More and more financial planners, including Nobel Laureate economist and M.I.T. professor Robert Merton, are suggesting reverse mortgages to address:
- Declining income on retirement with continued mortgage payments;
- Income replacement to delay drawing Social Security until age 65;
- Supplement low or moderate Social Security income;
- Reduce fear or uncertainty retirement funds might run out;
- Protect against sudden decline in income;
- Purchase home with no mortgage payment (property taxes and insurance must still be paid);
- Source of funds for occasional or unforeseen expenses.
A financial planning industry article can be found here:
You should always consult with a financial, legal, or tax planner for details specific to your situation.