Creative Solutions To High Retirement Housing Costs Do You Need To Reduce Your Cost Of Living For Retirement? If you are trying to make good retirement plans, or if you are already retired, you may worry about the cost of housing. That is a legitimate concern since having comfortable and affordable housing is one of the keys to having a comfortable retirement. Planning is complicated because it is hard to estimate how much these costs will rise or fall over the next several years. It is not easy to decide which solution will suit you today, and also suit you in a few decades. Can You Stay In Your Home During Retirement? If you already own a home, you may have decided to stay there. If your home mortgage is paid off, or at least mostly paid off, you probably have some strong incentives to just stay where you are. On the other hand, there are a lot more costs associated with owning a home than simply paying a mortgage. You also have to consider the cost of repairs, taxes, and homeowners policies. Even if you can estimate these costs for the next year, it is impossible to know how much these bills will cost you in the coming decades. If your home seems affordable now, you can probably put a final decision off into something changes. If you are worried that your home will not be affordable now, it may be time to find more affordable housing. Many retired people take some creative measures to lower their housing costs. They may offer unused rooms to temporary or permanent boarders. Instead of paying to heat and cool unused bedrooms, these home owners actually gain some income from space they do not really need any more. Of course, that decision may be easier if you already have friends or family members who need a place to stay. If not, it can be tougher to decide if you want to bring strangers into your home. Some houses can be easily refitted to provide private rental quarters so you do not actually have to share living space on a daily basis. You have to balance the costs against your own potential for making income in the future. Other people decide to sell their large family house in favor of owning or renting a smaller home. If the house has a good market value, and lots of equity, the money might be used to save or invest in other ways. Others keep the home, but use it as a rental property. They can earn enough rental income to pay for a move in to smaller quarters which satisfy their current needs. The right decision really depends upon the housing market in your area, your own budget, and your personal needs. It is not easy to make a housing decision if you know you should plan for a lower income, and if you do not need all of the space that your current house provides. It is a good idea to explore your options though.