Call it right sizing

It took us eight years after I retired to sell our home of 45 years. I resisted not so much because of memories or an attachment, but because of the extreme hassle associated with selling and moving.

The final decision to move was not based on size or costs, but stairs and the fact there was no facility on the first floor. My wife simply could not handle stairs from the basement to the third floor.

I grew up in an apartment so I was never a DIY person around the house and I saw no joy in mowing the lawn, raking leaves or gardening.

We finally sold and moved – 7/10 of a mile away, but we didn’t downsize, we rightsized into a 2,000 sf condo virtually the same size as our house. Nothing else changed – same shopping, church, doctors and friends. Our children and grandchildren are all still an hour or less away.

As with many things, we are not typical.
Sometimes downsizing means saving money, relocation, being closer to family. For some retirees it is a necessity.
Sometimes it saves money, but not always.

Here is the standard view of downsizing.

Downsizing in retirement refers to the strategic move of relocating from your primary residence to a smaller, more manageable dwelling. This shift typically involves transitioning from a larger, single-family home to a condominium, townhouse, or even an apartment. The core motivations behind downsizing are two-fold: financial benefit and lifestyle simplification.

Financially, downsizing unlocks the equity you’ve built up in your current home. By selling it, you receive a lump sum of cash that can be used to pad your retirement savings or generate additional income streams through investments. Furthermore, downsizing reduces your ongoing housing costs. Smaller properties generally translate to lower property taxes, homeowner’s insurance, and utility bills. There’s also the elimination of expenses associated with maintaining a larger property, such as yard work, pool cleaning, or roof repairs.

Downsizing may save money, but it’s not guaranteed. Our property taxes are the same and our monthly HOA fee offsets what we routinely spent on all forms of house maintenance.

Beyond the financial perks, downsizing offers a gateway to a more streamlined lifestyle. A smaller living space necessitates less cleaning, organizing, and overall maintenance. This frees up valuable time and energy that you can then devote to pursuing hobbies, traveling, or spending time with loved ones. Downsizing can also make sense for retirees whose physical capabilities may have changed. A smaller, single-story dwelling eliminates the need to navigate stairs or maintain extensive landscaping, promoting safety and ease of movement.

Think it through before you jump. If you are relocating to be near family, make sure they plan to stay put or you may be stranded. Do you easily make new friends?

Ultimately, downsizing in retirement is a strategic decision that can significantly enhance your financial security and well-being. It allows you to trade the burden of a large property for a more manageable and potentially more fulfilling life chapter.

Don’t go too small. You probably want that spare bedroom, at least a bath and a half, an extra room for alone time and ideally some outdoor space like a balcony if in a building condo – ours is 8×20 feet.