Come a certain age, retirees are bound to face the question of whether or not to downsize. After all, a three- or four-bedroom home is an essential investment when you’re raising a young family, but when once the kids have graduated college, the extra space is just that — extra space. When is the Right Time for Seniors to Downsize?
There are a number of reasons to consider downsizing. For one, it makes taking care of your home much more manageable. For another, when the kids have moved out, a smaller home can feel more comfortable and cozy. When is the Right Time for Seniors to Downsize?
But one of the most compelling reasons to downsize — and downsize early — is the financial benefits that come with a move to a smaller home. When is the Right Time for Seniors to Downsize?
Making the Most of Your Nest Egg
It’s everyone’s goal to make the most of their retirement savings. But not everyone considers how much further a nest egg can go with a downsize to a smaller home, or even a rental unit or condo.
As the Wall Street Journal noted in 2014, downsizing to an apartment with a higher monthly rent than your mortgage and property taxes can, in some cases, actually save you money in the long run. That’s because the costs of owning a home are often hidden, tied up in constant maintenance projects that you’re on the hook for.
While it takes some number crunching, it’s worth looking into how much you can save by making the switch from a family-sized house to a smaller home. One striking thing you may find is how quickly the yearly savings add up, giving you plenty of bumper space for your retirement savings.
Moving While You’re Able
Another reason to move earlier rather than later in retirement is the physical demands that come with owning a home. A larger space is often tougher on your body than a smaller one, especially when it comes to cleaning and day-to-day tasks. While you can get help with these activities of daily living, services like home care or professional cleaning are an added cost that you should factor into your financial plans.
But it’s not just the way your home makes demands on your body that you need to be concerned about. As physically taxing as a large home may be, it pales in comparison to the challenge of a big move. By putting off downsizing, you risk delaying your move until a time when its far more difficult than it needs to be.
That’s why some surveys indicate that the right time for downsizing is right around retirement age, a time when many adults first report having difficulty living in a bigger space, but when they still have the physical and emotional energy to handle a move.
Visiting Angels home care assists seniors with tasks of daily living in the comfort of home — big or small. For a no cost estimate and care consultation, call your local Visiting Angels home care agency.
