FYI: Downsizing is a common feature of retirement planning. But two trends could throw a wrench into that: First, more older Americans are carrying debt, typically mortgages, into retirement. Exacerbating this are housing trends that could pose a problem for baby boomers looking to sell large, suburban homes to pay off their mortgage and shore up retirement savings.
Baby boomers are clearly more comfortable holding debt than the prior generation, which sought to pay everything off before retiring, says J. Michael Collins, faculty director of the Center for Financial Security at the University of Wisconsin. About 70% of 65- to 74-year-olds held some debt in 2016, up from 52% in 1998; among those 75 or older, almost half had debt, double the ’98 level, according to the Employee Benefit Research Institute.
Regards,
Ted
https://www.barrons.com/articles/if-youre-counting-on-your-house-to-finance-your-retirement-you-may-be-walking-into-a-trap-51553790630?mod=past_editions
