That's not true. Consider this fact: 17% of Baby Boomers have less than $5,000 saved towards retirement. For some of these people, their greatest asset is their home, and a reverse mortgage could permit them to live in their homes for the rest of their lives, as long as they pay the property taxes, properly maintain it, and insure it, without having to work until they drop dead. These are non-recourse loans, so the borrow will never owe more than what the property could be sold for. Also, a reverse mortgage that can be utilized as a line of credit could be a better solution than a traditional home equity line of credit, or HELOC. During the Great Recession, many banks in need of liquidity canceled or froze HELOC credit lines. Just when a borrower might have needed it most, those funds were not available. On the other hand, with a reverse mortgage that money will be available as long as the borrower adheres to the loan terms. That flexibility could be a lifesaver in case of a financial emergency.
How much Americans have saved for retirement