Downsizing is much more than your average move. Like retirement, it’s about transitioning into an exciting new chapter in your life.
That raises the question: should you downsize before retirement? Or is it better to wait until you’ve settled into retired life?
Truthfully, there’s no black-or-white answer. Every downsizer is unique, and both pathways have their pros and cons.
As a real estate agent who specializes in supporting downsizers, I believe that every part of the process is personal.
In this blog post, I’ll break down a few considerations for downsizing before and after retirement to help you determine which route may work best for you.
What is Downsizing?
After living in your house for years (maybe even decades), there will come a time when it’s no longer the most practical place to live. You may have more space than you need, be tired of all the maintenance and upkeep, or simply feel ready for a change of scenery.
Downsizing is the term for moving to a smaller home in light of your evolving needs. Not only can it be a major upgrade in terms of lifestyle, but there are significant financial benefits as well.
As a personal, lifestyle-oriented transition, downsizing can complement and enhance the benefits of retirement (and vice versa).
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Downsizing Before You Retire
Let’s first look at the advantages of downsizing to a smaller home before you retire.
Hit the Ground Running
There are few moments in life more exciting than kick starting your retirement. One of the best reasons to downsize your living space before you reach that milestone is that it allows you to hit the ground running when you get there.
There’s a lot that goes into downsizing your home. From deciding on a timeline to preparing your house for sale, buying a new place and everything in between, it’s no small process.
If you decide to tackle downsizing ahead of your retirement, you won’t have to worry about it down the line. You’ll be able to focus your newfound time and energy on enjoying your retirement.
More Financial Clarity
Downsizing isn’t always strictly a lifestyle move. It can also be beneficial from a financial standpoint.
Starting with the sale of your current home, downsizing allows you to finally cash in on years of appreciation and equity growth. These returns paired with the reduced carrying costs of a smaller property can unlock a greater sense of financial freedom and security.
With that in mind, downsizing first can give you a clearer picture of your personal finances before you transition to retirement. This will be helpful as you budget and plan for the years ahead.
Downsizing After Retirement
Waiting until after you’ve formally retired to downsize your house also has advantages.
More Time to Plan Your Downsize
As a retiree, you’ll have a lot more free time on your hands. This freedom can make the various steps of downsizing easier to plan for and navigate compared to doing so while working full time.
Want to make the most of your move? Read these blogs for advice on the buying and selling processes.
You’ll Know How Your Daily Lifestyle Has Changed
You likely have an idea of what you’d like your next chapter to look like. Whether you plan to travel often, explore new hobbies, or spend more time with loved ones, retirement will mark a welcome shift in lifestyle and routine (changes that can be further enhanced by the perks of downsizing).
However, it can be hard to anticipate how different your life will look after retirement until you’ve actually taken the leap.
Waiting to downsize until you’ve adjusted to retirement can give you better insight into what your needs will be in the future, helping you make a more informed decision on where to live next.
Make a Smooth Transition With Roger Currier
As a full-service real estate agent in Peterborough who specializes in working with downsizers and their families, I’m here to help you make the most of your downsizing journey.
From start to finish, I’ll help you coordinate all the logistics, from decluttering and junk removal to repairs and ongoing maintenance, and everything in between.
Beyond your sale, I can also help you find the ideal place for your next chapter. As a local market leader, I know everything there is to know about Peterborough’s homes and communities. Whether you’re looking for a smaller house, a sensible condo, or retiree-oriented housing, I’ll connect you to the properties best suited to your needs.
Ready to start your downsizing journey? I can help!
Reach me at 705-927-2774 or email roger@teamcurrierhomes.ca
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