Living Well on Social Security in Mortgage-Free States: How It Can Be Done

"As retirees aim for financial stability in retirement, the traditional belief that paying off a mortgage ensures a comfortable life on Social Security benefits alone is being challenged by rising homeownership costs. The analysis reveals that Social Security is sufficient to cover living expenses in only 10 states, leaving many retirees facing significant shortfalls, even without a mortgage. The following key takeaways shed light on this complex issue:"

"Rising homeownership costs have increased by 26% in the past five years, impacting retirees' financial stability even without a mortgage. Social Security benefits are only enough to cover living expenses in 10 states, with a national average annual shortfall of approximately $2,762, emphasizing the importance of understanding the gap between expenses and benefits. Housing costs, excluding a mortgage, significantly contribute to the financial challenges for retirees, with utilities, property taxes, and home insurance witnessing substantial increases in recent years."

Homeownership costs have risen sharply, increasing 26% over five years and undermining retiree financial stability even when mortgages are paid off. Social Security benefits are sufficient to cover living expenses in only 10 states, producing a national average annual shortfall around $2,762 for retirees. Non-mortgage housing expenses — including utilities, property taxes, and home insurance — have climbed substantially and account for a large portion of retirement budget gaps. Geographic variation in costs determines whether benefits suffice, and relying solely on paying off a mortgage no longer guarantees comfortable retirement living on Social Security alone.

Read at SFGATE