Most Retirees Own Their Homes Outright, But Is It Always the Best Move?

A new analysis of Federal Reserve data reveals that many retirees in the US own their homes outright. According to the Survey of Consumer Finances, homeownership peaks around retirement age, with about eight in ten Americans owning a home in their mid-60s to mid-70s.

Of those retiree homeowners, about 73% are mortgage-free by their late 60s, rising to over 90% by their mid-80s. This is largely due to the fact that many mortgages are structured over 30 years, giving homeowners time to pay down their loans.

However, experts warn that paying off a mortgage isn't always the smartest move in retirement. It depends on individual circumstances and whether it's better to keep the loan at a low interest rate than tying up cash in paying it off.