I’m 64, make $1,500 a month driving Uber and get nearly $5,000 a month in pensions and Social Security — ought to I repay my mortgage earlier than I retire?

Does it make sense to repay my home on the time I retire?

See: I’m 67 and retired with $57,000 left on my mortgage and $600,000 saved for retirement — ought to I repay my dwelling now?

Dear reader, 

You ask some of the frequent questions we get at MarketWatch about retirement saving and spending — if it is smart to repay a mortgage earlier than retirement. 

The reply is, as you could have suspected: it relies upon. This state of affairs is very private to the person. Some individuals have completely no issues coming into into retirement with a mortgage, whereas others are confused on the thought of this debt over their heads after they’ve left the workforce. 

What you must do earlier than you possibly can even reply this query is jot down each single expense you anticipate you’ll have in retirement, and add a little bit further cushion for what you received’t anticipate. (You ought to goal to have an emergency financial savings fund that’s simply accessible ought to an emergency come up … maybe six months’ price of bills would do, although some retirees wish to be further cautious and have a complete 12 months’s price in a checking account.) When itemizing your bills, embody all the things – the massive payments, like your mortgage, taxes, utilities, groceries, fuel for the automotive, medical wants, in addition to the smaller, extra versatile spending, corresponding to holidays, items for family members, hobbies, leisure, tv and journal subscriptions, pet care, and so forth. 

See how your bills examine to your revenue, however don’t embody your Uber earnings (or another earnings you could have). How do you’re feeling about it? Is it too tight? More than sufficient? That can assist you resolve if you would like that mortgage fee included within the checklist. 

Also see: I’ve a $250,000 mortgage, with 24 years left on the mortgage. Should I promote inventory to repay the mortgage earlier than I retire in a number of years?

Also decide if paying it off forward of time would require you to proceed working a bit longer, and should you’re thinking about doing so. You most likely don’t wish to faucet into your $850,000 to repay the mortgage, as that would depart you with lower than $700,000. You ought to have as a lot as attainable in retirement financial savings earlier than you retire. It could sound cliche, however advisers aren’t fallacious after they say you possibly can borrow for a house or an training however not your retirement. On the opposite hand, should you hold paying your mortgage for the subsequent few years, and even throw a little bit further on the principal when you possibly can, you’ll find yourself with “bonus” cash once you’ve already retired and you’ve got all that further money. 

This solely works should you can financially afford the mortgage in retirement, and also you’re emotionally snug doing so. If the thought of getting this invoice going into retirement once you lose a few of your revenue provides you any stress, and possibly even retains you up at night time, it received’t do you any good. In that occasion, I might counsel making an attempt to strike some type of steadiness and attain out to a professional monetary planner that can assist you dig into the small print of your monetary plan and assist you kind it out. 

Readers: Do you’ve got options for this reader? Add them within the feedback under.

Have a query about your individual retirement financial savings? Email us at HelpMeRetire@marketwatch.com