As you plan for retirement, you’ll need to consider everything from your financial situation to where you live. While you could remain in your current home, many retirees choose to downsize. A few reasons to downsize when retiring include less maintenance, upkeep, and cheaper bills. First, however, you must ensure you’re correctly downsizing your home.
So, with that in mind, let’s look at the steps you should take to downsize your home when retiring.
Chances are you’ve been preparing for retirement for a while and have many plans. However, you must also consider your health and how that could affect your situation. For example, if you’re trying to travel a lot during retirement, will you be able to walk and hike, or will you need mobility assistance?
Step One: Consider Your Current and Future Needs
Even if you’re in the best of health right now, age can cause various problems. Eventually, you’ll likely have to move into assisted living or get someone to move in to help you around the house. So, consider these elements when deciding when and where you’ll be downsizing.
Step Two: How Much Can You Afford?
The golden question about retirement is how much money will you have, and how long will it last? Ideally, you’ll have investment funds to keep earning interest during your retirement years, so you don’t have to eat up your savings. Here is where downsizing can be a benefit since you can potentially save money on property taxes, mortgages, or rent prices.
An alternative is to move into a retirement community where they provide many amenities. Although these communities can be somewhat expensive, you’ll save money in different areas (i.e., meals and transportation costs).
Step Three: Where Can You Cut Costs?
As you’re calculating your retirement income and expenses, you should pay attention to different ways to mitigate your bills, such as:
- Living With Roommates – Even if you’re retiring with your spouse, you may want to get a roommate or tenant to help split utility bills and mortgage payments.
- Moving to a more affordable Part of Town – While you don’t want to live in an unsafe area, some neighborhoods are much pricier than others. Figure out what you’re comfortable with that fits within your budget.
- Working Part-Time – Many retirees work part-time jobs, so they have something to do in their spare time and to avoid dipping too much into their savings. If you’re thinking of working, will you need to commute to a job, or do you plan to work from home? Your new location may influence your decision more than you realize.
Step Four: Reducing Your Clutter
Once you decide to downsize, you must also get rid of many of your current belongings. It’s best to shed excess clutter as soon as possible so you don’t have to transport anything you don’t need. While garage and yard sales can help you recoup some money, you may need to donate many items (usually clothes) to get rid of them.
Get Moving Help for Your Retirement
Moving your stuff by yourself seems far less appealing as you enter your golden years. Fortunately, we can help you transition to a leaner, more efficient lifestyle. Contact us for a free quote!