U.S. News: Reverse Mortgages Minimize Housing Costs in Retirement

Housing is often considered one of the biggest expenses impacting retiree’s savings, however, using a reverse mortgage can help minimize these costs during retirement, suggests a recent article from U.S. News & World Report. 

The article highlights six major expenses for retirees, providing suggestions for how to minimize these costs during retirement. One of those suggestions, though briefly noted, includes the possibility of using a reverse mortgage to tap into home equity, as a way for retirees to “put more cash in their pockets.”

Although household expenses decline with age, falling on average almost 20% between ages 65-75, according to data from the Employee Benefit Research Institute cited in the article, retirees are still faced with a number of expenses to pay for during their non-working years.

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These may include health care, taxes, transportation, travel and expenses associated with caring for one’s adult children, such as paying for weddings, helping with a downpayment for their first house or even contributing to a college fund for grandchildren.

Read more about these expenses at U.S. News & World Report.

Written by Jason Oliva

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  • Where is the suggestion that reverse mortgages minimize housing costs? All that is said about reverse mortgages in the article is the following: “And many retired homeowners have the option to take out a reverse mortgage to put more cash in their pockets.”

    Perhaps one could argue that the cash provided by a reverse mortgage can be used to offset the cash needed to pay the costs of housing in retirement but that is much different than minimizing such costs. Beyond that the cash from a reverse mortgage can offset any of the enumerated costs; it is not limited to offsetting the cash needed to pay housing costs.

    If Mr. Sightings had provided some insight in how reverse mortgages can minimize the costs of housing during retirement, now that would have been an interesting proposition.

    The headline is quite misleading and the article does not substantiate it.

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