Curious about how a reverse mortgage may impact your Social Security benefits? Get the facts and make informed decisions about your retirement income with our comprehensive guide!

If you’re approaching retirement or have already retired and are considering a reverse mortgage, you may be wondering if receiving a lump sum payment or monthly income from a reverse mortgage could reduce your Social Security or Medicare benefits.

According to the Consumer Financial Protection Bureau and elder care legal advisors, reverse mortgages will not affect Social Security payments or Medicare benefits. The reason? These benefits are not connected to income qualifications. Everyone who is age-qualified for Social Security is entitled to receive them.

How Do Reverse Mortgages Work?

Reverse mortgages are home loans that use the equity that you have in your home. If you’ve owned your home a long time, especially if the mortgage has been paid off or is close to being paid off, you have a significant amount of equity.

Reverse mortgages have been created to help retirees to have access to funds they may need for home repairs or for living expenses. They can give people peace of mind knowing that they will be able to pay for their ongoing living expenses.

Other Concerns With Reverse Mortgages

Some people do not receive regular Social Security checks, but instead, supplemental security income (SSI). Reverse mortgage income may affect SSI and Medicaid benefits. It must be reported to the Social Security Administration, unless you take only the funds you need each month and use them completely.

Why? Because SSI and Medicaid are means-related benefits. Reverse mortgage funds that you do not completely spend in the same month you receive them could be counted as assets, affecting these means-tested benefits.

However, older adults who receive Social Security and Medicare benefits are not in the same means-tested category as SSI and Medicaid recipients.

Learning About Reverse Mortgages

A reverse mortgage is a home loan that can provide older adults with income or access to a line of credit to use as they need it. It’s important to understand your unique financial circumstances and how a reverse mortgage could benefit you and your loved ones. Learn your options in reverse mortgage by talking with a qualified and experienced mortgage broker about the reverse mortgage process through California Platinum Loans today. 


Consumer Financial Protection Bureau, “Reverse Mortgage: A discussion guide,” August 2021

Moen Sheehan Meyer Elder Care Attorneys, “Does A Reverse Mortgage Affect Social Security or Medicare?,” 13 June 2022