Yes, it’s about taxes and when you sell off assets for living expenses, you deal wisely or unwisely with your decisions. The government wants your money now.
Using home equity to subsidize lagging income in retirement avoids those issues. Cash from home equity is not taxed, and you can spend it on anything you choose.
Use home equity assets to pay off debts. The resulting positive double whammy of reduced monthly payments, pour relief into your budget without tax consequences.
Take another look at your home equity assets while you can.
Talk to your tax guy/gal first. Yes, you can talk to me about it. OK?