Retirees Who Live in Someone Else’s Home See Big Savings – Center for Retirement Research

More than one in five elderly Americans live with other adults — the adults’ offspring, parents, grandchildren, extended family, friends — who are not their romantic partners.

A new study examining housing costs paid by retirees through these arrangements finds a huge gap in who is being helped.

Older adults who are houseguests spend about $730 a month on utilities and rent or mortgages than hosts who invite others into their homes to stay with them, according to researchers at the University of Kentucky and Georgetown.

Retired hosts, who may be homeowners or primary renters, spend less on housing and utilities than people who live alone or with a partner.

“The financial benefits of living in shared housing are experienced primarily by older adults who are guests,” the researchers concluded.

As baby boomers retire by the thousands every day, housing affordability, and accessibility for people with physical disabilities, are becoming increasingly visible policy issues. By 2021, 11.2 million retired households were spending more than 30 percent of their income on housing costs. The researchers said the higher costs paid by seniors who are hosting others may indicate a need for a policy that provides them with financial assistance to reduce their housing burden.

They analyzed the US Census survey for detailed data on living arrangements, including whether the people in their study, all over the age of 65, were hosts or guests, as well as their income, and how much each family member paid for rent, mortgage and guests. resources. Many older adults living with a non-partner live in separate households. Others may have extended family or unrelated roommates.

If hosts do not see financial benefits, the researchers asked, what do they get from these accommodation arrangements? Perhaps they enjoy helping others. Or maybe they hope that there will be people to help them as they grow up.

Reading this learn by Hope Harvey and Kristin Perkins, see “Shared Families as a Safety Net for Older Adults.”

The research reported here is derived in whole or in part from research activities conducted pursuant to a grant from the US Social Security Administration (SSA) funded as part of the Retirement and Disability Research Consortium. The opinions and conclusions expressed are solely those of the authors and do not necessarily represent the views or policy of SSA, any federal government agency, or Boston College. Neither the United States government nor any of its agencies, nor any of its employees, makes any warranty, express or implied, or assumes any legal responsibility or liability for the accuracy, completeness, or usefulness of the contents of this report. Reference herein to any particular commercial product, process or service by trade name, trademark, manufacturer, or otherwise does not imply endorsement, recommendation or favor by the United States Government or any agency thereof.