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If you’re ready to retire, you’re probably thinking about downsizing. It’s something you definitely want to do right so you can make the most of this special time in your life, enjoying all the freedom, flexibility and comfort you can. We’re here to help you make the transition to a pared down life with our guide to downsizing for retirement the smart way. Take note of these do’s and don’ts as you downsize.

Do: Cut down on everyday costs

When you think about downsizing, you may think about selling your home and moving into a smaller one. That’s a good idea, but it’s also important to downsize your daily expenses where you can. This can involve little everyday lifestyle changes that add up in your bank account – like buying fewer meals out, less alcohol, and cancelling unnecessary services and memberships etc. These changes can be minimal enough that you don’t really notice them day to day, but can add up to a much more stable financial future for you.

Don’t: Reduce your costs to the extreme

Reducing your costs and creating a budget is great, but it’s important to not go overboard on cost cutting. Being too frugal can be stressful and suck a lot of the joy out of your life.

Do: Make room for travel and experiences

Retirement doesn’t have to be boring and financially fraught. Retirement is a great opportunity to get out of your comfort zones, travel to and explore places you’ve never been before, enjoy time out with friends and family, and tackle a bucket list of experiences. These kinds of things aren’t always cheap, so you’ll likely need to have adequate funds saved in order to do the activities you want to enjoy, plus pick and choose what you want to do most so you don’t overspend. By adhering to a more modest lifestyle day to day, you can save more for special excursions and activities.

Don’t: Forego enjoyment

You may be tempted to pass on exciting or more extravagant experiences in retirement because they’re too expensive, you feel past your prime, you don’t have a companion etc. But that’s a mistake! Now is the perfect time to step out of your comfort zone and take a risk. Your commitments are reduced, you have the time you need, and if not now, when? Life changing experiences are always worth the investment – they’re priceless.

Do: Save for the unknown

While we do encourage you to make the most of the time you have in retirement by investing in fulfilling experiences like travel, we do feel strongly that it’s important to counter balance that with putting aside savings for a rainy day. Life and health can change dramatically – and extremely fast. You never know if you or someone close to you will suddenly need financial support for care, housing, food etc. It’s important to save for that possibility so you’re not caught empty handed. Even if you have no dependents, at the outset of retirement it’s virtually impossible to predict how long you will live and how many years you’ll need to stretch your savings.

Don’t: Only save for a rainy day and forget about your time in the sun

Don’t sacrifice your happiness for the illusion of future stability. It’s all about balance. Saving for a bad day (that may never come) may seem practical and prudent, but if it’s done at the expense of your enjoyment of your golden years, then it’s a bad investment. 

Do: Think about renting

When you think of downsizing, your primary thought is likely selling your home and moving into something more modest. If you own a home and want to downsize to a smaller one, you could sell and buy something smaller or you could rent. Renting your home can be a great option in retirement. Not only can it be more cost-effective, but it can also make your life a lot easier as you’ll have fewer daily responsibilities (like maintenance, repairs and landscaping etc.).

Don’t: Rent a house

You may be tempted to rent a house, but this isn’t always a great choice. If you rent a house, you may be faced with the same tedious and costly responsibilities you had as a home owner such as property management, maintenance, repairs and landscaping. This sucks your precious time and money for a property you don’t own. You may also have or develop mobility issues as you age, so having to deal with stairs is an issue.

Do: Rent an apartment

Apartment rental can be a much wiser investment in retirement than house rental. Depending on what you choose to rent, you could get the space you need for a price you can comfortably afford, without the hassles of maintenance, repairs and landscaping. It can also be a better option if you have or may develop mobility issues as you’ll quite possibly have access to an elevator and ramps etc. It’s also easier to find apartments in downtown cores where entertainment and amenities are right at your fingertips.

 

We hope these do’s and don’ts help you strategize as you downsize for retirement.

Looking for a new apartment to downsize to? Panoramic Properties would love to welcome you home. Please visit our website to browse our available apartments