If I choose never to buy a home-- what will happen when I retire? See Details.?
Will pension and social security be enough to keep paying my rent?
Public Comments
- Honestly, that depends on how well you plan and save. You live in the us and have a pension? Lucky YOU.
- Only if you plan really, really well. Put it this way, most people buy a house as their primary pension fund.
- How much will your pension and other things be? how much is the rent? My God my dear More Detail Please.
- Most jobs aren't offering pensions anymore and social security can't be counted on. If you don't own your own home, imo, retirement savings are even more important.
- OK let me tell you a secret. As much money as you put towards rent, THAT would be about the same as your mortgage payments. Why not put your rent money towards purchasing a house. If you don't own a home while your retired, nothing will happen.... you'd just be paying more bills then you would if you had owned your own home..
- Odd question. Well first of all if you can even find a job that has a pension that would be a miracle in itself. Second of all, as you know by now, buying a house doesn't mean "jack". House value's can go down, down, down and therefore you won't have anything anyway. I for one will never buy another house unless I have the cash and absolutely no mortgage. Buying a house is no longer a sound investment. You're best bet is to concentrate on your IRA's and any other retirement funds you may have started.
- Only you can answer that because you should get a report quarterly from Social Security as to how much you will get when you retire and it tells you age by age. Also, whatever your pension will be is something only you know of the amount you'll be receiving. Do the math and see if the home is affordable at that time in your life.
- That all depends on your pension. With the housing market crashing in the US--there are only a few choice towns across our country where the face value of your house has not depreciated to less than you paid, putting the money you would have spent on what would be considered a risky investment in today's housing market, into a good diversified pension would definitely be safer than buying a home. So yes, you should be set.
- There is some algebra that could be used to figure out this problem. But the smartest thing to do today is not to fully retire... If your going to retire, you should still have some sort of working income, even if its on a small scale. I say this because statistics show that full retirement is very unhealthy
- With rent as high as it is now, I don't see how a person could live in an apartment. Fortunately, I paid the last payment on my home the year I retired. Even though my Social Security Benefits and retirement annuity is fairly good, I know I couldn't afford an apartment.
- That can't be answered without knowing what your pension and social security income will be. Personally I wouldn't count on either, especially the later. And I assume you are thinking of either having the house paid off at retirement or at least knowing what your payment will be since you'd have a fixed rate mortgage. You would have to try to find historical data for rental rates (in your area) and compare them to increases in social security. But that doesn't help much since that fixed income could be eaten up by all kinds of other rising costs even if it looks like increases meet or exceed rental costs. The easiest thing to do, though I hate to recommend planning on anecdotes, is to ask retired people who are renting now how they are getting along. Regardless of the answer I wouldn't let it sway you one way or the other in your choice of buying a home without knowing if the problems or benefits of renting while retired outweigh the benefits of owning for all the other years of your life. Actually there has got to be data on this somewhere. There are plenty of people who will never buy a house in some areas. Somebody must be looking at them vs home owners.
- a pension and social security aren't enough whether or ot you own your home.
