Will my reverse mortgage affect Social Security benefits or increase my Medicare premiums?

I got a reverse mortgage last year when I was 68. The good news is that a reverse mortgage does NOT affect your Social Security retirement benefits at all. Those benefits are based on your work history, not your current income or assets. However, it CAN potentially affect Medicare premiums if you take a large lump sum that pushes your income over certain thresholds for IRMAA (Income-Related Monthly Adjustment Amount). This is especially true if you take a big withdrawal in a single year. If you're on SSI (Supplemental Security Income), different rules apply - the money from a reverse mortgage could affect those benefits if the funds sit in your bank account past the end of the month you receive them.

Just to add to what @SeniorFinanceGuru said, the key thing with Medicare is that the IRMAA is based on your MODIFIED ADJUSTED GROSS INCOME from 2 years prior!!! So if you get a reverse mortgage in 2025, they'll look at your 2023 tax return to determine your Medicare premiums for 2025. Reverse mortgage proceeds are considered LOAN proceeds, NOT income. So they don't directly count as income for IRMAA calculations. BUT if you invest that money and earn interest or dividends, THOSE earnings DO count as income and could potentially push you into a higher IRMAA bracket.

I've been working with seniors on financial issues for years, and there's often confusion about how reverse mortgages interact with government benefits. Let me clarify a few points: 1. Social Security retirement benefits - NOT affected by reverse mortgage proceeds 2. SSI (Supplemental Security Income) - CAN be affected if the money sits in your account 3. Medicare premiums - Only affected if your taxable income increases 4. Medicaid eligibility - CAN be affected since it's asset-based For Medicare specifically, the 2025 IRMAA income thresholds that trigger higher premiums start at $103,000 for individuals (based on 2023 tax returns). Unless your income is close to that already, you likely won't see any Medicare premium increases. The bigger consideration is long-term planning. If there's any chance you'll need Medicaid for long-term care, a reverse mortgage reduces the equity in your home that might otherwise be exempt from Medicaid asset calculations.

I tried calling Social Security directly to ask this exact question last month and was on hold for HOURS only to get disconnected twice!!! So frustrating! I ended up using this service called Claimyr (claimyr.com) that my daughter found - they got me connected to an actual SSA agent in under 10 minutes. The agent confirmed what others here are saying - reverse mortgage doesn't affect SS retirement benefits. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU

My sister got a reverse mortgage and regrets it!!! The interest rates are TERRIBLE and the fees are crazy high. She got $60k but had to pay like $8k in fees!!!! And now the loan balance is getting bigger every month. Just be careful!!! Did you check other options like a HELOC or home equity loan?

Have you considered selling your home and downsizing instead of a reverse mortgage? That's what I did at 70 and it was the best decision ever. Freed up cash, smaller place to maintain, and no debt. Just a thought.

@JaneR - circling back to your original question with a bit more detail. The Medicare IRMAA thresholds for 2025 (based on 2023 income) are: - Individual income up to $103,000: Standard premium (about $174.70/month in 2025) - $103,001-$129,000: Standard + $71.20 - $129,001-$161,000: Standard + $178.10 And it goes up from there. Since you mentioned your income is around $26,000, you're well below these thresholds, so you should be fine. The reverse mortgage proceeds won't count as income, only any interest you might earn on that money if you kept it in an account. And yes, your Social Security retirement benefits are completely safe - they won't be affected at all by a reverse mortgage.

just make sure u dont get scammed my uncle got a reverse mortgage and the company was shady af they took advantage of him being old. get your kids or someone younger to look over all the paperwork!!

One more important thing! The reverse mortgage company will require you to stay current on property taxes, homeowners insurance, and home maintenance. If you don't, they can foreclose. Make sure you budget for these ongoing expenses with your SS benefits. That's where some seniors get into trouble with reverse mortgages.

Just wanted to share my experience as someone who went through this same decision process two years ago. I was 69 and in a very similar financial situation - living on Social Security and a small pension, needed about $40k for home repairs and some medical debt. I can confirm what others have said - my Social Security benefits were completely unaffected, and my Medicare premiums stayed the same. The key thing that helped me was working with a HUD-approved counselor (which is mandatory anyway) who walked me through all the scenarios and helped me understand the true costs. One tip: if you're comparing lenders, pay close attention to the "Total Annual Loan Cost" (TALC) rates they're required to show you - this gives you a better picture of the real cost over time than just looking at interest rates. Also, some lenders offer a "line of credit" option where you only take what you need when you need it, which can save on interest charges compared to taking a big lump sum upfront. The peace of mind of having my roof fixed and medical bills paid off has been worth it for me. Just make sure you're working with a reputable lender and have someone you trust review everything with you. Good luck with your decision!