As the economy goes from strength to strength the price of houses continues to grow, both in outright purchases and rent. While this can be managed by those who are receiving wage increases it is the retired who are in real danger. A new study has shown that many retired individuals are struggling to cope with expenses with rent or their mortgage being a key issue.
One-third of retirees in America have no money saved and are facing retirement without any safety net. The cost of living is increasing and the pressure is only increasing on this generation. While this has not been easy many retirees have come up with a clever solution to the problem as a throwback to their old college days, they have got a roommate.
While it may sound novel 70% more people over the age of 65 live with roommates today compared to 10 years ago. The two biggest problems facing people in their old age are the expense of living and loneliness. This solution combats both effectively.
Many people heading into retirement have a large house with a mortgage still to be paid. Renting a room to a fellow senior citizen allows them to take some pressure off their own finances, help another elderly person by giving lower than market rent pricing, and allows them to form a bond with someone their old age.
The idea has seen great success with many groups forming in cities to help make it work. The New York Foundation for Senior Citizens for example helps to pair people in these situations. Advisors have warned that if operating without the help of such a group, you need to be careful. Senior Citizens are often targetted by scams and this has the potential to be the same. Make sure a legal agreement is signed before anything is authorised.
