As policy uncertainty rattles older investors, how can reverse mortgage pros respond?

Retirement planning has long required navigating many financial risks — from outliving savings to market volatility and rising health care costs.

But new research from the Center for Retirement Research at Boston College finds that uncertainty surrounding federal policy has sharply intensified these challenges since early 2025.

A recent survey of retirees and near-retirees shows growing unease about the future. Concerns about financial security have increased significantly, while confidence in government policy has declined.

Many older Americans are responding defensively by delaying retirement, boosting emergency savings and shifting toward more conservative investments. The survey data builds on earlier findings by examining whether financial advisers can help clients manage that uncertainty. The answer appears complicated.

Policy risk weighs on households

Researchers define “policy risk” not as policy changes themselves, but as unpredictability about future decisions.

Even the possibility of change — such as during a closely contested election — can force households to prepare for multiple outcomes.

Research shows that such uncertainty tends to harm the broader economy — dampening activity, increasing market volatility and reducing investment. At the household level, the authors of the brief said it raises anxiety and can prompt costly precautionary behavior.

For older Americans, the most pressing concerns center on Social Security, Medicare and federal debt. Questions about how policymakers will address projected funding shortfalls — through tax increases, benefit cuts or both — loom large.

Survey data shows these concerns are not abstract. Many respondents reported increased media consumption about economic and policy developments, alongside a significant rise in financial anxiety.

Investor reaction, reverse mortgage perception

Older investors are not standing still.

The survey found that 21% of those still working have postponed retirement. Meanwhile, 28% have increased their emergency savings and one-third have shifted toward more conservative investments.

These actions reflect an effort to guard against uncertainty, although research suggests such defensive moves can carry their own costs.

Overall, the findings suggest that older Americans are keenly aware of increased policy uncertainty and are taking defensive responses, researchers said.

Some financial advisers have argued that part of the solution lies in better integrating housing wealth into retirement planning.

Ryan Ponsford, a veteran financial adviser, said during a February webinar that isolated negative experiences for potential reverse mortgage clients have impeded the process.

“You think your job is hard because you have a product that people have a bad impression of, believe they’ve had a bad experience or have heard bad things about — most of which is untrue,” he said. “But a lot of them have had a bad experience with people in the industry.”

He estimated that roughly 33 million baby boomers who own homes — excluding the wealthiest households — could represent a potential market, with those holding $500,000 to $3 million in assets forming a “sweet spot.”

Speaking last year at the National Reverse Mortgage Lenders Association’s annual meeting, Ponsford shared similar sentiments and pointed to industry barriers that include a lack of education, reputational concerns, and the perception that reverse mortgages are a “loan of last resort,” even as millions of homeowners could potentially benefit.

Jonathan Delozier reported and wrote this article with drafting assistance from HousingWire Automation, an editorial tool that helps transform announcements and industry data into HousingWire-style news coverage.