Reverse mortgages and Social Security payments have been linked together for the past couple of months. However, this link is a rather questionable one.
In a recent report, MarketWatch explored using a reverse mortgage to delay Social Security though, it seemed very challenging to prove it as a viable option.
"The idea, according to proponents, is to maximize retirement benefits by supplementing your income with the proceeds from a Home Equity Conversion Mortgage and waiting to claim Social Security benefits until age 70," according to Reverse Mortgage Daily.
The trouble with the idea comes with the overall cost to the borrower. According to the report, The Consumer Financial Protection Bureau believes that a HECM benefits aren't always worth the costs that come with it.
The folks at MarketWatch had an interesting piece of advice for those looking into HECMs as a retirement plan. They insisted that prospecting retirees meet with a skilled and knowledgable financial planner, who can properly explain why they should or should not go with a HECM as a retirement option over Social Security.
To learn more about the reverse mortgages v.s. Social Security discussion, click on the image above.