Down-scaling for Retirement – Do it right. Many people whose kids have grown up and left home will, at one time or another, find themselves looking around their now rather too big for them home and ask themselves; why are we still here?
The fact is though that letting go of the family home, a place you worked so hard to get in the first place, and leaving behind a familiar neighbourhood, a circle of friends you are oh so used to and years’ worth of happy memories is very hard. However, down-scaling from an empty nest can actually be a big key to a more comfortable retirement a few years down the line.
Downscaling for Retirement – What does it Mean?
Not quite what it sounds like perhaps. Some hear the term negatively, as if it is suggesting a downgrade in lifestyle. That’s not the idea though. The concept of down-scaling is about simplifying your life, not reducing your standard of living.
As you get older and retirement looms, simplicity is increasingly appealing. A large house is a nuisance to maintain at the best of times and it can become a real hardship as you age. And all of that stuff, all of the accumulated possessions that no longer really have much of a purpose become a nuisance. So often down-scaling makes a great deal of sense. Here are some tips , for down-scaling the right way.
Down-scaling for Retirement
1. Get the Timing Right
The best time to start thinking about how you want to live your life after you retire is before you actually do so. This is partially because the older you get the harder it is to move. We’re not suggesting that you start looking for a real estate agent the minute your youngest child heads off to university or strikes out on their own in another way, emotionally that would probably be a little too much (for you and your child). But five or even ten or so years beforehand? That can be a great time to start making plans to move on and simplify both your living arrangements and your life.
Down-scaling for Retirement
2. The Logistics of Selling Your Home
Apart from the emotional side of things – selling your home really can be an emotionally tough experience as it’s become a huge part of who you are – there are some basic logistics to be taken into account as well. What are you going to do with the money from the sale? Are you going to sink it all back into a smaller place located elsewhere? Or are you going to really go smaller, invest in a less expensive new home and then put some money into investments that will make your retirement financially more comfortable too? Here, working with an investment adviser as you plan can make a lot of sense.
Down-scaling for Retirement
3. Let Go of Excess Baggage
One of the hardest parts of down-scaling is parting with some of your accumulated things. Even once you sit down and steel yourself to do so it can be very hard, as so many of the items you come across probably have at least some sentimental value.
One way to help make the task easier is to enlist the use of an impartial friend who can offer a more objective opinion. It may also help if you make a plan to sell, rather than give away, or throw away, things of reasonable value. A nice eBay windfall can buy something new for your next place.
Down-scaling for Retirement
4. Assess Your New Needs Realistically
When shopping for your new home you need to assess your current and future needs. Exactly how do you want to live your daily life and what activities you are interested in pursuing when you have more downtime? Are there doctor’s offices nearby? Could your children and/or grandchildren stay over if they wanted to? If you plan on entertaining is the kitchen big enough? How about the garden? And should you need it in the future will it be possible to have the home made more accessible?
Location is another big consideration of course. How close do you want to be to family? What kind of weather are you hoping to enjoy your golden years in? Make sure you discuss all of this with your estate agent so that they can help you find the right place for you. Hopefully your retirement years are going to be long ones, so loving the home you’re living in – for years to come – is a must.
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