Core Insights - Retirement poses financial challenges, especially when Social Security constitutes a significant portion of income, necessitating current spending cuts to ensure quality of life later on [1] Housing Costs - Housing costs are the largest expense for retirees, accounting for approximately 36% of spending for Americans aged 65 and older [3] - In 2023, over a third (34%) of older households were cost burdened, spending more than 30% of their income on housing [3] - The average retiree household spends $21,445 annually on housing, which breaks down to about $1,787 monthly [4] Mortgage Burden - 43% of older homeowners with mortgages are cost burdened, compared to 19% of those who own their homes outright [4] - Reducing or eliminating mortgage payments can help retirees save for increasing healthcare costs, which are estimated to average $172,500 for a 65-year-old retiring in 2023 [5] Downsizing Benefits - Downsizing to a less expensive home can lead to reduced mortgage payments and lower maintenance costs, which are significant unexpected expenses for retirees [6] - Research indicates that individuals aged 60 to 69 have the highest potential to unlock home equity through relocation, providing additional retirement savings [7]