Aging in place means remaining in your home well into retirement as long as you’re physically able. An AARP survey reveals that more than 70% of people age 50 and over plan to stay in their home during their retirement. Meanwhile, a HUD study puts that number at over 80%. With numbers this high, it’s safe to say a majority of federal workers are likely planning to age in place. Before you decide, consider the pros and cons.
Consider The Cost Of Maintenance & Upgrades
Keep in mind, the older your home may be, the more likely it will need upgrades and maintenance in the coming years. Eventually, you may need to replace your roof, HVAC system, appliances and flooring. These big ticket items can take a big bite out of your TSP nest egg if you fail to plan for them in advance. Purchasing a smaller home may better suit your needs as you age and can help lower your property taxes and other expenses like utilities and homeowners insurance.
“When you run the numbers, building home equity makes sense because it leads to a higher profit when you do decide to sell.”
Your Home Can Appreciate In Value
You could consider remaining in your home during the first stage of your retirement to build up more equity. In fact, the current national average home appreciation rate is 14.5% year over year. When you run the numbers, building home equity makes sense because it leads to a higher profit when you do decide to sell. If this strategy works for you, consider making upgrades to your home while you’re still working to add even more value.
Beyond Money: Mental & Emotional Advantages
As the saying goes, “home is where the heart is.” Remaining in your home and community can provide a sense comfort, security and self esteem. Especially when you live close to family and friends. For many people, the emotional value of staying in your home when you retire is just as important as the monetary value.
