Homeownership remains vital for many retirees, but rising costs such as property taxes and maintenance strain budgets. With an assumed retirement savings goal of $1.26 million, many fall short, making it critical to budget carefully for housing. Experts recommend that retirees aim to keep housing costs under 20% of net income, ideally having no mortgage. This strategy is essential to manage the financial transition from earning a variable salary to living on a fixed income, ensuring sufficient funds for other necessities.
In retirement, it would be best if your primary home is paid off-no mortgage. You then would only have taxes and carrying costs.
Nearly 80% of people over 60 own their homes, but rising costs are making it harder for retirees to afford staying in them.
Budgeting for homeownership in retirement requires a clear-eyed look at what your home will cost year over year and its impact on financial health.
In retirement, your housing costs should ideally stay below 20% of your net income, keeping room for health care, food, and unexpected expenses.
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