Housing will remain your biggest expense
Many retirees dream of paying off their mortgage so they will be free to spend money on travel and other activities. But the reality is that housing likely will remain the biggest expense in your budget for as long as you live.
Retirees in four separate age cohorts all said they spent more money on housing than anything else, according to research from the Employee Benefit Research Institute.
Some of this spending pain may be self-inflicted. A Merrill Lynch Retirement Study in partnership with Age Wave surveyed 3,000 retirees and found that 30% of those who moved during retirement purchased a larger — and presumably, more expensive — home than their previous digs.