Is It Better for Seniors to Buy or Rent Post-Retirement?

In the interests of argument, let’s just say anyone over 55 is recognized as a senior, since that’s when most of the senior special discounts start. Personally, I fit into this category, though I may feel over the hill enough to be considered a “senior citizen. ” Lately, I have found my thoughts turning to where I will live over the next few decades. So this query intrigues me. To answer this question, three things must be considered: age, lifestyle, and financial circumstances.

Age
Time isn’t everything. At 55, I’m still young adequate, and in good enough health, to work full time. Making small residence payments on a steady income could still be feasible. When retired, there may be time to make small house payments, despite having income from say Social Security, pension, and 401K income. At 70 or later, the retirement salary may have to be stretched further to cover medications, medical costs, and caregivers. There’s also home repairs and lawn proper care to consider. At some point, seniors may living in a townhouse area or renting an apartment so they don’t have to take care of these things. My parents moved into a townhome community in their 60s, after my pops retired, for this very reason.

Finances
Let’s face that, even with social security, a retirement account, and a type of pension for income, the money will only stretch so far. You have to reside on the same amount of income for the rest of your life, even though the medical expenditures, the rent payment or maintenance fees, and the monthly bills rise. When my parents moved into their townhouse, they were able to pay it back with the money they got from the sale of their prior home, then sock away the rest for a rainy day time. Now, in their 80s, with my dad’s health declining, they’re wondering how they would have made it with a house repayment or a rental payment. They can still make it on their existing fixed income, at least for now. Seniors need to do some significant thinking about how far they will be able to spread that fixed profits over the next 20 to 40 years of steadily raising bills. Will you be able to afford a house payment, acheter ou louer, or perhaps will you have to move in with family?

Lifestyle
It’s not merely your current lifestyle, but the lifestyle you’re looking forward to in your later years. One other reason my parents chose to move into a townhouse online community, was that their previous house was over a few, 000 square feet, with 4 bedrooms and a bathroom. It absolutely was way too much house for the two of them. Their current townhouse is around 1, 200 square feet. It fits their life-style much better. Another thing to consider is whether you want to travel after retirement living. Will a house payment or rent allow you to travel. When there’s a way to move into a smaller house, just right for the couple – or one, if you’re no longer married – and also pay off the house, will that free up some money to do a tiny traveling? It did for my parents when they first upon the market to their townhouse.