Most of us live by the mantra that bigger is better and, when you have a young or growing family, it is certainly true that the more space you have the easier things will be. However, as we begin to age and approach retirement, it is the perfect time to downsize your home.
Moving into a smaller home for their twilight years is the retirement dream for many. Here are just some of the top reasons to consider.
1. Reduce Your Expenses
One of the main benefits of reducing the size of your home is that you will also reduce the size of your expenses: smaller homes cost less to heat and power, and also have smaller property taxes whilst costing less to maintain.
The less money that you need to live on, the fewer retirement savings you need to have, meaning that downsizing will enable you to free up some funds. You can then spend these extra savings on improving your quality of life, rather than just on heating extra rooms in a large home you don’t need.
2. Live a More Comfortable Lifestyle
Moving to a smaller home will also enable you to free up some of the equity in your home, giving you extra cash to fund your long-term retirement goals. Whether you want to take an overseas vacation, buy that pricey golf club membership, or simply have enough spare cash to have brunch with your girlfriends every day.
If your primary concern is in having the equity you need to fund your retirement rather than retaining the full value of your property, you could also consider a reverse mortgage to supplement your existing income. Always check with your financial advisor before making any big decision.
3. Less Maintenance Hassle
Finally, the smaller your living space, the less maintenance and home improvement work you will have to undertake. With the average American woman spending 2 hours and 15 minutes a day on household chores, freeing up this time will certainly be beneficial.
If you want to spend your retirement mowing a huge lawn or cleaning your deck every weekend then downsizing might not be a primary concern. But if you would rather spend more time having fun and less time on household chores then downsizing will certainly free you from the hassle (and the expense) of regular home maintenance.
Obviously, there are many emotional considerations to letting go of your large family home, particularly if this is the home where you raised your children. But from a purely financial point of view, it certainly makes a lot of financial sense to downsize for your retirement.