According to the CRR, home equity is the largest store of wealth for retirees and, with reduced support from Social Security and pensions, many more will need it for retirement income. The two primary ways to tap home equity are downsizing, meaning moving to a less expensive house, and a reverse mortgage.
Downsizing adds to home owners’ savings, which boosts income from savings. It also frees up more income by reducing taxes, insurance, and upkeep.
A reverse mortgage allows home owners to stay in their homes. It provides income through a line of credit, lump sum, or monthly payments.
A PDF of the explanatory booklet, titled “Using Your House for Income in Retirement,” is available here.
Information about purchasing hard copies of the booklet is here.