortgage payment, allowing you to live more comfortably on your fixed income and reduce the pressure to dip into savings for everyday expenses.

• Provides a line of credit that grows over time, giving you access to more funds down the road if you don’t use them right away—this can serve as a powerful buffer for unexpected costs or market volatility.

• Offers additional cash flow for essentials like healthcare, home maintenance, or even lifestyle upgrades—without touching your retirement portfolio.

By using your home equity strategically, a reverse mortgage can help extend the life of your retirement savings and give you more control over when and how you access other assets.

A reverse mortgage can be part of a smart financial strategy that helps you preserve your wealth, protect your portfolio, and enjoy a more financially secure retirement.

Learn more about eligibility requirements for a reverse mortgage, situations where a reverse mortgage is best used, and common myths around reverse mortgage that we debunk with facts