But, in retirement especially, you don’t want to take on more debt than necessary, since the cost of a mortgage is fixed, but the returns on your investments, the housing market and your health , While you can use retirement funds from a 401(k) or IRA to purchase a home, it might not be a smart financial move., It’s a myth that buying a house in your later years is always a bad move. Find out if buying a house at 65-years-old or older is right for you., Buying a House Near Retirement Age: Should I Take Out Mortgage or Pay All Cash? . In other words, you have plenty of savings and you will never be reliant on the equity component. This really has to do with the current interest-rate environment., Types of Retirement Income for Buying a Home If you are retired, chances are, you still have some type of income even though you no longer go to work. Many retired people get their income from: Social security payments Trust distributions 401k Roth IRA Pension Spousal support/survivor’s benefits Annuity income Rental properties Investments, Thinking about buying a home in retirement? Learn more about the benefits and drawbacks, plus other housing options to consider..