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Renting has become more common among older Americans, with homeownership rates for those 65 and older dropping from 80% to 74% in the past 20 years. While renting in retirement can be a sensible option for many, financial expert Suze Orman urges retirees to consider one often-overlooked risk: inflation.

According to Orman, while renting offers flexibility and can be a smart financial move, retirees should plan for the likelihood of rising rental costs. “I want to make sure you are not blind to one risk,” she warned in a recent blog post. “Landlords will raise your rent from time to time. I know that may sound obvious, but it’s not human nature to carefully think through what things might cost 5, 10 or 20 years from now.”

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A recent report from the Washington Post backs up her concerns. Data shows that average rents have increased by roughly 4% annually, though recent hikes have been even higher in many places. That means a monthly rent of $1,000 today could rise to $1,220 in five years and balloon to $2,670 over 25 years.

It’s worth noting that renting in retirement isn’t necessarily a bad decision but requires careful long-term financial planning. Orman stressed that retirees need to factor future rent increases into their budgeting. “If you’re planning to rent, make sure the rent fits within your means not just today but years from now,” she said. “Living below your means but within your needs has always been my advice.”

Experts across the board echo her advice. According to Bankrate, inflationary pressures are expected to persist, pushing up the costs of necessities, including housing. This is especially critical for retirees on fixed incomes who may not have the financial wiggle room to absorb higher costs over time.

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Orman points out that Social Security is crucial in managing future financial needs, particularly for covering rising housing expenses. “The longer you can delay claiming your Social Security benefits, the higher your payout,” she explained.

Experts recommend that retirees aim to delay Social Security benefits until at least their full retirement age – between 66 and 67, depending on their birth year – or ideally until 70 when the benefit amount is at its maximum. According to the Social Security Administration, the annual cost-of-living adjustment (COLA) is designed to help retirees keep up with inflation.

Additionally, having a portion of retirement investments in stocks could provide retirees with inflation-beating returns over time. “Remember that stocks deliver the best inflation-beating gains over the long term,” Orman said, suggesting that even in their 60s and 70s, retirees should keep a portion of their portfolio in the stock market to help cover future costs like rent.

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This article Suze Orman Reveals Hidden Danger Of Renting In Retirement – ‘Make Sure You Are Not Blind To One Risk’ originally appeared on Benzinga.com