Retirement Downsizing May Not Be Right For You

You’ve raised your family, they’re out of the house and doing well on their own. You look around at all the empty space and wonder if you really need it. Maybe a smaller home is the right choice, but it’s also possible that retirement downsizing may not be right for you.

Retirement downsizing to a smaller home may not be right for you.

Retirement downsizing may not be right for you

There are many benefits to downsizing, but there are some drawbacks as well:

With the real-estate market still fragile, many baby boomers are getting a lot less than they expected for the old homestead. All too often, they have little cash left over after buying a new place, and their monthly expenses don’t fall as much as they thought—or may even rise instead.

Then there’s the emotional impact:

Many baby boomers are finding they lack the stomach or stamina to dismantle their lives. They can’t bear to sort through or part with all those boxes in the basement, or argue with the adult children who want to keep the house where they grew up.

And, if you’ve gotten used to lots of space, you could be in for a shock.

One of the biggest problems people encounter after downsizing is also one of the most obvious: It can be crowded.

Many retirees look at a smaller, less expensive living space as a solution to their retirement financial problems. It can help, but you’ll have to make some sacrifices, so retirement downsizing may not be right for you.

Click here to read more about retirement downsizing.

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