When you think of your future as a retired older adult, I would guess you envision a life of financial security… allowing time to work in the yard and having fun with grandchildren. One of the most important means of achieving financial security to have your home paid off. Most people don’t consider individuals over 70 still making mortgage payments. The reality is, that most individuals don’t buckle down over the years and pay off their mortgage. Most individuals choose to: buy that new car, take a vacation, or (what I’m guilty of) buy the expensive coffees. It is much harder to buckle down and make a few extra payments on your house in order to have it payed off.
We actually have friends who at about 33 years old payed off their $150,000 house (on just the father’s income). They did this by being conservative with with their life-style. No one considers a future as an older adult where you get a letter in the mail about the foreclosure of the house you’ve lived in for 20 years.. Unfortunately, this is occurring to many older Americans (especially African Americans and Hispanics). Certainly, this creates great stress for older adults, as they must go back to work or find other solutions. This is disheartening. For more on this topic, see the article above.