Home Equity Can Boost Retirement Income
By JCA on April 28, 2025
By Donna Fuscaldo for the Beacon
Many retirees have built up significant home equity over the years, but surprisingly, they often overlook it in their retirement planning. With the average home equity for homeowners in the U.S. sitting at around $300,000, a house is a valuable asset that can be leveraged to support retirement.
“You can do a couple of different things with your home equity,” said Pam Krueger, founder and CEO of Boston-based Wealthramp, an SEC-registered adviser matching platform. “It all comes down to picturing the funnel. It starts wide at the top, and then, as you start to learn there are costs and rules, the funnel gets skinnier.”
The “how” of using home equity in retirement is straightforward — you can either cash out or borrow against it. The “why” is a bit more complex.
For some, tapping into home equity is a way to supplement retirement income, to protect and grow their nest egg. For others, it’s a way to cover unexpected costs or fund a personal dream.