How to Combine a Reverse Mortgage with Other Retirement Income Streams
By Tyler Plack
Tyler Plack is the President of South River Mortgage. Tyler holds an active FHA Direct Endorsement (DE) underwriting certification and is the author of The Retirement Solution: Maximizing Your BenefitTyler is a seasoned entrepreneur and real estate investor renowned for his expertise in reverse mortgages and his commitment to addressing seniors' equity challenges. Tyler brings a unique perspective to his ventures, having built several successful companies throughout his career. His insights are frequently sought by industry publications, where he is recognized for his vast knowledge in the realm of reverse mortgages.
An avid investor in income-producing properties, Tyler is dedicated to helping seniors navigate their financial needs with compassion and expertise. When Tyler is not helping solve America's retirement crisis, he is a skilled pilot flying airplanes for fun.
When it comes to retirement planning, there’s no one-size-fits-all solution. Most retirees rely on a mix of income sources—Social Security, pensions, investments, and personal savings. But there’s one more resource you may not have considered: your home equity.
With a reverse mortgage, you can unlock that equity and combine it with your other income streams to create a more stable, flexible retirement plan. Let’s look at how this works in practice.
Why Multiple Income Streams Matter
Relying on a single income source in retirement is risky. If Social Security gets cut, if your pension doesn’t keep up with inflation, or if the market takes a downturn, your entire lifestyle could be affected.
That’s why financial planners often encourage a diversified retirement income strategy. Adding home equity into the mix can provide a valuable buffer.
How a Reverse Mortgage Fits In
A reverse mortgage lets you borrow against your home’s value without taking on monthly mortgage payments. You can choose to receive the money as:
- A lump sum
- Monthly payments
- A line of credit that grows over time
This flexibility makes it easy to combine with other income sources.
Practical Examples
Here are a few ways retirees use reverse mortgages alongside their existing income:
- Social Security + Reverse Mortgage
Use Social Security to cover basic living expenses, while using reverse mortgage funds for bigger, less predictable costs—like home repairs, medical bills, or travel. - Pension + Reverse Mortgage Line of Credit
Your pension may be steady but not generous. A reverse mortgage line of credit can act as a backup fund if unexpected expenses arise. - Investments + Reverse Mortgage
When the market is down, withdrawing from retirement accounts can lock in losses. Instead, you can tap reverse mortgage funds temporarily and let your investments recover. - Annuities + Reverse Mortgage
An annuity provides consistent income, but often not enough for discretionary spending. Reverse mortgage proceeds can fund lifestyle goals without touching the annuity.
The Big Advantage: Flexibility
By combining a reverse mortgage with your other retirement income, you gain flexibility. You don’t have to sell investments at the wrong time, cut back on travel, or stress about rising living costs.
Instead, you create a layered plan where each income source supports the others.
The Bottom Line
Your home isn’t just a place to live—it’s also one of your biggest financial assets. Using a reverse mortgage alongside your existing income streams can give you more stability, more options, and more peace of mind in retirement.
At South River Mortgage, we help retirees build smarter, more flexible retirement plans by putting their home equity to work.
Curious how much a reverse mortgage could add to your retirement income?
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