Renters can retire well without owning a home, but they need to save more. If a homeowner saves 5%, a renter might need to save an additional 10-20% to cover rent, insurance, and maintenance costs in retirement.
Perfectly legitimate to say I'm not going to own a home. The only thing is, you've really got to save more for retirement than you otherwise would because you've got to cover your rent through the cost.
And if we looked at more. So let's say someone was saving 5% and they had a home they were paying off versus the person who was renting, should they be at 15 or 20% in terms.
Of near 10 or more? I mean, one way you can sort of measure it is if you've got. If you're renting and you've got a friend who owns a home, then ask them them what they're paying in mortgage interest, not mortgage payment of principal, because that's actually saving, that's building capital. But mortgage interest is just an expense.
Yeah. It's just money you're giving away, right?
Yep. And rates and insurance and maintenance, all of that money. If you're sort of setting aside the gap money, you know, the gap between those two amounts that, you know, will really help set you up for retirement.
