Reverse Mortgage Could Be a Good Way to Delay Social Security

man wearing a suit sitting in a table showing a mortgage loan contract and where the signer must signMany senior citizens in the U.S. have used reverse mortgage programs to delay their claims on Social Security benefits until they reach 70 years old, due to several reasons.

Some advantages of delaying benefit claims include receiving 100% of the primary insurance amount. In some cases, you could even receive up to 132% of the amount at 70 years old, depending on your bright year. However, this strategy does not work well for everyone.

Mortgage Types

A reverse mortgage program functions differently from the regular one since it allows you to borrow funds against the value of your residential property. You can either receive the money as a lump sum, fixed monthly payment, or as a line of credit. The U.S. Department of Housing and Urban Development’s home equity conversion mortgage (HECM) is perhaps the most common type.

If you are already 62 years old and feel confident that you would have enough income sources, an HECM loan serves as an alternative choice with some caveats, including real estate tax and hazard insurance payments.

Qualified Scenarios

A reverse mortgage particularly helps widows and divorcees since they normally have lower Social Security benefits, which makes sense in delaying their claims until 70 years old. In other cases, married couples can adopt this strategy only if they have already understood the financial risks.

Those with little to no savings can also use an HECM loan. Whether or not you intend to take out an HECM loan, senior citizens should first consult with a financial advisor, since a reverse mortgage is a complicated strategy.

While delaying your Social Security to maximize benefits may seem like a good idea, you need to determine your sources of income until your desired age to file claims. In addition, you should use a reverse mortgage when the rewards outweigh the supposed risks.


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