What’s the best part about retirement? Doing whatever you want! 😎 Wake up as late as you want and throw that alarm right in the garbage. ⏰🚮 Live it up, boss.
To really live retirement life to the fullest, you’re going to need enough funds to do so. Rising home costs could throw a wrench into your retirement plans. 🏘️ It pays to be prepared!
Here’s Five Fast Facts on home prices and retirement:
- 🏡 Home Run - Over the last decade, home prices have just about doubled. Rising insurance rates and property taxes also come with rising home prices, putting a big strain on family finances. Baby Boomers close to retirement may have to dip into their savings to cover costs and delay their plans.
- 📈 Too Damn High - Out of all the generations, Boomers are the least likely to be able to afford their current home if they had to buy it again today. In a recent survey, 45% of Boomers said they wouldn’t be able to purchase a similar home in their neighborhood today, compared to 39% of Gen X and 24% of Gen Z and Millennials.
- 💰 Premium Pains - Rising home prices can impact how much you pay in home insurance premiums. Depending on where you live, bad weather can jack the costs up even more (hello, hurricanes). While most retirees spend between 6% and 10% of their income on home insurance, retirees in Florida have reported paying up to a whopping 34%!
- ⬆️ Tax Facts - Property taxes also increase as home prices increase. Even if you locked into a competitive mortgage rate, a jump in your home value means a higher tax bill. If you’re a retiree on a fixed income, this could spell trouble, especially if you didn’t account for these added costs in your retirement savings plan.
- 🚚 It’s Goin’ Down - To fight back against these rising costs, many retirees are considering downsizing to a smaller home or moving to a more affordable neighborhood. Another win: smaller homes mean smaller utility bills. The extra cash from a home sale can also be used to build back any lost retirement savings.
🔥Bottom line: Are money fears keeping you up at night? You’re not the only one. Many Americans have financial worries and the good news is that you can kick them to the curb. Check out this article for our tips.
Have rising home costs impacted your retirement plans?
Let us know by connecting with us on Facebook and Instagram! Also, remember to share this newsletter with your friends & coworkers!
Btw, If you’ve read this far and haven’t yet signed up for the weekly Paycheckology newsletter, CLICK HERE!
