Is Using Home Equity as Retirement Income a Good Idea? A Closer Look

The Pros and Cons of Using Home Equity for Retirement

Your home might be a very valuable asset in retirement. But here's why you should make a point to save money instead.

When moving isn't so easy

Leaving a long-time home for retirement can present challenges and unforeseen obstacles, such as social network disruption and limited housing inventory. Considerations like mobility issues and emotional attachments may affect downsizing decisions.

• Be cautious: Downsizing a home may involve significant lifestyle changes and uncertainties that could impact your retirement comfort.
• Plan wisely: Evaluate the practicality of relying on home equity alone for retirement income and the risks associated with potential market fluctuations.

Try to save something

While it's tempting to rely on home equity, prioritize saving and investing for retirement to secure financial stability. Consistent contributions to retirement accounts can yield significant returns over time.