Should You Sell Your Home When You Retire?.
By MP Dunleavey, Next Avenue Contributor Deciding whether to sell your home when you retire is a complicated question for most people.
But given that many nearing retirement have a savings shortfall, and historically low interest rates aren’t helping that money grow, it’s wise to consider the financial side of this equation as well, says Mari Adam, a Certified Financial Planner and president of of Adam Financial Associates in Boca Raton, Fla. “You have to look at the mechanics of the situation,” she says.
Moving might lower your cost of living, but don’t assume it will, says Hopkins.
“Get out there and look around, so you know what the prices are today,” Adam advises.
Not only would most people prefer to remain in their current home when they retire, a big draw is keeping their social network, the Nielsen study found.
The cost of remaining in your home might be high, but many people are willing to pay the price if it helps them maintain those key relationships in retirement.
Although most retirees want to age in place, only 14% would consider using a reverse mortgage as a way to remain in their homes, according to The American College survey.
But it’s also possible that a reverse mortgage can provide you with income and allow you to stay put.
“Starting in your mid-50s, say five to seven years out, this choice should be factored into your financial plan,” Hopkins says.