{"id":7448,"date":"2019-01-30T08:11:45","date_gmt":"2019-01-30T16:11:45","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=7448"},"modified":"2025-10-10T12:26:54","modified_gmt":"2025-10-10T19:26:54","slug":"downsizing-for-retirement","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/downsizing-for-retirement\/","title":{"rendered":"Downsizing for Retirement: 8 Tips to Plan Your Move With an Eye on the Future"},"content":{"rendered":"

Most retirees are hesitant to downsize. A study by the Society of Actuaries shows that nearly 64% of retirees wish to remain in their current home<\/a> throughout retirement, while 44% of pre-retirees agree. It\u2019s comfortable, it\u2019s yours, and it\u2019s home. <\/i><\/p>\n

But staying in a large family home into retirement becomes costly and makes it difficult to age in place. Nearly 30% of retired homeowner expenditures are housing-related<\/a>, which includes taxes, insurance, upkeep, and utilities. If you can get over the emotional hump, you may find that making it to the other side of downsizing is well worth the benefits, including tapping into your home equity. (For homeowners over the age of 65, that\u2019s no small chunk of change at a median value of $140,000<\/a>.)<\/p>\n

If the thought of this big move doesn\u2019t exactly excite you, follow this downsizing for retirement advice to make the process more manageable, organized, and 100% worth it in the end.<\/p>\n

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Source: (Karolina- Kaboompics\/ Rawpixel)<\/figcaption><\/figure>\n

Commit to a serious downsize.<\/h3>\n

In order for downsizing to pay off, you have to actually<\/i> downsize your home. This means a significant decrease in square footage and belongings at the end of the process.<\/p>\n

\u201cI have had many clients say they want to downsize and inevitably they downsize 100 square feet. They end up moving into a house that\u2019s just a little bit smaller,\u201d says Steffany Farmer<\/a>, a Savannah, Georgia<\/a> real estate agent who has sold over 70% more properties than the average agent.<\/p>\n

Downsizing has more than just financial benefits for retirees, according to Lori Thomas of SeniorAdvice.com<\/a>, a site dedicated to helping people understand and find the best senior care for their loved ones. Smaller homes are easier to maneuver and manage through retirement.<\/p>\n

\u201cMost people don\u2019t think of the long-term when downsizing. Maybe they don\u2019t think twice about moving into a place with stairs, but over the long-term stairs might become difficult with old age,\u201d says Thomas. \u201cAnd it\u2019s generally more expensive to heat and cool a two-story home.\u201d<\/p>\n

Calculate how much housing you can afford.<\/h3>\n

Moving into a smaller house doesn\u2019t mean you\u2019ll automatically cut costs. If you move to a newer property or one in an expensive area, your costs could increase significantly.<\/p>\n

Before you sell your house to downsize for retirement, make sure you move into housing that saves you money. Especially since as you transition into retirement and your cash flow shifts.<\/p>\n

Here are some useful tools to calculate the housing you can afford.<\/p>\n

Use a retirement cost calculator to determine how much cash you\u2019ll need to live comfortably through retirement.<\/h4>\n