A Senior’s Guide to Downsizing

As you approach retirement, you may want to consider downsizing your home before it's too late.

A Senior’s Guide to Downsizing

As seniors approach retirement, downsizing is on many of their minds. Now that you’ve been working on your retirement plan, you may find that it’s a smarter decision—financially and otherwise—to downsize sooner rather than later. While many seniors wish to stay in their house or neighborhood that is filled with memories, it’s important to make the smart decision to downsize while you are still able to. We’ve compiled the top reasons why you should downsize.

Your cash flow after paying your monthly mortgage is low

If you find that your mortgage will or does take up most of your monthly income in retirement, it’s time to move. Retirement has you on a strict, fixed budget that you’ll need to follow. Don’t let your monthly housing payment take up most of your income. While you may feel like you have the money to pay for it now, consider what your finances will be like once you start withdrawing from your retirement funds instead of your normal paycheck.

When it comes to house payments, many seniors decide to downsize for retirement and use the equity from their home to buy a smaller home in cash—no mortgage payment required.

You are falling behind on home maintenance

Home maintenance is another reason why seniors decide to downsize. Staying on top of home maintenance can be difficult even when you aren’t at retirement age, and becomes more difficult as we get older. Many decide to hire help to keep up with maintenance, from yard work to housekeepers, but for some that may not be in the cards. Outside home maintenance help can be expensive and it may not be possible to afford once you are on a fixed income.

Home maintenance isn’t just about looks. Necessary repairs that go untreated for too long can become a health hazard for those living in the home. Anything from faulty wiring to leaks to mold, if those issues aren’t addressed quickly then disaster may strike sooner than later.

You have health issues that are making it difficult to get around the house

Unfortunately, it’s a fact that as we get older we are more likely to succumb to health problems that can make it hard to walk, see, hear, and get around like we used to. It’s a good idea to downsize your home if:

• It’s hard to get upstairs.
• Kitchen cabinets and other storage areas are hard to get to or reach.
• Toilets and showers are hard to get into.
• It’s increasingly difficult to keep your home clean.

You have unused space

Many seniors prefer to downsize when they realize that they have a lot of unused space in their house. Where they once may have needed the space for entertainment or growing kids, rooms that sit empty are unnecessary expenses and labor. If you’re concerned about not having space for the grandchildren or other family members to stay, consider moving closer to family so that you are able to visit more often.

Downsizing to a house with no unused spaces can also help you determine what possessions you’d like to keep, give to family and friends, and donate. It’s the perfect opportunity to go through everything you’ve collected over the years and decide what’s important to keep and what you can toss, gift, or donate.

What age should seniors downsize?

It depends—to an extent. It’s something that you should consider and plan for before retirement hits, but depending on your income, overall health, and size of your home, the timing will be different for everyone. Consider the tips above and if you feel like you need some downsizing advice, Senior Finance Advisor can match you with a retirement advisor today.

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