I’m 64 and want to retire — but with a $185K mortgage, I’m terrified my nest egg won’t last. What to do ASAP

Core Insights - The traditional view of retirement assumes that expenses will decrease significantly, but this is increasingly challenged by the reality of housing debt and rising costs for many retirees [1][3]. Group 1: Retirement Challenges - A growing number of older Americans are entering retirement with housing debt, higher insurance costs, and uncertainties regarding healthcare and inflation, making the assumption that retirement will be cheaper than working life less reliable [3]. - The case of a hypothetical retiree, Tom, illustrates the financial strain of carrying a mortgage into retirement, with a monthly payment of $1,650 consuming a significant portion of his expected income [2][7]. Group 2: Economic Realities of Mortgages - Carrying a mortgage into retirement, once seen as a failure of planning, is now viewed as an economic reality due to various factors such as refinancing during low-rate periods and unexpected life events [4]. - For some retirees, maintaining a mortgage can be financially sensible if the interest rate is low and investment returns exceed mortgage costs, allowing for better liquidity [5]. Group 3: Financial Implications - The fixed nature of mortgage payments poses a risk for retirees as their income shifts from wages to Social Security and withdrawals from savings, potentially leading to accelerated portfolio depletion [6][7].