You Could Overspend on Housing

According to the Chicago Tribune, a survey by American Financing found that 44% of Americans between ages 60 and 70 have a mortgage when they retire. This kind of cost can easily create some discouragement as every retiree’s dream is to travel more and have a carefree retirement. In fact, as long as you live, housing will be one of the biggest expenses in your budget.

In 2020, the federal data on consumer spending showed that U.S. retired households spend $47,579 a year, on average, compared to the average across all households which was $61,334. Making a hefty mortgage payment each month can be a cause of stress, especially for people on a fixed income.

And there are other costs like utilities and maintenance ones as well. Financial advisors recommend downsizing if you find yourself spending way too much money on housing.