Retirement savings in America? Not exactly crushing it.
The typical working adult has about $1,000 saved for retirement. Yes, really. And that number stretches across people in their 20s through their early 60s. Meanwhile, ask Americans how much they think they’ll need to retire comfortably and the answer often lands north of $1 million. That’s not a small gap — it’s a canyon.
So where’s the backup plan coming from?
For millions of people, it’s their house.
After decades of paying a mortgage and riding the wave of rising home values, many older homeowners are sitting on substantial equity — often far more than what’s in their retirement accounts. In some cases, their home is their largest financial asset by a mile.
That’s why home equity is becoming a central piece of the retirement puzzle. Instead of relying solely on 401(k)s or IRAs, retirees are looking at options like downsizing to free up cash or tapping equity through a reverse mortgage. The idea is simple: convert bricks and drywall into spendable money.
But it’s not a magic fix.
Nearly four in ten retirees still carry a mortgage into retirement, which limits flexibility. Reverse mortgages can provide breathing room, but they come with fees and fine print. And selling a longtime home isn’t just a financial decision — it’s emotional.
The big takeaway? Many Americans may be underprepared in traditional retirement savings, but homeowners have an asset that can offer real leverage. A house isn’t just shelter — for some, it’s the safety net.
Retirement planning might not look like it did a generation ago. For better or worse, the path to financial security may start at the front door.
Source: REALTOR® Magazine
“Americans Have Just $1K Saved for Retirement: Home Equity May Be Their Lifeline”
National Association of REALTORS®
