Can a Reverse Mortgage help delay Social Security Benefits?

Yes — a reverse mortgage can absolutely help delay Social Security benefits, and for many retirees, that strategy can lead to a stronger, more secure retirement.

Here’s how it works:

Delaying Social Security past your full retirement age (which is typically between 66 and 67, depending on your birth year) can increase your monthly benefit by up to 8% for each year you wait, all the way until age 70. But for many people, the biggest challenge is figuring out how to afford daily living expenses while waiting to claim those higher benefits.

That’s where a reverse mortgage comes in.

A reverse mortgage allows you to access tax-free cash from your home equity, giving you income to live on now, so you don’t have to claim your Social Security early. By using a reverse mortgage to bridge the gap between retirement and age 70, you can maximize your future Social Security income while still covering your immediate financial needs.

• Example 1: Covering monthly expenses
  A 65-year-old homeowner wants to delay Social Security until age 70 to get the highest possible benefit but doesn’t have enough monthly income to comfortably retire now. She sets up a reverse mortgage with monthly payments to cover living costs for the next five years — allowing her to delay Social Security and increase her lifetime income.

• Example 2: Using a line of credit as a backup
  A couple in their late 60s has savings but wants to avoid spending it too quickly. They open a reverse mortgage line of credit they can draw from as needed. This gives them financial breathing room while they delay Social Security and let their benefits grow.

• Example 3: Paying off an existing mortgage
  A retired couple still making monthly mortgage payments wants to delay Social Security, but their mortgage is straining their budget. They use a reverse mortgage to pay off that loan entirely, eliminating the monthly payments and giving them extra cash flow so they don’t have to draw on Social Security early.

Why this strategy matters:

• Every year you delay Social Security (past full retirement age), your benefit increases

• A reverse mortgage provides non-taxable income to help support you in the meantime

• This can lead to higher lifetime income and more financial security in later years

A reverse mortgage isn’t right for everyone, but when used strategically, it can be a smart financial tool — especially for those looking to maximize Social Security and make the most of their retirement years.

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