The Ultimate Guide For Downsizing & Moving Into A Retirement Home

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The Ultimate Guide For Downsizing & Moving Into A Retirement Home

As you think about getting ready for retirement, other than making sure you understand the veterans’ benefits that are available to you, you most likely will want to think about downsizing to a lifestyle that will better accommodate your needs as you get older — minimizing your belongings, reducing home maintenance demands, and cutting expenses. But paring down your life doesn’t need to be overwhelming, there are some tips to follow to make sure the process is as smooth as possible. 

Commit to a serious downsize

If you’ve lived in your home for many years, it may be difficult to think about leaving it and downsizing your home. For a true downsize, that will allow you to age in place, you will likely move to a home that is considerably smaller, such a one-level homes, apartments, and condominiums. The key is to commit to making a change that will serve you in the long run.

Determine your budget

Downsizing for retirement doesn’t automatically mean fewer costs, as moving is expensive. However, if you proceed with a smart budget in mind, your lifestyle change can also accommodate your retirement budget — when cash flow shifts (in many cases) to a fixed income. It’s best to work with a financial planner to get an accurate picture of your retirement forecast. To get a ballpark idea you can use a retirement cost calculator (like Vanguard’s cost worksheet).

Know your lifestyle goals

Not all retirement lifestyles are the same. Without the demands of work, you’ll need to think about how you’re going to spend your time. According to a study by the Transamerica Center for Retirement Studies, 53% of retirees spend more time with family and friends, which means you may want a home to accommodate gatherings. Or, if you are part of the 33% of retirees who spend most of their time traveling, a low-maintenance abode close to a major airport of freeway might be your top pick. 

Downsize your stuff

Long before you get serious about moving to a different home, you can get ahead of the game by limiting your belongings to essentials.This task isn’t easy and it’s a good idea to get started early because most people have more stuff than they realize — the average American household has 300,000 things. One technique that is known to be effective is Marie Kondo’s KomMari method. To follow this process, begin with one category of items, such as mugs, and then discard any of them which don’t spark joy. You may get caught up on sentimental items, which can slow you down. To avoid that pitfall, set aside a box for “later” for anything you aren’t sure about, to help you move quickly through each category. 

Make a strategic plan and hire a professional

Timing is everything when you downsize for retirement and working with a real estate professional can help you optimize the best moment to make the move. If you sell your house when the market is low, you risk leaving money on the table. In a competitive market it may be difficult to land the ideal home within your budget. Talking with a real estate agent from HomeLight can help you get started.

If you follow some of these suggestions, you’ll be well on your way for a carefree retirement in a home that suits your new lifestyle.