Dive Brief:
-
Americans pay more for housing than for health care, according to the nonprofit Employee Benefits Research Institute.
-
Mortgages and home-related expenses like maintenance, utility bills and property insurance account for 40% to 45% of the average retiree’s household budget. As the homeowner ages, those expenses diminish slightly; still, EBRI advises retirees to put away about $250,000 at age 65 to cover 20 years’ worth of household expenses.
-
About 29% of retirees age 65 or older are still paying a mortgage.
Dive Insight:
Financial planners often advise retirees to downsize to smaller homes with lower taxes and utility bills, or to move to a region of the country where the cost of living and real estate taxes are lower.