Renting When Retired-Ultimate Guide To Enjoy Retirement In 2024

Renting when retired gives you flexibility, convenience, and liquidity while saving you a lot on mortgage payments, property insurance, property tax, and maintenance cost. 

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Owning a home in retirement might seem a better option to most than renting when retired. However, retirement brings both lifestyle and financial changes. Because in retirement you won’t be earning and won’t be considered credit-worthy as well. 

So,  renting in retirement might be a better option for many. Don’t just take my word for it. Because in this post, I will provide an in-depth overview of Renting When Retired along with its pros cons, and many more related queries. So, stay with me till the end. 

Let’s start with what percentage of retirees are renting in America. 

Find Out Can You Rent In Retirement?

What Percentage Of Retirees Rent?

According to a recent survey of GoBankingRate

Around 60 percent of retirement-age people are currently renting in America 

So, more than half of retirees are renting and the numbers are increasing day by day. Though rent is also increasing. However, renting is still a better option for retirees who do not have sufficient retirement savings or want more flexibility in retirement. 

Now, let’s find the reasons why renting might be a better option. 

Reasons To Rent When Retired

Renting When Retired

Here are some of the reasons why renting on a pension makes more sense for many 


Retirement brings much uncertainty. Your investments may go down, you might face a sudden healthcare emergency, you might outlive your savings, and many more. In this uncertain period, your earrings will also decrease. Moreover, lenders will not consider you creditworthy as well. 

So, having access to liquidity might save you a lot of hardships. And renting gives you more liquidity in retirement than owning a house. 

Saving On Property Costs 

Owning a property comes with a lot of responsibility and cost as well. Because you have to pay 

  • Ever-growing Homeowner’s Insurance., 
  • Property Taxes
  • Maintenance and Repair Costs
  • Mortgage Payments 
  • Homeowners Association Fees

These are just a glimpse of the cost. There can be many more costs associated with your property. So renting can save you from all these costs. 

More Freedom 

Retirement is the perfect time to focus on yourself and fulfilling your needs. But with a property to maintain, you might not get enough time for yourself. As with a property you need to mow the lawn, fix leaks, replace broken appliances, and many more. 

With a property to maintain, you can’t even travel for a long time. As there is always a fear that something might happen in your absence. Moreover, there is the stress of devaluing property value. So, if you rent you can get rid of all this stress and get more freedom for yourself. 


Renting when retired gives you the most flexibility. Because you can choose to live in any location you want. You can choose a condo, apartment, or even a house. You also have the flexibility to choose how much rent you should pay. Moreover, you can downsize or even get a bigger space if you want.  

On the other hand, it gives you the freedom to travel wherever you want without even worrying about your property. 


Renting also gives you convenience. Because you can move near to a place where you can get groceries and all the necessaries in walking distance. You can even decide to live close to your relatives and children if you want. 

Furthermore, many rental properties offer amenities such as swimming pools, fitness centers, and community events. These can definitely enhance your retirement lifestyle. 

Also, Check How do you prove income if you are retired?

These are some of the most notable reasons why you should rent in retirement. But how much rent can you afford on retirement?

How Much Rent Can I Afford In Retirement

Actually, it depends on your financial situation. However, a financially healthy rent should be less than 30% of your monthly retirement income. 

It’s hard to decide how much rent you should be paying, especially in retirement. But if you carefully consider a few things then it’s quite simple. You just need to consider 

  • Your Retirement Income
  • Your Monthly Budget 
  • Living Costs 
  • Financial Goals 

If you consider the above things, you will find out how much rent you should be paying in retirement. However, it is suggested to keep the rent below 30% of your total after-tax income.  

Pros And Cons Of Renting Versus Owning In Retirement

Instead of talking only about renting in retirement, I am also providing the advantages and disadvantages of owning a home. Because it will help you to have a good understanding of both. 

Pros Of Renting Vs Owning In Retirement

Renting When RetiredOwning A Home
Flexibility More security and a sense of stability 
More access to liquidity Chances of building High Equity in your property
Little or no cost of property taxes and maintenance. Tax deductions
Less responsibility more freedomThe scope of additional retirement income by selling equity or renting a part of the property
Freedom of travel, more time for yourself, and less stress. More Control. 

Cons Of Renting Vs Owning In Retirement

Renting When RetiredOwning A Home
Rent might increase.  More costs on maintenance, insurance, tax, and mortgage payments. 
Less control over the home you will be living in. Less liquidity. 
No Tax deductions. More responsibility and less freedom. 

So, now we know about the advantages and disadvantages of both of them. 

Do Living Expenses Go Down In Retirement?

Yes, living expenses in retirement go down. According to a Trans America Center research, 

Retirement Household spending is almost 25% less than regular households. 

The reason behind fewer costs can be less gas or commuting fees, lees outings, fewer dine-outs, and of course fewer costs on booze. 

Can You Retire Without Owning A House?

Of course, you can retire without owning a house. You don’t need to own a house to get retired. You just need retirement savings and proper planning. 

However, owning a house gives you more access to capital and a sense of stability than not owning one. It is the only major advantage you get if you own a house in retirement.  

Should I Sell My House And Rent When I Retire? 

It depends on your retirement goals and retirement savings. 

In case you have enough retirement savings, high equity in your house, and do not plan to travel or move much then selling your house makes no sense. Moreover, if you need access to liquidity then you can always sell some equity in your house.

On the other hand, if you haven’t saved up much for retirement, then you can fund your retirement by tapping into your home equity. You can also decide to sell when

  • You have low equity in your house, and 
  • Want to travel or move a lot.
  • Want to be near your children or relatives 
  • Need downsizing or enjoy a home that better suits your current needs

Moreover, living in a big house alone or with your partner during retirement can get monotonous. So, you going near a better community with more facilities for a retirement lifestyle.  

In Summary

Your retirement is a sensitive time. So, it’s better to enjoy it to the fullest. Renting when retired gives you the freedom to enjoy this part of life. However, renting has downsides too and might not be suitable for all. But if you have less retirement savings then renting can be a good option for you.

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