As retirement age rolls around, most couples are excited to leave the 9-to-5 grind behind. But for folks around age 65, there are a couple of big money issues that can rain on that retirement parade: mortgages and tariffs. Both can affect how much money you keep in your pocket — and how far your nest egg will stretch in retirement.
In this article, we’ll break down what these financial forces mean, how they affect you short-term and long-term, and what you can do to stay ahead of the game.
Mortgage and Tariff Issues May Impact Couples Nearing Retirement
| Topic | Details |
|---|---|
| Average Mortgage Debt at 65+ | $110,000 (source: Federal Reserve) |
| Rise in Mortgage Usage | Up 28.5% among seniors since 2000 (NationSwell) |
| Typical Retirement Age | 65 for both men and women (SSA.gov) |
| Tariff Effects | Increased consumer goods prices; impact on savings and fixed incomes |
| Short-Term Issues | Higher monthly payments, cost of living spikes |
| Long-Term Risks | Reduced financial flexibility, inflation pressure, decreased retirement security |
| Official Resources | SSA.gov, ConsumerFinance.gov, Congress.gov |
For couples nearing retirement at age 65, mortgage debt and tariffs can create both immediate headaches and long-term obstacles. But with smart planning, budgeting, and investment diversification, these challenges don’t have to wreck your retirement.
Keep learning, stay flexible, and make use of every tool and benefit available. You earned your retirement — now make it work for you.
Mortgage Debt: Not Just a Young Person’s Game
Believe it or not, more Americans are carrying mortgage debt into their retirement years. According to recent surveys, almost 44% of homeowners aged 60 to 70 still have mortgage payments. That’s a big shift from a generation ago when most folks entered retirement mortgage-free.
Short-Term Impact
- Cash Flow Crunch: Monthly mortgage payments eat into fixed retirement incomes.
- Less Flexibility: With a big chunk going to the bank, there’s less left for things like travel, healthcare, or helping out grandkids.
- Interest Rate Risk: Adjustable-rate mortgages could climb, making payments unpredictable.
Long-Term Impact
- Equity Limits: Carrying a mortgage may mean less equity to tap in emergencies.
- Downsizing Delays: You might not be able to move or sell if your home isn’t paid off.
- Estate Planning Issues: Debt could complicate what you leave behind for your family.
Real Example:
Tom and Sheila, both 66, still owe $95,000 on their home. Their monthly mortgage of $850 limits what they can pull from savings and enjoy in retirement. They considered refinancing, but rising interest rates would only raise their monthly bill.
Tariffs: A Hidden Retirement Expense
Tariffs are taxes placed on imported goods. When the government raises tariffs, prices on items like appliances, electronics, cars, and groceries go up. And those price increases? They trickle down to regular people — especially retirees living on a fixed income.
Short-Term Impact
- Inflation Spike: Basic goods cost more. Groceries, home repairs, clothing — you name it.
- Investment Volatility: Markets don’t like trade wars. Your 401(k) might take a hit.
- Budget Squeeze: You have to stretch the same amount of money across more expensive items.
Long-Term Impact
- Lower Return on Investments: If trade disputes continue, long-term economic growth may slow.
- Devalued Savings: Over time, inflation eats away at your purchasing power.
- Policy Uncertainty: Retirees may find it harder to plan when government policy is all over the map.
Protect Your Retirement Against These Risks
- Reassess Your Mortgage Strategy:
- Consider downsizing or relocating to reduce costs.
- Refinance only if it locks in a low rate.
- Explore a reverse mortgage (but get professional advice).
- Adjust Your Budget for Inflation:
- Build in a 2–3% annual inflation rate when planning expenses.
- Cut unnecessary subscriptions and lifestyle costs.
- Diversify Your Portfolio:
- Include U.S. Treasury Inflation-Protected Securities (TIPS).
- Balance growth and income-producing investments.
- Watch the News, But Don’t Panic: Tariff changes often get reversed. Stay informed but don’t make emotional investment moves.
- Use Federal and Local Programs:
- Look into property tax breaks for seniors.
- See if you qualify for mortgage relief programs.
- Explore healthcare subsidies if prices rise.
FAQs On Mortgage and Tariff Issues May Impact Couples Nearing Retirement
Q: Should we try to pay off our mortgage before retirement?
A: Ideally, yes. A paid-off home reduces monthly expenses. But it depends on your savings, income, and investment returns. Sometimes investing extra cash yields better returns than paying off low-interest debt.
Q: How do tariffs affect everyday retirees?
A: Tariffs raise the cost of imported goods. For retirees, that means groceries, clothes, and appliances may get more expensive.
Q: Are these trends expected to continue in 2025?
A: Mortgage debt in seniors is on the rise, and tariffs may fluctuate with changing administrations. Stay updated via Congress.gov.
Q: Can reverse mortgages help?
A: They can offer income but come with fees and risks. Only consider if you’re staying in your home long-term and understand the terms.
Pro Tips from Financial Experts
- Work longer if possible: Even part-time work at 65 can give your finances a big boost.
- Talk to a CFP (Certified Financial Planner): They can help you create a custom retirement plan.
- Don’t rely only on Social Security: It covers only about 40% of pre-retirement income for the average worker (SSA.gov)
