5 Responses to “How do you pay your mortgage or rent when you retire?”

1. Sherri S says:

   December 9, 2009 at 3:55 pm

   The goal for most people is to have their house paid for BEFORE they retire. Remember that your kids will be grown and you will probably have very limited income.
   Otherwise though you may retire from your main employer you may have to continue to work to pay off your home.
   The best thing is to make sure you pay it off before you retire.
   In the US, we pay rentals out of our Social Security Payments we get each month. It is better if you own, then you can pay it off and only have to pay taxes and insurance.
   Most people I know have down sized when they retire.
   In the US we are allowed to take a one time capital gains write off and not pay taxes when we sell.
   So lets say I sell my home for 200,000 and I only paid 110,000 35 years ago, that difference is my gain. So I can keep that money one time, and not pay taxes on it.
   and buy something for way less money that is smaller and not have any payments, and keep the remainder in savings.
   Let say my husband dies and I do the above, if I remarry, and my 2nd husband dies I can’t do it again, lets say though he hasn’t done it yet, then he can still sell his home and take that one time write off for himself.

   I
2. Mrs. Deloera says:

   December 13, 2009 at 3:28 am

   maybe this web site can tell you he helps tell yous how much you need when you retire and everything
3. Laissez-Faire Guy says:

   December 14, 2009 at 5:36 pm

   I don’t know what sort of pension system the UK has, but retirementliving expenses of all sorts are usually paid out of 3 sources here in the USA.

   1. Social Security
   2. Company pension plans
   3. Retirement savings
4. Judy says:

   December 18, 2009 at 1:59 am

   google retirement calculator
   fidelity.com and schwab.com have excellent ones
5. froggyherts says:

   December 18, 2009 at 8:15 am

   Hi, in the UK, you will actually get a very small state pension - if you are 28 now, let’s face it, it will hardly be worth anything by the time you retire (I’m 35 and not counting on the state either). I doubt it will be enough to cover bills, let alone food and housing.

   What you need to do in the very near future is start a private pension - it could be with your employer if you work (usually better as they often contribute a little for you, my employer does), or it could be a personal one. If you can, go and see an independent financial adviser to help you choose the right product as there are just so many out there.

   But you can’t just rely on that either, as some pension funds have done badly in the past, so you also need to do some long term savings - an ISA is a good start, and you can put up to £3600 cash each year.
   Once you have saved enough, you may want to invest it in a property - I know it looks impossible for the moment, but remember that prices are coming down and you are still very young - if you save for a deposit for the next 7 years, you can then take a 25 years mortgage and it will be paid off when you are 60 - ready for retirement!

   If you haven’t finished paying your mortgage, you can do like a lot of elderly people and downsize to a cheaper property, so you are debt free. And if you haven’t bought a place by then, your savings will bring you a nice little income and you’ll use that with your private pension and your state one to pay for everything…

   Basically as long as you plan now and put enough aside (and don’t touch it for any reason!), you’ll be fine… Just don’t count on the state or others to look after you as you can see all around you how badly older people are treated.
   Good luck