Downsizing is on the rise. People who are nearing retirement are downsizing to boost their retirement income.
Recent research has found that empty nesters in the UK could potentially unlock about half a million—or £498,687—if they downsize from a five-bedroom house to a three-bedroom one. Things are pretty much the same in the US and other countries.
Downsizing is a fantastic way to lead a simple life, but it isn’t as straightforward as it seems.
Whether you’re looking to move into a cozier home, reduce your expenses, or just lighten the load, having a clear plan can make all the difference.
Here, we’ll share a few actionable strategies that will make downsizing near retirement a breeze.
Downsizing before retirement is more than just moving into a smaller house—it’s about simplifying your life for the better.
As retirement nears, most people realize that they don’t need the extra space they’ve lived in for years. As kids move out, maintaining a large home can feel like a chore.
Downsizing is also a smart move financially. Selling a larger home often frees up equity. You can either invest in your retirement fund or enjoy more flexibility in your spending.
Kay and Jim Schlembach, at ages 62 and 72, respectively, decided to downsize from their 3,200-square-foot contemporary to their 850-square-foot condo. They made the decision because they didn’t want to burden their kids and wanted to take care of their aging process and living arrangements themselves.
Ultimately, downsizing can set you up for a more relaxed, manageable lifestyle.
Here are a few strategies that can help you downsize effectively without overwhelming or stressing you out:
Don’t wait too long to start downsizing. Retirement will knock on the door before you even know it, and you will feel rushed and overwhelmed.
Start early. You don’t have to wait until you’re a year away from retirement to begin this process.
Bernie Ramsay, 57, downsized at the age of 54 along with his wife. He sold his five-bedroom family house in the Sydney suburb of Menai and moved to Woonona, seeking a better lifestyle.
Starting the downsizing process well in advance allowed Bernie and his wife to mentally and emotionally prepare for the changes ahead.
Be like Bernie. Whether you’re in your 50s or 60s, plan to downsize well before you feel the urgency. This will allow you to focus on the joy of transitioning into a new phase of life rather than feeling burdened by the logistics of moving.
The 2024 U.S. real estate market is a seller’s market. That means you’re in a strong position if you’re looking to sell your home in this booming market
When deciding how to sell your home, you have plenty of options.
You can work with a real estate agent. They can provide insights into pricing strategies, help with staging, and manage negotiations to ensure you get the best deal. But remember, you will have to pay them a commission.
Or list your home on real estate websites. If you go this route, upload high-quality images of your space. That will attract buyers to your property.
Another option is to sell your home to a local cash buyer who will buy it as it is. That is, they will pay you cash for your home without requiring any repairs or updates. This can be a quick and hassle-free option, especially if you’re looking to move swiftly or avoid the complexities of traditional selling methods.
If you own a home in the San Francisco Bay Area, for instance, you might face challenges when it comes to selling it.
A new real estate report shows that sellers are struggling to find buyers for their homes in several Bay Area counties. In one Bay Area, almost 70% of homes didn’t sell for more than 30 days.
Cash home buyers can prove invaluable in such a scenario. Just make sure you choose a reliable cash home buyer.
John Buys Bay Area Houses advises homeowners to research cash home buyers online. According to them, you must look at reviews and testimonials of previous clients to gain insight into the buyers’ efficiency and reliability.
If you need to sell your house fast for cash in the SF Bay Area - click here for more details!
The most stressful part of downsizing? It’s decluttering.
Holding onto stuff you’ve accumulated over the years can feel comforting, but those things can become burdensome as the years go by. It’s better to part with items you no longer need or use.
Decluttering, especially if you have been living in the same place for decades, can be difficult. Get down to it as early as possible—ideally, a few months before you make the move.
Star Hansen, a professional organizer, says don’t bite off more than you can chew. That is, take it one step at a time. Tackle one room, one closet, or even just one drawer at a time. Maybe you start with the guest bedroom that rarely gets used or that overflowing kitchen drawer.
Follow the “one-year rule” when decluttering. If you haven’t used or thought about an item in over a year, it’s probably time to let it go.
Let go of non-essential items like outdated furniture and old appliances. Consider donating, selling, or gifting them to family and friends who may appreciate them.
Parting with sentimental items is often difficult. But don’t hold on to all of them. Keep a few and take photos of the rest. This will allow you to preserve the memories without holding onto the physical objects.
Renting a storage unit temporarily would be wise when you’re downsizing. It can help you manage items you’re not quite ready to part with, like family heirlooms or seasonal decorations.
But here’s the thing: those temporary solutions can become permanent if you’re not careful.
Go the storage route, but be intentional about what goes in there, and set a timeline to revisit those items.
Use it as a temporary measure while you sort through your belongings. If you find yourself filling up a storage unit just to avoid making tough calls about what to keep, it might be time to reevaluate.
Downsizing near retirement is all about creating a simpler, more enjoyable lifestyle for yourself. It can seem like a task, but these strategies will make the process smooth and stress-free.
As you navigate this change, focus on the benefits: less maintenance, reduced expenses, and more time for what truly matters. Embrace the process as an opportunity to let go of the old and make room for new adventures.
