In a recent story titled How to Create a Retirement 'Paycheck,' syndicated columnist and certified financial planner Liz Weston recommended strategies for improving retirement security that included getting a reverse mortgage.
After first discussing income annuities, Weston added, “Another option could be a reverse mortgage. If you have a lot of equity but still have a mortgage, a reverse mortgage could pay off your loan and eliminate those monthly payments.”
Other strategies shared by Weston included claiming Social Security at age 70 to maximize benefits and using the “Spend Safely in Retirement" method created by retirement expert Steve Vernon and the Society of Actuaries that helps consumers determine the percentage of funds they should withdraw each year from their retirement accounts to live off.
In a separate article, Motley Fool writer Selena Maranjian included reverse mortgages on a list of 12 ways to get more money in retirement. “Reverse mortgages are an…option for many but not all people. They involve borrowing money with your home as collateral. A lender agrees to pay you a certain sum each month – or perhaps a lump sum – and you get to stay in your home,” wrote Maranjian.
Other strategies that can improve retirement security include paying off high-interest rate debt; increasing the amount of money saved and invested leading up to retirement; investing in dividend-paying stocks; working a little in retirement; and moving to a less costly area.
National Reverse Mortgage Lenders Association Weekly Report