Paying off a mortgage is supposed to be one of retirement’s biggest financial victories, but it doesn’t make housing costs disappear. Property taxes, homeowners insurance, utilities, maintenance, HOA fees, and major repairs can continue climbing long after the final mortgage payment clears. For retirees living primarily on Social Security and withdrawals from savings, a $1,000 increase in an annual tax bill can feel considerably bigger than it did during their working years. Eventually, rising property taxes in retirement can raise an uncomfortable question: Is keeping the paid-off house still the financially sensible choice? There isn’t one dollar amount that answers that question, but there are several calculations that can make the decision much clearer.
