Housing Costs That Surprise Social Security Beneficiaries in Retirement

Financial experts weigh in on the unexpected housing expenses senior citizens are likely to encounter in retirement.

Published: 7/1/2025, 10:43:40 AM EDT

Housing Costs That Surprise Social Security Beneficiaries in Retirement — A Social Security Administration (SSA) office in Washington on March 26, 2025. (Saul Loeb/AFP via Getty Images)

More than half of non-retired U.S. adults say they expect to rely on Social Security benefits to pay for necessary expenses once they retire, according to a Bankrate study. However, financial experts assert that many are likely to encounter unexpected housing expenses.

“Increased property taxes, insurance, and expensive repairs catch retirees by surprise,” Dallas, Texas, financial adviser Randall Yates told NTD. “Most believe once the mortgage is paid off, there is a reduction in expenses, but maintenance and local taxes increase with the house value.”

Yates is the co-founder of the VA Loan Network.

Housing costs can be a challenge even with cost-of-living adjustments (COLAs) afforded by the Social Security Administration (SSA).

The COLA is built into Social Security benefits and adjusted annually to account for inflation and the increases in living costs that occur over time.

“What surprises many retirees is that the Social Security COLA isn’t enough to keep up with rising household expenses,” Southern California-based registered social security analyst Kevin Walton told NTD. “Public utilities such as gas and electricity cause the greatest anxiety, but you can also throw in internet costs as well since landline, android, iPhone, and television are all dependent on the internet.”

Walton advises exploring whether local utility companies offer senior discounts.

“It pays to ask if they have any available,” Walton said. “State and local governments have assistance programs as well. Some retirees opt to get a part-time job to create more income, however they need to know the income limit cap of $23,400 while collecting social security simultaneously to avoid social security overpayment penalties."

According to HighSpeedInternet.com, good internet service costs about $70 per month and the SSA estimates that the average retired worker receives $2,002.39 per month in Social Security income, with spouses of retired workers receiving an average of $948.38 per month.

“Housing doesn’t retire just because you do,” Charlotte, North Carolina, financial planner and educator Nadia Vanderhall told NTD. “Even if your mortgage is paid off, there are still bills to be paid. You’ve got property taxes, insurance, utilities, repairs, and maybe HOA fees.”

Homeowners Associations (HOA) are private entities that operate a conglomeration of houses, townhouses, or condominiums and collect a fee to oversee the community. Realtor.com data found that the average monthly HOA fee nationwide is $259.

The rising cost of housing is one reason that retirees tend to downsize, according to Yates, who recommends relocating prior to necessity.

“Pursue senior tax exemptions, rent out a room, or explore reverse mortgages ahead of time,” Yates said.

Cities in states such as Florida, Tennessee, and Texas are often high on the list of places to relocate among retirees because they lack a state income tax and have affordable housing in certain areas.

“Strategic downsizing or relocation to lower-cost areas can preserve financial security," Yates added.

The views and opinions expressed are those of the interviewees. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. NTD does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. NTD holds no liability for the accuracy or timeliness of the information provided.