Retirement

Why do Renters Have to Save More?

The infographic starts with a vector image of two houses, side-by side, both well-appointed and attractive. Above the houses is text that reads: Why do Renters Have to Save More? When preparing for retirement, what’s the difference between owning and renting?

The infographic starts with a vector image of two houses, side-by side, both well-appointed and attractive. Above the houses is text that reads: Why do Renters Have to Save More? When preparing for retirement, what’s the difference between owning and renting?

Continuing down, the houses have realtor’s shingles out front with the following statistics: Homeowners should save 5.25 times their salary to retire at 68. Renters should save 8 times their salary to retire at 68.

Continuing down, the houses have realtor’s shingles out front with the following statistics: Homeowners should save 5.25 times their salary to retire at 68.

Below there are two similar images of lines signifying a city map and a pinned highlight, side by side. The text reads: housing prices increased as much as 20% in parts of the U.S. but. Rents increased in 58% of US counties in the last three years.

Renters should save 8 times their salary to retire at 68.

Below there are houses with pinned highlights signifying a lightbulb and a car. The text reads: there are other pros and cons to renting versus owning a home. Homeowners may face larger mortgage payments when interest rates are high. Rates on a 30-year mortgage are nearly 7%.

Below the houses are two similar images of lines signifying a city map and a pinned highlight stacked on top of each other. The text reads: housing prices increased as much as 20% in parts of the U.S. but.

Lastly, there is a stylized sofa, houseplant, and lamp. The text above it reads: but those same high interest rates can cause rents to increase as well. Your lifestyle can affect your retirement strategy.

Rents increased in 58% of U.S. counties in the last three years.

Disclosure: Past performance does not guarantee future results. The return and principal value of home prices will fluctuate over time as market conditions change. When sold, a home may be worth more or less than its original cost. In part, rent prices are determined by supply and demand factors. Other factors that determine rent prices include location and square footage. There can be no guarantee that that rents will continue to increase or decrease in a particular geographic area. Sources: 1. Yahoo Life, April 12, 2023, 2. USA Facts.org, July 21, 2021, 3. USA Facts.org, March 28, 2023, 4. US News & World Report, October 31, 2022.

Below there are houses with pinned highlights signifying a lightbulb and a car. The text reads: there are other pros and cons to renting versus owning a home. Homeowners may face larger mortgage payments when interest rates are high. Rates on a 30-year mortgage are nearly 7%.

Lastly, there is a stylized sofa, houseplant, and lamp. The text above it reads: but those same high interest rates can cause rents to increase as well. Your lifestyle can affect your retirement strategy.

Disclosure: Past performance does not guarantee future results. The return and principal value of home prices will fluctuate over time as market conditions change. When sold, a home may be worth more or less than its original cost. In part, rent prices are determined by supply and demand factors. Other factors that determine rent prices include location and square footage. There can be no guarantee that that rents will continue to increase or decrease in a particular geographic area. Sources: 1. Yahoo Life, April 12, 2023, 2. USA Facts.org, July 21, 2021, 3. USA Facts.org, March 28, 2023, 4. US News & World Report, October 31, 2022.

Have A Question About This Topic?

Related Content

What's My 2023 Tax Bracket?

What's My 2023 Tax Bracket?

Check out this handy reference of updated ranges from the IRS in case your designated bracket has changed.

What You Need to Know About Social Security

What You Need to Know About Social Security

Every so often, you’ll hear about Social Security benefits running out. But is there truth to the fears, or is it all hype?

Understanding Marginal Income Tax Brackets

Understanding Marginal Income Tax Brackets

An inside look at how marginal income tax brackets work.