I’m 65, sick of work, and nearing retirement — but both my 1994-built home and camp property need major updates. How can I cover these big future costs other than just working longer?

Can you afford the repairs in retirement?

Before retiring, one question to ask yourself is whether you can afford the cost of maintaining your home(s).

Even if you take care of necessary repairs now, unexpected expenses can arise at any time. You might replace the roof and upgrade your HVAC system, only to have your stove or refrigerator break down unexpectedly. Or the repairs may not involve your home at all — your car could suddenly need costly work.

Retirement will hopefully last for decades, and during that time, it's inevitable you’ll face surprise costs, as well as predictable but irregular maintenance expenses.

Because of this, you should retire only if your budget includes a financial cushion for these things.

If you don't have an emergency fund or sufficient investments to produce the income necessary for home maintenance and unexpected costs, you may not be ready to retire. In that case, you are not yet ready to retire. You need to keep working and saving until you do have the funds to cover these things.

Regarding immediate repairs, one option is to work until you’ve covered those repair expenses. However, if you have planned your retirement investments appropriately with enough income to cover those costs as they arise, then there's no need. When the time comes, you can just use the funds earmarked for those expenses.

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What if you don't have enough?

If you find you don't have enough to cover the costs of maintaining your homes, you have several options:

• Working longer – Continuing to work can help if you’re generally concerned about affording unexpected expenses in retirement.
• Downsize or sell your properties – Selling one or both homes and purchasing a less expensive property with fewer repair needs could reduce your financial burden Owning fewer properties also lowers your overall costs, giving you more financial flexibility in retirement. Before selling, consider whether your home could pass an inspection or if its condition might affect your ability to get a fair price. Given today’s mortgage rates, you’ll also want to ensure you can generate enough from the sale to purchase a new home outright or significantly reduce your house expenses.
• Finance repairs – If you have enough cash flow from savings to cover a monthly loan payment but prefer not to withdraw a large lump sum, borrowing could be an option. This approach may prevent you from withdrawing too much from your retirement savings early on, but it can be costly due to high interest rates. If you go this route, ensure the debt payments won’t strain your ability to maintain a safe withdrawal rate.

Ultimately, your decision will depend on whether you want to keep the properties, how much you’ve saved for retirement and how important it is for you to retire as soon as possible. Your answers to these questions will help determine the best path forward.