Retire Without Rent

Retire Without Rent

If you want to retire without rent, you need to start planning your mortgage now. We’ve compiled some stats about retirement age incomes and developed a formula to ensure anybody can go into their golden years with equity under their belt and bills off their minds.

Retire-Without-Rent

 

Retirement age is 65. The average social security payout per month is $1,180.80. The average 401k at the time of retirement is just north of $100,000 as of 2015, meaning there’s a monthly payout of roughly $270.77. Unfortunately the average mortgage payment int he U.S. is $1,061. That’s almost the entireity of an retiree’s expected $1,451.57 monthly income.

The average age for a first time home buyer is 31, and the average income is $61,800. So if you buy a house at 31 and get a 30 year fixed rate mortgage, that still leaves you 4 years for unforeseen circumstances and major upgrades. Then you can retire at 65 with equity and no debts!

Sources for this information come from New American Funding, U.S. News, and Fool.com. Copyright 2015.

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