Retirement brings new financial challenges, especially when social security Modify all or most of your income. To ensure a good quality of life at a later time, it is necessary to reduce spending now.
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But where is the best place to start? Housing. By eliminating or reducing mortgage payments and costs of other homes Retired people can finance a better lifestyle as they get older.
Housing costs are the largest expenses for retirees. It reaches about 25 % of spending for Americans 65 years and over. For 40 % of the oldest homeowners who still have a mortgage, this percentage is usually much higher, according to a report of A joint center for housing studies at Harvard University.
In 2023, retired mortgage owners had the average monthly housing costs of about 1800 dollars compared to homeowners who did not represent real estate loans, who paid about $ 600, and the tenants, with average monthly housing costs about $ 1,000. This is why it is logical for retirees and retirees soon to reduce the size of their homes, or even think about moving to the lower -cost areas.
By reducing or eliminating Real estate mortgage paymentsThose who have a fixed income for expenses that are likely to increase with age can provide health care costs. Fidelity estimates that the average annual health care spending is almost doubled for individuals between the ages of 55 and 75 and that retired couple exceeds 65 years will spend $ 300,000 on health care throughout the retirement period.
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Not only does it have a cheapest house in reducing mortgage payments, but it also means less maintenance on maintenance. Home repairs are the expected most unexpected retirees expenses, according to The Association of AktariansAlthough this financial surprise can be mitigated by having a less maintenance house.
Reducing the size of a cheaper house It can also be translated into more pension savings. according to Research by the vanguardThose between the ages of 60 and 69 have the highest capabilities to cancel home shares through transportation, which can be used to inject more money into a retirement nest egg – a useful source of criticism for those who have limited income.
Smart transport can also mean mitigating other major expenses that can eat social security profits. For example, moving to somewhere with access to public transport can eliminate the need to own a car – another large account for retirees. The American Automobile Association puts the annual estimate of having a car with more than $ 12,000 – which are expensive for half of Americans who depend mainly on social security.
