54 Highland Avenue
Manchester Center, VT 05255
nick@vtretirement.com
(802) 367-3958

87 North Main St.
Rutland, VT 05701
nick@vtretirement.com
(802) 772-7945

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?

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.

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.

Have A Question About This Topic?

Saving on Subscription Service Costs

There are ways to improve your physical fitness without denting your fiscal fitness.

Filing Final Tax Returns for the Deceased

The federal government requires deceased individuals to file a final income tax return.

Don’t Be Your Own Worst Enemy

Emotional biases can adversely impact financial decision making. Here’s a few to be mindful of.

View all articles

My Retirement Savings

Estimate how long your retirement savings may last using various monthly cash flow rates.

Comparing Mortgage Terms

Estimate the total cost in today's dollars of various mortgage alternatives.

What Is the Dividend Yield?

This calculator helps determine your pre-tax and after-tax dividend yield on a particular stock.

View all calculators

Investment Strategies for Retirement

Investment tools and strategies that can enable you to pursue your retirement goals.

Principles of Preserving Wealth

How federal estate taxes work, plus estate management documents and tactics.

Your Cash Flow Statement

A presentation about managing money: using it, saving it, and even getting credit.

View all presentations

Leaving Your Lasting Legacy

Want to do more with your wealth? You might want to consider creating a charitable foundation.

Stay Safe with a B.O.P. At Your Back

Learn about the advantages of Business Owner Policies with this highly educational and fun animated video.

What to Do When You Lose Your Wallet

Ever lost your wallet? Frustrating. Here’s what you can do to keep yourself safe.