According to MarketWatch, Denmark’s parliament approved a plan to lift its state pension age to 70 by 2040 (phasing to 68 in 2030 and 69 in 2035). That development has many Americans asking whether the U.S. should follow suit. MarketWatch

Meanwhile, the Social Security Trustees project the main retirement trust fund (OASI) will pay full benefits until 2033; after that, payroll taxes would cover about 77% of scheduled benefits unless Congress acts. Social Security+2Social Security+2

For most Americans, a home is the largest investment they’ll ever make. If future Social Security benefits are smaller than expected, is it possible to leverage housing equity to help fill the gap?

The Parkers’ “Equity Ladder” (Starting at Age 33)

Meet the Parkers  –  They start modestly, move up every ~6–7 years, and roll their equity into each new home. Assumptions are conservative and for illustrative purposes only. – approx. 3.5% annual home price growth, 6.5% 30-yr mortgage rate, standard transaction costs, and typical buyer closing costs

 

First 6 years — Starter Home (Age 33 → 39)

• Purchase: $375,000 with 10% down (loan $337,500).
• After 6 years:
  • Projected value: $460,971
  • Remaining loan: $310,721
  • Estimated net if sold: $117,982 (= 460,971 × 0.93 − 310,721)

Years 6 -12:  First Move-Up (Age 39 → 46)

• Purchase: $525,000 with 20% down (loan $420,000), rolling year 6 proceeds.
• After 12 years:
  • Projected value: $667,947
  • Remaining loan: $379,748
  • Estimated net if sold: $241,442 (= 667,947 × 0.93 − 379,748)

Years 12 + — Long-Term Home (Age 46 → 66) — 20-Year Hold

• Purchase: $800,000 with 20% down (loan $640,000).
• After 20 years:
  • Projected value: $1,591,831
  • Remaining loan: $356,258
  • Equity (while still owning): ≈ $1,235,573
• If sold at Year 20:
  • Estimated net proceeds: ≈ $1,124,145 (= 1,591,831 × 0.93 − 356,258)
  • Conservative 4% draw on net: ≈ $44,966/year (≈ $3,747/month) to help offset any Social Security shortfall.

Conclusion: Plan so Social Security Is a Bonus—Not the Plan

Whether Washington raises the retirement age or not, the takeaway is the same: housing equity can be a practical hedge against uncertainty. The Parkers’ steady, 20-year path shows how normal appreciation plus principal pay-down can produce seven-figure equity and a reliable 4% draw that meaningfully supplements Social Security.

For most families, this doesn’t require timing the market—just buying within your means, making smart improvements, and moving with purpose every few years until you land in the right long-term home. If benefits change in the 2030s, an equity cushion gives you options: age in place comfortably, downsize and invest proceeds, or tap a HELOC/reverse mortgage later.

Bottom line: Don’t wait on policy. Build a housing plan that works even if Social Security changes—and feels like a bonus if it doesn’t. Your home can be the fourth leg of retirement stability: shelter now, flexibility later.

 

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