SPRING SPACES SAVINGS
HOME IMPROVEMENT SPECIAL
VARIABLES TO CONSIDER BEFORE DOWNSIZING A HOME IN RETIREMENT
Downsizing a home might be a pathway to more fi nancial freedom for many retirees.
Seniors considering such a move can consider a number of variables to determine if moving is in their best interest.
Aspiring to save money in retirement
makes perfect sense. Once professionals
call it a career and are no longer
drawing a paycheck, cutting back on expenses
can be a sound decision that ensures seniors
won't outlive their money. And housing
remains a signifi cant expense, even for retirees
who own their homes and no longer have
monthly mortgage payments to make.
Many retirees seeking ways to save money
consider downsizing their homes. According
to the National Association of Retailers,
12 percent of people between the ages of 60
and 69 who move indicated their home was
too large, and that percentage grows among
movers between the ages of 70 and 78 (16
percent) and those who move after turning
79 (18 percent). Downsizing a home in retirement
can seem like an ideal means to saving
money after calling it a career, but individuals
pondering such a move should consider
a number of variables before putting their
homes up for sale.
Costs
Downsizing may help retirees lower their property
tax obligations, reduce their utility bills
and lower their monthly mortgage payments
(for those who are still paying off a mortgage
on their current homes), but that does not
mean moving will not incur new expenses that
render such savings moot. Expenditures like
closing costs, real estate commissions, moving
related expenses, and capital gains taxes
can quickly add up. In addition, retirees who
currently do not pay homeowner's association
fees may be subjected to such fees when moving
into a new home, and those fees can be
substantial and hard to avoid. Indeed, recent
data from the U.S. Census Bureau indicated
that 71 percent of new constructions in the
western and southern United States were built
in communities with homeowner's associations.
Prior to downsizing, current homeowners
should calculate all of the costs related to
relocating, including anticipated HOA fees, to
see if downsizing is to their fi nancial benefi t.
Social benefi ts
Another variable that merits consideration is
the impact that moving can have on seniors'
social lives. The World Health Organization reports
that more than one in 10 seniors experiences
loneliness, which can adversely affect
their physical and mental health and potentially
reduce their life expectancy. Retirees
currently living in communities in which they
are socially active should weigh the effects of
leaving that social network behind. Retirees
also can weigh the benefi ts of moving to 55
and over communities where they will be surrounded
by people at a similar stage in life,
and how living in such developments may
improve their social lives.
Adjusting and adapting
Downsizing will require an adjustment period
and a willingness to adapt. Retirees may
have an emotional attachment to their current
homes, and leaving that behind can be a
diffi cult adjustment. Adapting to life in a new
community also can be challenging, particularly
if retirees are moving from areas where
there are no restrictions regarding their properties
to communities where homeowners'
associations must approve of any changes to
properties. Moving also may require fi nding
new health care professionals, which can be
a particularly diffi cult adjustment for retirees
who have spent years building a strong rapport
with their current health care team.
www.ALLISLANDMEDIA.com Spaces - Spring 2026 Edition 818