# 67% Older Homeowners Fear Inflation, Reverse Mortgage Avoids Medicare Surcharge

> Reverse mortgage cash won't raise Medicare premiums for 67% of older homeowners worried about inflation.
- Title: 67% Older Homeowners Fear Inflation, Reverse Mortgage Avoids…
- Summary: Reverse mortgage cash won't raise Medicare premiums for 67% of older homeowners worried about inflation. Linda's $80,000 reverse mortgage draw won't…
- Keywords: reverse mortgage, medicare premiums, inflation, home equity, medicare surcharge, social security, ira withdrawals, homeowners, Older, Fear, Reverse, Mortgage
- Source: 24/7 Wall St. — https://247wallst.com/personal-finance/2026/10/21/67-of-older-homeowners-worry-about-inflation-her-80000-reverse-mortgage-draw-wont-automatically-raise-medicare-premiums
- Author: Gerelyn Terzo
- Published: 2026-10-21T16:00:13+00:00
- Read time: 1 min
- Topics: reverse mortgage, medicare premiums, inflation, home equity, medicare surcharge, social security, ira withdrawals, homeowners
## Inflation Worries Older Homeowners
67% of older homeowners named inflation as their top financial concern in a 2026 survey.

> 67% named inflation and the rising cost of living as a major financial concern
## Linda's Reverse Mortgage Plan
Linda, 68, plans to draw $80,000 from her home equity to cover rising bills.

> She plans to draw $80,000 of home equity through a reverse mortgage
## Medicare Premium Misconception
Linda assumes reverse mortgage cash will increase her Medicare premiums two years later.

> She assumes Medicare will treat that cash like an IRA withdrawal and raise her premiums two years from now
## Reverse Mortgage Avoids Medicare Surcharge
Reverse mortgage proceeds stay off Medicare's adjusted gross income, so premiums won't rise.

> The amount you receive isn't taxable. The draw never shows up in adjusted gross income
## Traditional IRA Withdrawals Raise Premiums
Traditional IRA withdrawals increase Medicare premiums two years later by adding to adjusted gross income.

> Withdraw the same amount from a traditional IRA funded entirely with pretax dollars and every dollar lands in AGI
## Two-Year Premium Calculation
Medicare uses income from two years prior to calculate premiums, so recent withdrawals affect future costs.

> For Medicare surcharges, Social Security uses adjusted gross income plus tax-exempt interest, generally from the return two years before the premium year
## Reverse Mortgage Costs Still Apply
Reverse mortgages add debt with interest, fees, and potential property tax consequences.

> A reverse mortgage adds debt against the house. The U.S. Department of Housing and Urban Development's housing counseling handbook says interest accrues on the money she receives
## Key takeaway

Linda's $80,000 reverse mortgage draw won't automatically increase Medicare premiums two years later.