Ask the Money Lady: Renting in retirement

 In Opinion

Dear Money Lady,

I’ve owned a home throughout my whole adult life, and now that I’m in retirement I’m wondering if it’s worth keeping it. I still have a mortgage and I have had to always refinance my mortgage to consolidate debt in order to keep my house. Now that the interest rates are so high, I don’t think I can afford to do that anymore. Is it bad to consider renting in retirement?


Dear Nadine,

You are right to wonder whether home ownership is necessary in retirement.

As we age, we may not be able to keep our children’s family home. It is more important to secure our futures and downsize our responsibilities, especially our debt burdens.

To answer your question, is renting a bad thing in retirement? The answer is maybe not.

Many people now retiring may want to downsize or move to something more suitable with lower expenses and less chores. Some may even want to retire to a completely different place. Somewhere that will enrich their new retirement lifestyle.

We all know that it is great to own your home if you can afford it, but whether you stay in your family home or plan to downsize into something new, this must be done without any debt such as a mortgage or line of credit. And of course, owning a home comes with many other expenses such as property taxes, insurance, repairs, improvements and the continuous maintenance. If these expenses are ones that can fit into your new budget than I would encourage you to own a home in retirement. It will continuously go up in value and can be sold many years later if needed to fund any assisted living arrangement. It can be viewed as an investment asset, but also as your plan for long-term-care.

What if you can’t afford to buy after selling your home and paying off all your debt?

Perhaps you need the sale proceeds to supplement your retirement and even though you would like to buy, you know it would be better to rent to keep your costs contained. Remember that shelter is a necessity of life; and yes, I know you are not building equity year over year when you rent; but you also do not have the associated homeowner costs, headaches and decisions to attend to with property ownership. You literally can be as free as a bird. You are only responsible for the rent every month and can now do or go anywhere you wish without the burden of looking after a property.

People say that you can only get an emotional connection to a home if you own it, and I would disagree.

My grandmother lived in the same home for over 48 years and never owned it. She could never afford home ownership and always rented. I was very emotionally attached to her home – because she was in it. Remember that “home” is where you are, where your family is, and how you make every day special for you and the ones you love.

Whether you rent or own, make sure you are debt free and have a long-lasting income to maintain your lifestyle.

Good Luck and Best Wishes,

Money Lady

Christine Ibbotson is an author, finance writer, national radio host, and is now on CTV Morning Live, and CTV News. Send your money questions through her website at

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