How a 67-Year-Old Used a Reverse Mortgage as a Bridge to Delay Social Security to 70 and Added $186,000 to Lifetime Income

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David Beren

Fri, May 29, 2026 astatine 9:26 AM CDT 5 min read

Quick Read

A 67-year-old homeowner tin money a three-year Social Security hold with a HECM Line of Credit alternatively of portfolio withdrawals, securing a imperishable $815 monthly payment summation (24% raise) portion avoiding sequence-of-returns hazard during marketplace downturns; the strategy nets astir $186,000 successful further beingness wealth.
A HECM enactment of recognition acts arsenic a volatility buffer, allowing retirees to sphere invested assets and debar taxable withdrawals that trigger Medicare IRMAA surcharges, making the delayed-claiming strategy viable adjacent erstwhile markets diminution aboriginal successful retirement.
A caller survey identified 1 azygous wont that doubled Americans’ status savings and moved status from dream, to reality. Read much here.

A 67-year-old widow with a paid-off location and a steadfast status relationship faces a deceptively elemental question: should she commencement Social Security now, oregon hold until 70 for a bigger check? The mathematics heavy favors waiting. The occupation is backing the three-year spread without gutting her portfolio successful a down market. One overlooked tool, a HECM Line of Credit, tin lick that spread and, successful this case, adhd astir $186,000 to her beingness fiscal position.

The Situation successful Plain English

She is single, 67, and owns her location outright. Her question shows up perpetually successful status forums: however bash you hold Social Security erstwhile your portfolio is your lone different root of income, and a atrocious series of returns successful the archetypal fewer withdrawal years could permanently harm the plan?

Here are the applicable facts:

Read: Data Shows One Habit Doubles American’s Savings And Boosts Retirement

Most Americans drastically underestimate however overmuch they request to discontinue and overestimate however prepared they are. But information shows that people with 1 habit person much than treble the savings of those who don’t.

Age 67, single, nary dependents claiming benefits connected her record
Home value: $620,000, owned escaped and clear
Retirement accounts: $850,000
Social Security astatine afloat status age: $2,540/month
Waiting until 70 boosts the monthly cheque by precisely 24% compared to claiming astatine 67, it's a permanent, inflation-protected raise.

The quality is $815 a period for life, inflation-adjusted by COLA. Over astir a 17-year remaining beingness expectancy astatine 70, that is $166,260 successful nominal other income.

The Real Tension: Funding the Three-Year Bridge

The delayed status recognition is among the highest risk-free returns successful idiosyncratic finance. Each twelvemonth of waiting past your afloat status property raises your monthly payment by precisely 8%. Because HECM draws are indebtedness alternatively than income, they debar triggering higher Medicare IRMAA surcharges that taxable IRA withdrawals often cause.

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