{
  "id": 3668846,
  "title": "The No. 1 Overlooked Expense That Derails Retirement Budgets Isn't Healthcare",
  "url": "https://urgent.news/2026/08/25/the-no-1-overlooked-expense-that-derails-retirement-budgets-isnt",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-25T17:00:23.000Z",
  "source": {
    "name": "Yahoo Finance",
    "slug": "yahoo-finance",
    "url": "https://finance.yahoo.com/real-estate/articles/no-1-overlooked-expense-derails-170023721.html"
  },
  "original_language": "en",
  "account": "When it comes to retirement planning, healthcare costs often steal the spotlight. However, there's another significant expense that many retirees overlook until it puts a strain on their fixed income. This hidden cost is housing-related, according to finance experts. Julian B. Morris, a CFP and principal of Concierge Wealth Management, explains that housing doesn't magically disappear in retirement; it simply shifts into a new form. This includes ongoing expenses such as property taxes, insurance, maintenance, and utilities. These costs tend to increase over time, particularly in regions that are growing, and can add up to substantial amounts annually.\n\nBrian Finkelstein, chairman of Broad Financial, notes that property taxes and insurance are among the fastest-rising costs, especially in areas experiencing population growth. Even without a mortgage, retirees can expect to spend between $15,000 and $25,000 per year just to maintain their homes. Maintenance and repairs can also contribute to financial strain, with experts recommending a budget of 1% to 2% of the home's value annually for repairs, but acknowledging that this number can vary greatly depending on the extent of the needed work.\n\nTom Buckingham, chief growth officer at Nassau Financial Group, emphasizes the importance of budgeting for these housing costs through predictable income sources. He warns that if essential housing expenses are tied heavily to income that fluctuates, retirees risk running out of money over time. Even those planning to downsize or tap into their home equity can encounter unexpected financial shocks, particularly in the form of taxes.\n\nGeorge Dimov, CPA and CEO of Dimov Tax, shares a poignant example of a client who sold her home in 2023 for a substantial amount but still faced a significant tax bill due to the exclusion rules from a few decades ago. Despite the exclusion, she still owed almost $700,000 in federal taxes on the profit. This highlights the often-unexpected tax implications that come with selling a primary residence, a fact that many retirees are not prepared for.\n\nThe consensus among experts is clear: to avoid housing-related financial stress in retirement, retirees should view their housing costs through the lens of their income rather than the home's value. Ideally, housing expenses should not exceed 20% to 30% of total retirement income. This approach ensures that retirees maintain financial stability and peace of mind as they enjoy their golden years.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}