4 things retirees should consider when deciding whether to buy or rent

In a recent discussion on her weekly podcast, financial expert Suze Orman addressed some difficult questions facing many people at or near retirement age. For example, is it better to buy a home in your dream retirement community or rent it? It’s not just a financial decision, especially for anyone who has managed to reach their golden years with a good measure of economic security.

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Here are four important factors Orman highlights to help retirees make the best housing decisions for their golden years.

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Understand your financial flexibility

Orman emphasized that your financial situation is the most important point to begin deliberations. For example, a debt-free couple with $100,000 or more in savings and $850,000 to draw from various retirement accounts has a greater number of options. For a couple like this, the decision to buy or rent depends on factors other than affordability.

Consider lifestyle and maintenance

Orman was quick to point out that as we age, many of the physical activities we took for granted become more difficult. She said maintaining a home can become increasingly difficult as you get older. Even simple tasks like housekeeping and minor home repairs could one day exceed your previous abilities.

With this in mind, a luxury senior community offering maintenance, amenities and other services that simplify or enrich your life may be the wisest choice and allow you to focus on your retirement.

Assess your health and likely future care needs

Orman emphasized that health and access to adequate care become increasingly important as we age. Renting rather than owning may also be the wisest choice here. Many senior living communities offer both independent living and assisted living as needed, and many employ trained healthcare personnel on standby in case of an urgent health issue.

Balance your personal desires with real-world practicalities

Orman said this decision ultimately comes down to personal preference and practical considerations. For a couple who enjoys traveling frequently and spending lots of time socializing with friends, the benefits of a luxury senior community once again outweigh private homeownership. Senior living communities can also encourage active community living, which can lead to a sense of belonging and provide plenty of activities to keep you engaged.

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Putting gold in the “golden years”

Orman ultimately emphasized that choosing where to live as you age is a deeply personal decision that you (and your spouse/partner) should discuss at length. She also suggested weighing your options carefully, but she cautioned about the importance of taking proactive steps while you’re still healthy and agile. Orman highlighted the benefits of moving to a senior community as soon as possible, noting the range of activities, numerous social opportunities and often built-in health care support these communities offer.

Many older adults may put off decisions like this because they can spark thoughts about uncomfortable eventualities. This can be an even more emotional decision for longtime homeowners, who are naturally attached to the place they’ve called home for so many years. Orman emphasized that while these are factors to consider, the real goal here is to find a living situation that not only meets your practical needs, but also brings greater potential for happiness, freedom and fulfillment during your golden years.

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This article originally appeared on GOBankingRates.com: Suze Orman: 4 Things Retirees Should Consider When Deciding to Buy or Rent