Downsizing for Retirement: 4 Benefits and 6 Simple Tips

One of the most important decisions of your retirement years is where to live. This may require years of thoughtful planning and evaluation. To that end the belongings you’ve accumulated over the decades can become a burden, crowding your living space and making it difficult to find what you need when you need it.

For this reason it’s a good idea to re-evaluate your “stuff.” What do you absolutely need? Downsizing is a simple solution if you want to live a simpler life in retirement.

What Are the Benefits of Downsizing for Retirement?

We all end up collecting things we don’t necessarily need. Similarly, a large home that was perfect in our younger years becomes a burden to clean and maintain in retirement. Hence, downsizing has many benefits, including simplifying your post-retirement life and saving on expenses.

• Save (As Well As Make) Money While Downsizing

Reducing the size of your property as a retiree can prove beneficial. A smaller, more efficient home helps reduce your utility and annual insurance bills, as well as taxes. A smaller home also means you have less space to maintain with fewer maintenance issues. And remember the money you receive from a real estate sale.
When making your move, however, there are few things you need to keep in mind, such as the size of your new bedroom. This is important because some of your old furniture will need to fit into your new living space. For this reason, it makes sense to replace your old king size bed with a smaller, more adjustable one to make moving that much easier.

• Maximize the Available Space for a Decluttered Home

When downsizing, you can get rid of those large closets and cupboards and the unused stuff in them. Disposing of your junk in a garage or online sale will also earn you some extra money. Or you may be able to donate certain things to a non-profit for a tax write-off.

• Have A More Organized Lifestyle With Less Stress

Organizing your life gets easier when you have fewer assets to worry about. In a well-organized home that has just the essentials, unnecessary stresses are reduced and your overall lifestyle becomes that much healthier. Having fewer things has a positive effect on your physical and mental health.

• Get More Leisure Time

By cleaning and decluttering, you reduce the time you spend on overall maintenance and other household chores and increase the amount spent exploring your hobbies and passions.

6 Tips to Efficiently Downsize for Retirement

1. Downsize Your Personal Transportation

After retirement you and your spouse likely don’t need a car each. By sharing one, you reduce repair and maintenance costs, taxes and the money you spend on gas.
Hint: keep the car that gives a better mileage.

2. Recognize the Stuff You Don’t Need

In retirement you’ll likely find many pieces of furniture, appliances and even services you no longer need. Cancel subscriptions you rarely use. Renegotiate with your phone and cable companies. Do they have packages specifically designed for retirees? Make up a list of everything you own and determine which are actually necessary.

3. Organize a Garage Sale

Decluttering can be profitable as your trash can be another person’s treasure. Organize a garage sale to get rid of what you no longer need, or sell it online on Craigslist or Kijiji.

4. Strategically Plan the Timing of Your Downsizing

Choosing the right time to downsize is important to make sure you maximize its benefits. Whether you’re selling your home, car or miscellaneous whatever, downsizing at the wrong time can impact your profits. For example, if you plan to sell your house or car, you need to understand the local market. Consult a good real estate agent and similar professionals to plan accordingly.

5. Choose Between Senior Care or a Downsized Home 

Should you downsize to a smaller house that’s easier to maintain or move into a retirement home? Many factors play an active role in this decision, including your health, neighbourhood, savings and whether you’ll need assistance and companionship. A smaller home is a more independent choice but you have to maintain it and your lifestyle.  On the other hand, a retirement home is more of a community where dedicated staff help you to take care of your bills, personal needs and even groceries.

6. Consider Donating Your Junk

If selling what you don’t need seems like a hassle, simply donate it. It may not be profitable, but it can help you lead a simpler retirement, with fewer things to organize and worry about. Donate unneeded furniture to family members, give away extra appliances to neighbours, or post to your community’s Facebook page to stoke local interest.
Downsizing is an essential part of kickstarting your retirement both financially and mentally. With less to worry about, you have more time to dedicate to your health, mental wellbeing and loved ones. Effectively downsize using these tips and the benefits will become apparent.