Getting a reverse mortgage is a big financial move. It's not just something that affects the senior homeowner but often the whole family too. That’s why it’s so important to have open conversations early on—with adult children and other loved ones—to really understand how a reverse mortgage works and how it makes sense as part of a bigger retirement plan. Instead of seeing it as a last resort, think of it as a flexible tool that can help retirees live more comfortably and securely. Here’s what we’ve found to be helpful in those conversations.

1. Open and Honest Conversations Make a Difference

Retirement planning isn’t always easy, but open and honest talks can go a long way. It is unfortunately still rare for aging parents and their adult children to have these discussions until it becomes an urgent situation. A reverse mortgage gives families a reason to sit down together and talk through what the senior homeowner needs and wants in retirement. These discussions help everyone get on the same page and make sure decisions are made thoughtfully, with the future in mind.

2. Turning Home Equity Into Real-World Help

For a lot of retirees, their home is their biggest asset—but it’s not exactly easy to tap into unless you sell or borrow against it. A reverse mortgage lets you turn that home equity into cash you can actually use. You can use the money for home upgrades to age in place, cover medical bills, or just make life more comfortable. In fact, a 2022 Urban Institute report found that about 42% of older homeowners have over 80% of their wealth tied up in their homes.

3. Using It as a Bridge to Delay Social Security

Delaying Social Security can be a smart move. If you wait until age 70 instead of starting at 62, your monthly benefit can go up by around 76%. That’s huge. A reverse mortgage can help bridge the gap, giving you money to live on while you wait—kind of like creating your own paycheck. That bigger Social Security check later can offer a nice buffer against the risk of outliving your money.

4. Building a Safety Net with a Growing Credit Line

One great feature of reverse mortgages is the growing line of credit. It is structured to increase over time, giving you more to draw on later—even if your home’s value doesn’t go up. This can come in handy for surprise expenses or if you ever need in-home care. Research by Wade Pfau, a top retirement expert, shows that using a reverse mortgage as a backup plan can actually strengthen your overall financial picture.

5. Protecting Investments from Bad Timing

There’s something that financial advisors commonly refer to as “sequence of returns risk,” and it can really have a negative impact with your retirement savings if you have to withdraw money during a market downturn. Instead, you can use a reverse mortgage to cover your expenses after a market downturn while you let your investments recover. A 2012 study in the Journal of Financial Planning by Barry and Stephen Sacks showed that this strategy can help your savings last longer.

6. A Tool for Stability and Leaving a Legacy

Using a reverse mortgage wisely can actually help you leave more to your kids. By reducing the pressure on your investment portfolio in down markets and delaying Social Security, you’re giving your overall plan more financial flexibility. That extra flexibility can help you avoid selling investments at a loss, maintain a more stable cash flow throughout retirement, and preserve the value of your long-term assets. All of this contributes to greater financial stability for you—and potentially a larger inheritance for your heirs.

Wrapping It Up: Not Just for Emergencies

Reverse mortgages aren’t just for people in a pinch. When used thoughtfully, they can be a solid part of a well-rounded retirement plan. They help you manage risk, access money when you need it, and make smart choices that benefit you and your family in the long run. The key is planning ahead and having those honest conversations early on.