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Renting inretirementis becoming more commonplace.
There are all sorts of very good reasons to rent.
When you own a home, your housing costs are predictable.
But if you rent, your costs will likely increase over time.
Its important to factor rent increases into your budget, especially when you are living on a fixed income.
The bottom line is that rents rise over time, Orman said.
The average increase has been around 4% a year, but lately it has been higher.
At a 4% average rate, your cost to rent doubles in 20 years, she said.
That doesnt make renting a bad option.
A rent that doesnt stretch your budget today gives you room to absorbfuture rent hikes, Orman wrote.
As I have long advised, live below your means but within your needs.
You should also delay taking Social Security benefits if possible.
Aim for the biggest possible Social Security benefit, Orman wrote.
That higher payout will be so valuable to cover (rising) living costs for a much older you.
Orman also recommends keeping a portion of your retirement savings invested in stocks.
Remember that stocks deliver thebest inflation-beating gainsover the long term, she wrote.
It really depends on the individual, their goals, their financial situation and where they live.
Renting may also make better sense for your retirement lifestyle.
Additionally, retirees may find that their homes are no longer safe or suitable.
Their homes may not be equipped for aging in place or their physical challenges, Trapasso said.
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