Denmark to raise retirement age to 70

Re:Denmark to raise retirement age to 70 by IndubitableCoil on Sunday May 25, 2025 @03:06PM (#44090128)

I hear this sentiment frequently but it doesn't pencil out. Renting an equivalent unit will typically, month-to-month, be cheaper than buying. Of course a significant portion of the monthly mortgage payment goes to principal which increases your net worth, but there are many cases where the money you save monthly by renting will actually exceed the principal you accumulate from your mortgage payment. In fact, there are plenty of helpful calculators to help you figure out what makes the most sense if you don't have a love affair with Excel [1].

You may argue that the the value of the house will appreciate well in a good market, but there is nothing stopping you from taking the money you saved by renting and putting it in an appreciating asset.

[1] https://www.nerdwallet.com/calculator/rent-vs-buy-calculator

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Re:Denmark to raise retirement age to 70 by dehrmann on Sunday May 25, 2025 @03:57PM (#44090559)

The only real financial benefit to home ownership is it enforces savings.

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Re:Denmark to raise retirement age to 70 by ajxs on Sunday May 25, 2025 @08:59PM (#44092865)

Where do I input the yearly growth of the property's value? Property prices where I live in Sydney have grown ~7% on average over the last ten years. That's higher than the average loan interest rate over the last ten years of ~4.5%. It's possible to find some other investment that earns more than ~7% profit, but in order to really be more profitable it would also need to cover the amount you spent in rent over that period.

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Re:Denmark to raise retirement age to 70 by oldpersonintx2 on Monday May 26, 2025 @10:09AM (#44097567)

the rent vs buy calculator does not tell me what to do when I am in my 60s and cannot find work

a homeowner in that scenario can sell their home; a renter is in trouble

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