Is it better to Downsize your Home after Retirement?
Retirement is something a lot of hardworking women and men look forward to because it signifies a new chapter of their lives when they can sit back and reap the dividends of their years of hard work. But there’s a particular aspect of retirement most people don’t look forward to and that’s the loss of a steady paycheque.
So in the event that you are retired and your income isn’t as buoyant as it was while you were working, is it a good idea to hold onto the big house you were able to afford or barely afford maintaining while you were working? Maybe not. Let’s explore why not.
- As a retiree you have less of an income and will probably thus be less able to finance the upkeep of a large house. Bills for electricity and water in a large house are far more than what you would have to pay if you were to downsize to a smaller home that provides all the comfort you need.
- By the time you are retired, chances are all your children have grown up and have moved on to lives of their own. This means you are living alone with maybe your spouse in a home with more rooms than you need. The fact that you have to care for these rooms that are used only occasionally is more of a hassle than you need when you are retired. So why not downsize to a house with less rooms and less echoes.
- By the age of retirement, your body isn’t as strong as it once was which means you probably can’t personally do the necessary chores to maintain a large abode. Opting for a downsized home with less space and less to clean and keep together could be better for you.
While you might choose to hold on to your big old house where you made memories with your family, you have to consider the financial implications. Instead of shackling yourself to a house that’s going to financially cost you more than you can afford, why not sell it and move to a smaller property? By buying a smaller house with the proceeds of selling your larger house, you will likely have a significant amount of money left over that will tide you through your retirement years and maybe even finance vacations and other leisures.
Share your thoughts in the comment section if you would or wouldn’t consider downsizing when you retire?