“How much should I save for retirement?” may be a question that has crossed your mind one way or another.
Retirement planning refers to the process of determining retirement income goals and all the decisions and actions one needs to take to meet those goals. Essentially, you’re making plans to be prepared for what life brings after your paid work ends.
Planning for retirement may be challenging for many people. For starters, you’ll need to have a retirement account. If you want to know your full retirement age, you can visit the full retirement age calculator.
One of the expenses you might find to be the most important when you retire is housing. Below, we list different ways you can pay less for housing when you retire.
Pay off your mortgage
Everyone who has to pay their mortgage knows that those are potentially the most significant bills you have to pay every month. When you don’t need to pay the mortgage anymore, you realize that paying for insurance, maintenance and taxes are just a fraction of the mortgage costs.
Choose a smaller home
When you retire and your children are grown up, there’s no need for a big, spacious house that is expensive and hard to maintain. Downsizing is an answer for you because a smaller house costs far less.
When you’re retired, there’s no need to live in an expensive part of the city just to be near your job. By that point, you’re able to consider living anywhere where you can find the lifestyle you desire. By moving away from big cities, to smaller communities, you might be able to buy a bigger, newer house for less money.
Reduce property taxes
Before relocating, you should find out whether you’re in the age group that has certain tax breaks. There are certain instances when senior homeowners who are older than the certain age or below a certain income have the right for property tax discounts in some jurisdictions.
Be a renter
When you’re retired, maintaining a house may be too much for you and the cost of living may be too expensive. Instead, you can sell your home and become a renter which could free up some cash that was tied up in your home. On the other hand, as a renter, you might be exposed to rent increases and constant moving which tends to be tiresome.
Retirees who are age 62 and older and want to stay in their current home are able to reverse mortgage to tap their home equity in order to pay the living expenses. However, you need to know that the loan becomes due if you decide to move or sell your home.
Move in with your children
If you decide to live with your adult children, you can help them with childcare and you can always be provided with eldercare if needed. By arranging this with your children in an acceptable way, everyone could benefit.
Share your living space
Consider having roommates. If you’re retired and living alone, having good company and someone to share rent or mortgage payment with could be both pleasant and helpful.
Rent a room
If you have extra bedrooms in your house, examine the possibility renting it to someone. You get the chance to earn extra money.
Sell your stuff
You probably have a lot of unnecessary things in your house you don’t need. Gather everything and try to sell them- you might earn some cash and other people will actually use things you don’t need.
Consult with your KPT Realtor
Trust the Kelly Parks Team when we say that one of the best places to retire in the world is Florida. Contact us if you have any questions regarding reducing housing costs when planning retirement. Call us today at 813-579-2816!