Should You Downsize Your Home in Retirement?

One of the biggest decisions anyone approaching retirement needs to make is where they’re going to live. Older adults have plenty of options open to them in this regard, especially if they own their current home. Retirees often choose to live and enjoy their retirement in their existing home, a process called aging in place. Yet there are other options as well, such as downsizing to a smaller and possibly less expensive one. So which decision is the best?

The decision to downsize your home in retirement depends on so many different factors that it’s impossible for us to provide a clear cut answer specifically for you in this opening. Instead, let’s look into all the reasons why retirees might want to downsize as well as the reasons why you might not want to. By the end, you should have a better idea of whether you should downsize your house in retirement. Let’s get started!

Advantages to Downsizing

Downsizing in retirement is often an attractive choice, for many reasons. Some of these are dependent on your personal circumstances, but the following factors are fairly universal so they should be considered. Some of the most advantages to downsizing your house in retirement include:

• Lower (or no) housing costs. A smaller home will typically have lower housing costs, including mortgage payments, property taxes, and insurance. This can free up more money for other expenses, such as travel, healthcare, or hobbies. If you decide to move to a retirement community, depending on the community, the savings can be even better.
• Less maintenance. A smaller home will require less maintenance, such as yard work, snow removal, and repairs. This can also save you time and money. If you decide to move to a retirement community, all this work, including updates to your home, are covered for you. Never worry about replacing a water heater or roof again!
• More convenience. A smaller home may be more convenient for retirees, especially those who are no longer able to climb stairs or maintain a large yard. It may also be easier to find a smaller home that is located near amenities, such as grocery stores, restaurants, and healthcare facilities.
• A fresh start. Downsizing can be a chance to start over and create a new home that is tailored to your retirement lifestyle. You may be able to choose a home that is located in a more desirable area or that has features that are important to you, such as a swimming pool, golf course, or community center

How to Decide Whether to Downsize

The decision of whether you should downsize your home in retirement is a personal one. There is no right or wrong answer, and the best decision for you will depend on your individual circumstances. If you are considering downsizing, it is important to weigh the advantages and disadvantages carefully and to make a decision that is right for you.

Here are some things to consider when making your decision to downsize

• Your financial situation. Can you afford to downsize? Will you have enough money to cover your housing costs, as well as other expenses? If you have equity built up in your existing property, can you put the earnings from that sale into your new home and then have money left over for retirement savings?
• Your lifestyle. How active are you? Do you entertain guests often? Do you need a lot of space for hobbies or other activities? This will influence whether downsizing to a new home is an appropriate decision or not. Also take this opportunity to consider if you really need as much space as you think you do — are you paying for and maintaining extra bedrooms you don’t actually need?
• Your health. Are you able to maintain a large home? Do you need assistance with mobility or other tasks? A smaller home might be more appropriate, especially if it’s one in a retirement community that offers accessibility options or assisted living services.
• Your emotional attachment. How attached are you to your current home? Are you willing to let go of memories and belongings? Remember that you’ll be giving up a lot more than just square footage if you move to a smaller, more modestly-sized home. Just know that leaving your home doesn’t mean leaving your happy memories, if a smaller home makes more sense physically and financially.
• Your family members. Do you currently live close to family, such as your children or grandchildren? Maintaining these connections might be difficult if you move somewhere farther away. Meanwhile, if downsizing will allow you to move closer to loved ones, this might make it a more attractive option.

Should You Consider Downsizing to a Retirement Community?

Many retirees considering whether or not to downsize often find that one of the best options open to them is to choose a retirement community. Retirement communities often tick most of the boxes when it comes to what retirees are looking for in a new home. This is because modern retirement communities feature resort-like campuses with incredible on-site amenities that can cater to an older adult’s hobbies and interests.

Cancel your lawn service your gym membership. Get ready to spend every day in the pool. Expand your hobbies and interests with art studios and woodworking shops. These are the types of opportunities available at retirement communities.

Additionally, communities offer accommodations that are ideal for older adults, especially those who might have accessibility or mobility challenges. These communities can offer smaller accommodations if needed, one floor accommodations, support bars in the bathroom, and other important features for as we age. If you choose a continuing care retirement community like Acts Retirement-Life Communities, you also benefit from a phenomenal health services plan. Put simply, if you or your spouse ever needs a higher level of care such as assisted living or skilled nursing, it’s already included, on the same campus. No increase in fees based solely on your increase in needs. In other words, from the moment you move in, you can have a good sense of what budget you need for the next several decades.

Should You Downsize or Not – What’s Best for You?

If you keep asking “should I downsize my home in retirement” and still aren’t sure, don’t fret. It’s natural to have difficulty deciding on this major decision. You may want to talk to a financial advisor or retirement planner for some additional guidance in making your choice. They can help you assess your financial situation and make a decision that is right for you. Whether it’s aging in place, downsizing to a retirement community, or anything in between, remember: it’s your retirement, so be sure to make decisions that allow you to enjoy it to the fullest.

Ready to downsize for retirement? Gain valuable tips and expert insights on how to downsize your home effectively before and after you retire. You can also explore any of the 27 beautiful Acts Retirement-Life Communities throughout the East Coast.