Downsizing your home in retirement is not only a common practice but also a wise strategy. For seniors, especially empty-nesters, moving to a smaller home presents a new beginning as well.
Whether you’re looking to change your lifestyle or reduce your expenses, downsizing gives you a financial boost that helps you retire more comfortably.
This article will cover the advantages and disadvantages of downsizing your home after retirement. It also includes a useful checklist and some tips to help with your downsizing move.
The Expected (Or Unexpected) Benefits of Downsizing Your Home
This section details the familiar and surprising upsides of downsizing your living space and how it can impact your life once you are in retirement.
More Financial Security
Downsizing your home often means lower mortgage payments, utility bills, insurance and property taxes. This equates to better financial security as well as more funds to use for travel and hobbies.
More Spontaneity
A smaller home indicates less planning whenever you feel like travelling somewhere. The reason is there is less clutter and fewer things to think about, which typically translates to less planning. It lets you embrace unexpected moments, impromptu getaways and basically more freedom.
New Lifestyle Opportunities
Downsizing can be a way for you to experience new lifestyle opportunities or reinvent your lifestyle. By downsizing, you can look forward to living in places or communities where you can have new adventures and more interesting activities than what you are used to.
Easier to Maintain
A downsized home is easier to clean and maintain due to less space. You spend less time decluttering, which, in turn, gives you more time and energy to devote to your pursuits. You also have more time to participate in activities you love.
More Family Bonding
Having a smaller home encourages more family time because it creates a more intimate and relaxing environment. It also promotes closer interactions that lead to more substantial talks with you and your family members.
Disadvantages of Downsizing
Below are potential drawbacks that seniors may face when moving to a smaller living space.
The Costs of Moving
Moving may be stressful and involve staggering costs. Even if you have decided to downsize, you still need to contend with moving expenses, which can cost up to $10,000, depending on the location and services included.
Less Space
If you are used to living in a bigger home, the smaller space can take some getting used to. It also means limited storage for personal things. And because you have less space, you also potentially have minimal privacy.
Downsizing Home Checklist
- Lifestyle
- Assess your needs for your new home.
- Take lifestyle changes into account.
- Sort and declutter
- Take stock of your belongings and make an inventory.
- Sort what things to keep, discard or sell.
- Donate discarded items to charity or sell them online or through a garage sale.
- Create a packing list of things to bring to your new home.
- Refill prescription medications in advance.
- Home sale
- Prepare your home for potential buyers.
- Enhance curb appeal by improving the landscape.
- Depersonalize the house and create an inviting atmosphere.
- New home
- Think about where you want to retire.
- Research properties that fit your downsizing preferences.
- Inspect potential homes.
- Once you have decided on a home, take measurements to help you decide what to include in the move.
- Transfer utility services or change providers if necessary.
- Plan on where to position your furniture, appliances and other bulky items.
- The move
- Choose between renting a moving truck or hiring a moving company.
- Set a firm date for the move.
- Pack and label the boxes and other things to include in the move.
- Settling in
- Unpack your belongings by room.
- Organize and maximize your space.
- Update your information and address on your bank accounts, credit cards, driver’s license, all other documents, subscriptions and memberships.
Downsizing Tips for Seniors
Here are essential tips to remember when downsizing your home:
- Get a professional to objectively assess the value of your current home based on comparable sales in your location.
- Talk to a downsizing expert and ask for advice or strategy on how to make a smoother transition to downsizing.
- Choose a moving company that specializes in downsizing.
- Install energy-saving appliances and devices that help lower your utility bills.
- Save on gas, maintenance and insurance expenses by using public transportation.
- Consolidate your financial assets and simplify your finances.
FAQs
Does downsizing actually save money?
Downsizing saves you money because it requires less upkeep and reduced housing expenses, maintenance costs, property taxes and utility bills. You can save more by adopting a minimalist lifestyle, budgeting your consumption and avoiding unnecessary purchases.
At what age do most people downsize?
Downsizing is typical for people in their late 50s to early 60s but is seen as more common for seniors 55 or older. It often occurs during the stage when children have moved out, and seniors want a less stressful and more affordable lifestyle.
What should I get rid of first when downsizing?
Start with the items you are certain you do not need, have duplicates or are in excess. Take only those that mean to you or will be useful when you shift to your new lifestyle.
