Many baby boomers are relocating and downsizing in retirement. In 2015, 31% of homes sold in America were purchased by senior citizens, according to All Worth Financial. Another study shows the longer adults live in their homes, the less likely they will move. Although moving out of your family home sounds unsettling, there is a chance that once you get older, you may not be able to navigate throughout your home like you once did.
If you live in a large home or wish to save money, you should consider downsizing, which is described as making something smaller (like your home). There are many benefits to downsizing, but here are the top five reasons to downsize after retirement.
1. Your home has vacant space
If you have a large family, you likely live in a larger home. Once your children are all moved out, your big house isn’t necessarily needed anymore unless they stay with you often. If not, you could consider downsizing after you retire. There is no reason you should pay for a home with an abundance amount of space you are not using.
Five bedrooms and three bathrooms are not needed in retirement unless you plan to occupy each room. If you have paid off your mortgage on your current home, that is great. However, you are still spending money on property taxes, home insurance, and, not to mention, heating and cooling your vacant home. You could be putting that money towards leisure or saving in retirement instead of spending it on your empty home.
2. Home maintenance is more work
Between keeping up with the lawn, cleaning the home, and typical maintenance, maintaining a big house can be exhausting. The later you are in retirement, the more complex the upkeep will likely be. You can save yourself the hard work by downsizing homes after retirement.
Many seniors result in compensating people to do the work around their home. In retirement, you should spend your money on essentials and leisure instead of someone mowing your yard every two weeks, which would increase your cost of living. The less stress you have around your home, the more you can enjoy retirement.
3. Save money in retirement
Downsizing in retirement means you potentially have more money during retirement. Baby boomers nowadays are living longer than ever. Therefore, you will need an abundance amount of money in your savings. Selling your home and downsizing will play a significant part in your retirement savings.
By downsizing, you will save money in many ways, such as lower utility bills, mortgage payments, and maintenance. You will be able to cut back on many expenses, and it will positively impact you and your bank account throughout retirement.
4. You can declutter
Throughout the years, you have likely collected a lot of memorabilia. Memorabilia is excellent; however, there is a chance you never use or have looked at your collectibles in ages. Downsizing in retirement gives you a fresh start to declutter your belongings and only hold on to the things that truly matter.
Decluttering your home can be a challenge, as many of these objects and belongings are sentimental. However, when you downsize, you cannot take all of your items with you. When packing up your things, you have the opportunity to put your stuff into categories, such as “Store, donate, throw out.” You will likely enjoy this fresh start and ease up some anxiety you have had around the house.
5. Easier to navigate inside the home
As you age, you may not be able to move around like you use to. For example, 19 million people report having mobility issues, with the mean age being between 59 to 67 years old, according to Home Care Assistance Anchorage. If you live in a two-story house or have stairs at your entryway, it may be difficult to navigate throughout your home.
When you downsize after retirement, you are less likely to have a fall due to decluttering your home and getting rid of unneeded furniture. Downsizing allows you to locate things within your home easier and make navigation simpler on you mentally and physically.
Downsizing can bring excitement to retirement as you take on new ventures finding yourself a new place to spend out your years. There are many benefits to downsizing, and if any of these five reasons intrigued you, you should get to looking for your new home and enjoy the savings you are about to encounter.