For many people, retirement planning is one of the main reasons for buying property. But this supposed safety net can become a cost trap in retirement.
Pay off your mortgage every month while you are working, but then live rent-free and worry-free in retirement – this is how real estate becomes your retirement provision. The idea behind it: rent and heating costs are the biggest monthly costs for many households, and at the same time, a sufficient pension is anything but certain. So if you don’t have to pay rent in old age, you have more financial flexibility – right?
Source: Stern
