What does ChatGPT say about housing wealth in retirement?

With the emerging growth of AI, and our increasing confidence and accuracy in it as a reliable source if intelligence, we thought we’d query about the use cases and role of housing wealth in retirement.  For this initial example, we used ChatGPT 4.0 and asked a very simple question:

“Should housing wealth be included in a retirement plan?”

Here’s the response:

Yes — housing wealth absolutely should be considered in a retirement plan.

Here’s why (with a friendly, fact-based breakdown):

What is "housing wealth"?

It’s the equity in your home — the current market value of the home minus any mortgage balance. For many people, it's their single largest asset.

💡 Why include it in retirement planning?

1. It’s real wealth
   The average American age 65+ has more equity in their home than in their retirement accounts. Ignoring that is like planning a road trip and pretending your gas tank doesn’t exist.
2. It provides flexibility
   Housing wealth can be tapped through downsizing, renting out a room, taking a home equity loan, or using tools like a Home Equity Conversion Mortgage (HECM). These can reduce portfolio withdrawals or delay Social Security, improving long-term sustainability.
3. It can serve as a buffer asset
   Research (e.g. Pfau & Salter, Journal of Financial Planning, 2012) shows that strategically using home equity during down markets — instead of selling off investments — can increase the chances your portfolio lasts through retirement.
4. It helps mitigate risks
   Rising healthcare costs, market volatility, and longer lifespans can derail retirement plans. Housing wealth can serve as a contingency fund to protect against those risks.
5. It may enhance legacy or gifting goals
   By including housing in the plan, you can be more intentional about what happens to the property — whether it’s passed down, sold, or used to support causes you care about.

🤔 Why is it often overlooked?

• Many advisors weren’t trained to include home equity in planning.
• There’s a stigma or misunderstanding around using home equity, especially reverse mortgages.
• People view their home as a sacred cow (“I’ll never touch that!”) rather than a financial asset.

Summary

Confidence level: High
Housing wealth is a legitimate, often underutilized component of retirement planning. It doesn’t have to be used, but it should always be considered. Ignoring it can lead to suboptimal outcomes or unnecessary financial stress in later years.

So says ChatGPT!

If you’re an advisor, it’s a very low barrier to become informed.  We offer content and courses that will get you up to speed in less time than it took you to scroll useless news headlines this morning.  You owe it to your clients.  You owe it to yourself.  Become informed.  Spend some time with ChatGPT, reach out to us, one way or another, meet the expectations of your clients.