Is home ownership necessary in retirement?

The simple answer is no. But the question isn't so simple. Many retirees like the idea of taking what is often the largest component of spending (one's mortgage) off their worry list by becoming mortgage-free in retirement. That's great if there are plenty of assets to cover the remaining aspects of retirement. But if there isn't then paying off one's home is not a good idea.

When we consider the cost of home ownership we tend to focus on the mortgage and not the other significant factors: property taxes, home maintenance, insurance, etc. We also tend to think that if we're renting we're throwing money away and we're not building equity. But the math of real estate tells us that renting and buying are two versions of the same thing. Sometimes one is preferable to the other. Want to know more? Look here: Home ownership in retirement