Housing wealth isn’t waiting for a seat at the retirement planning table

By Cheryl Canzanella

You know that feeling when a topic keeps popping up over and over again until it finally hits you and you can’t ignore it anymore? That was me and reverse mortgages.

I kept hearing about them at conferences, in articles, on podcasts. So, I finally gave in and paid attention. I sat through a presentation and—surprisingly—it wasn’t what I expected. In fact, it sounded a lot like the conversations I was already having about income, taxes, and sequence-of-returns risk. Only this was a different tool. One I didn’t know how to use… at least not yet.

So I got curious.

I did some research. I came across financial thought leaders like Wade Pfau, Barry Sacks, and Jamie Hopkins who broke down the math, the mechanics, and the misconceptions.

And somewhere along the way, everything I believed about reverse mortgages started to unravel.
That’s when everything changed.

The more I learned, the clearer it became. The disconnect between how we’ve traditionally planned, the products we rely on, and the assets we utilize.

Once I saw it, it was impossible to unsee. I started to wonder…Why aren’t more people talking about this?

Here are four reasons why housing wealth is still left out of most retirement conversations and why that needs to change.

1. Common oversight

Home equity is often a client’s largest asset… and yet, it’s generally left out of the plan.

In my search to learn more, I asked respected advisors I’ve known for years… “Are you talking to clients about housing wealth?” Most said no. Not because they didn’t care but because they hadn’t received any training on it, they believed compliance didn’t allow them or assumed having those conversations wasn’t part of what they can offer.

It’s funny, we’re totally comfortable talking about market risk, withdrawal rates, inflation, investment returns. But when it comes to the house? Crickets.

That’s a problem. Because if we’re ignoring one of the biggest resources available to retirees, we’re also missing one of the biggest opportunities to improve outcomes, especially when it comes to flexibility, resilience, and peace of mind.

2. Lingering wounds

Let’s be honest…reverse mortgages have a messy history. And rightfully so. The scars left on both consumers and professionals still hurt today.

But let’s not forget…annuities had a rocky reputation too.

Over time, annuities earned credibility through regulation, improved products, and better education. And today, they are welcomed with a permanent seat at the retirement planning table.

Reverse mortgages—specifically the Home Equity Conversion Mortgage (HECM)—have followed a similar path. The product has matured significantly over the last 20 years. Today’s HECM includes:

• Non-borrowing spouse protections
• FHA insurance
• Access via flexible lines of credit or monthly payments
• More stringent oversight than probably any other loan on the market

But it’s not just about product upgrades, it’s about how we use the tool.

Reverse mortgages aren’t just about pulling equity out of the home. They’re about using it strategically to support retirement goals, backed by solid research from respected industry experts. When used correctly, they could:

• Eliminate existing mortgage payments (taxes and insurance still apply)
• Serve as a volatility buffer in down markets
• Supplement income without increasing taxable distributions
• Help delay Social Security for higher lifetime benefits
• Preserve portfolio assets through coordinated withdrawals

These strategies aren’t hypothetical. They’re evidence-based and peer-reviewed and they’re changing the way we think about retirement income.

3. Planning evolved

Retirement isn’t one-size-fits-all. Every client brings their own timelines, risks, and goals to the table. Yet many advisors still build retirement plans while overlooking one of the most significant assets many clients hold…their home.

That’s like trying to finish a puzzle and leaving the biggest piece in the box.

Sure, home equity won’t be the right fit in every case. But in a world of rising costs, living longer, fewer pensions, and unpredictable markets, it’s a tool we can’t afford to ignore.

With $14trillion of unmanaged equity sitting in retirees’ homes, it’s time we broaden the definition of assets under management to not just the ones on the statement but also the ones under the roof.

Because here’s the reality:

• The average retiree holds more wealth in home equity than in their retirement accounts.
• About half of retirees are still making mortgage payments, creating an unnecessary strain on retirement cash flow.

If we’re truly acting in our clients’ best interests, it’s time we stop treating home equity as a last resort and start recognizing it for what it is: a powerful, underutilized asset.

4. Crowded market

In a sea of sameness, everyone’s talking about investments, tax strategies, Social Security, and insurance. But very few are talking about housing wealth.

And that’s exactly where the opportunity lies.

When you understand how to integrate home equity into a retirement income strategy, you differentiate yourself. You become the advisor who looks at the full picture. Who adds unexpected value. Who builds deeper trust, gets more referrals, and strengthens client retention.

That’s not just good planning for your client; it’s good business for you.

The seat has always been there

What changed my mind wasn’t a pitch. It was the math. The research. The realization that true planning means evaluating every available tool.

I believe in this so much that I changed careers, implemented these strategies within my own family, and now help other financial professionals “see the gap” to enhance the planning they’re already providing.

Housing wealth isn’t waiting for a seat at the retirement table-because it’s been sitting there all along.

It’s time we stopped ignoring it.

Cheryl Canzanella, CLU®, ChSNC®, LUTCF®, CAP® is a Retirement Solutions Partner. With 25 years in financial services, Cheryl helps advisors confidently integrate housing wealth strategies into holistic retirement plans, enhancing income stability, long-term client options and tax efficiency.