Social Security Concerns and Arizona Homeowners: Navigating Uncertainty in Retirement

Concerns about Social Security benefits are intensifying for Arizona retirees, especially as many rely on these benefits for mortgage payments amid rising housing costs.

Arizona Retirees Depend More on Social Security

A report from the Employee Benefit Research Institute found that retirees aged 62-63 receive 67% of their income from Social Security, compared to 52% for retirees aged 74-75. This trend stems from the decline of pensions and the challenges of building 401(k) savings.

Can Social Security Cover Arizona Mortgages?

With the average monthly Social Security benefit at $1,976 as of January 2025, covering housing costs is increasingly difficult. Arizona’s rising home values and high property taxes exacerbate the strain, especially for those still carrying mortgages.

Managing Housing Costs in Arizona:

• Delaying Retirement: Research from Boston College shows that retirees with mortgages often work an additional year compared to those without.

• Tapping Home Equity: Options like HELOCs or reverse mortgages can provide financial relief.

• Downsizing: Selling a larger home for a smaller property can reduce financial pressure.

Looking Ahead: Policy Changes and Social Security Stability

The Social Security Board of Trustees projects that scheduled benefits are covered through 2035, but new federal initiatives under the Trump administration are raising questions. Elon Musk’s leadership of the Department of Government Efficiency (DOGE) has sparked debate about potential reforms to federal payment systems.

Take Action: Explore Your Options

Navigating retirement finances in Arizona requires proactive planning. Whether you’re considering refinancing, downsizing, or leveraging your home equity, understanding your options can secure your financial future.

For personalized advice on buying, selling, or managing your Arizona home, reach out today at +1 480-298-5551 for a free consultation. Your retirement planning deserves a solid foundation.