Most Americans plan to own homes in retirement, but that might be a mistake
We all have our own respective visions of what life in retirement will look like. For the bulk of Americans, however, that means owning a home. In fact, 85% of current workers say they plan to own during their golden years, according to new data from Voya Financial, while 79% of current retirees are property owners. But while owning during retirement has its benefits, there’s one major drawback to also be aware of.
Why own during retirement?
There are several good reasons to own a home during retirement. For one thing, ownership still offers a host of tax breaks, such as the mortgage interest and property tax deduction, which is currently capped but very much still in play. Additionally, owning a home gives you a potential source of equity you can use to your advantage later in life. If cash flow becomes an issue, for example, you can get a reverse mortgage (though proceed with caution before you do) or home equity line of credit to buy yourself more options for paying the bills. And that’s something renters can’t do.
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