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- The decision to downsize to a smaller home in retirement is a highly personal one that depends largely on an individual’s financial goals and desired lifestyle. Downsizing can lower your cost of living so you can pursue a better lifestyle, it can also be a difficult adjustment and it can even impact your government benefits or tax situation.
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Jul 28, 2023 · The decision to downsize to a smaller home in retirement is a highly personal one that depends largely on an individual’s financial goals and desired lifestyle. Downsizing can lower your cost of living so you can pursue a better lifestyle, it can also be a difficult adjustment and it can even impact your government benefits or tax situation.
- Jason Notte
- Downsizing Retirement. You're supposed to live as freely as possible in retirement. That's harder to do when your old job and even your old family life keep burdening you financially.
- Your Home. Downsizing from a $250,000 house to one that costs $150,000 could increase yearly income by $3,000 and reduce annual expenses by $3,250, saving $6,250 a year, Boston College's Center for Retirement Research found in 2014.
- Your Debt. Average credit card debt in the United States sat at $6,864 in December 2023, but its thousands more among folks who don't pay off balances in full every month.
- Clothes. In 1990, the average U.S. consumer bought 40 garments a year. By the end of the 1990s, it was closer to 70. With the average American ditching 70 pounds of textiles per year in landfills, it's clear closets have room to shrink, especially with consumers spending less on clothing overall.
Considerations for Downsizing in Retirement. The decision of whether you should downsize your home at retirement depends on your individual circumstances. It’s important to weigh the pros and cons of downsizing in retirement carefully and make a decision that is right for you.
May 10, 2022 · Downsizing your home in retirement can free up cash to fund your next journey—but it's not for everyone. See if downsizing for retirement is right for you.
Nov 28, 2023 · The pros of downsizing in retirement. 1. You’ll save money. When you move to a smaller home, you could release equity that you could spend on other things like holidays, choose to work fewer hours, pay your children’s university fees more easily or even help them get on the property ladder by helping to pay their deposit.
May 15, 2024 · Updated May 15, 2024. If you’re in or nearing retirement, we’re betting the thought of downsizing your home has crossed your mind at least a time or two. Maybe you’re now an empty nester and the extra bedrooms no longer make sense. Or maybe taking care of such a big property is becoming too much work and hassle.
Jul 11, 2023 · Downsizing in retirement refers to the process of selling a larger home or property and moving to a smaller, more manageable living arrangement. Retirees may choose to downsize for a variety of reasons, including financial considerations, health challenges, and lifestyle preferences.
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related to: What happens if you downsize during retirement?It’s Time For A New Conversation About Your Retirement Priorities. Explore Merrill.
