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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Why does everyone assume they have to pay their mortgage off before retiring?[/quote]

I don't think people assume you have to, but it is desirable for most of us. For instance, in our case, retirement plan is structured around a government pension which will be worth about 65k/yr. Our goal is to fit all our ordinary expenses, including healthcare, within that pension, giving us far more leeway with our remaining retirement dollars (between 1.5 and 2m in various accounts). If we don't have a mortgage, that's really easy, and we can do it without even having to budget that carefully. This allows us to use the remaining funds for travel, gifts to kids, bucket list hobbies and expenditures.

If we have a mortgage, we just have to do a lot more budgeting about how we structure retirement. I don't want to. I want to enter retirement [b]without debt or saving obligations[/b]. That's the whole point of retirement to me. Otherwise I should probably keep working until those obligations are taken care of.[/quote]

DP: In my view, tax and insurance portions of the mortgage start to eclipse the principal mortgage with inflation so it's not really all that different to budget to cover the full PITI--just the same autopay.  I easily have enough money to pay off my mortgage, but I refinanced when rates were sub-2.5% and I will let that stay through its full term--which includes the first 10 years of my retirement. I have a pot of money earning more than the interest on the mortgage on autopay for it so I don't even have to think about it. If ever the calculus changes, I could pay it off in full.  I won't consider it part of my retirement budget from my larger portfolio because I just set aside the pot of money needed for the mortgage--just let the pot of money pay it off and then I get to keep the extra I earned as a bonus.  I like liquidity and higher earnings, even in retirement.[/quote]

Same here.. We pay about $3K/month towards a mortgage that will end in about 20 years (when I'm 77, well into retirement).  That's just another budget line item for me.  If I didn't have the mortgage, I'd still be paying $1,200 in taxes/insurance anyways so what's another 1,800/month?[/quote]

A lot of people also move in retirement. Either to relocate or downsize that 4/5 bedroom home when only 1/2 people live in it!

This many times requires no mortgage. I believe it is difficult to get a mortgage once you have no W-2 income anymore. So unless not moving at all once you retire, you may be forced to not have a mortgage.[/quote]

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