Through research conducted by Retirement Move, it has been found that the ideal age to downsize is 64. This age allows you to make the most of your home and avoid the stress and physical labor of moving. When considering downsizing, it is important to plan for the future. While you may be able-bodied now, what will happen 15 to 20 years from now? According to Helen Guajardo, a real estate expert at KW San Antonio, medical issues or disability are some of the most common reasons why people choose to downsize. Climbing the stairs of a two-story house multiple times a day may become too much.
A one-story house or apartment may be more suitable for your physical abilities in the long run. As adults reach their 50s and 60s, many are ready to reduce their size. This often means buying a townhouse to reduce maintenance or a smaller one-story house to minimize climbing stairs. Downsizing to a smaller, less expensive home before retirement can make sense.
Don't wait until you're 50 or 60; move at 40, said Richard Arzaga, certified financial planner and CEO of Cornerstone Wealth Management in San Ramon, California. If the goal is a stronger financial position when you reach your older years and retire, the sooner you reduce your size, the better off you will be. Many people dream of funding a large portion of their retirement by selling their current home, buying a smaller home, and investing the difference in income. However, this often yields fewer benefits than expected.
It is best to start the downsizing process as soon as possible so that you have time to properly organize your home without feeling overwhelmed. A general rule of thumb is that you'll want to start at least 3 months before you plan to move, but the sooner the better. The development and those who want to live there are part of a growing interest in reduced housing and clustered housing, said owner Bruno Schickel. If these home features have become obstacles for you, now is the right time to downsize to a safer floor plan.
If you have little or no savings and know that retirement will be overstated, downsizing could be essential, Arzaga said. Additionally, look for a real estate agent who is used to working with older couples who are downsizing their staff when looking for a new place. When downsizing your home, it is important to find a place that meets both your current and future needs. To achieve this outcome, it is important to avoid any unexpected difficulties that make downsizing so risky.
Financial problems are another reason why some consider reducing staff in old age. People who are going through a divorce may no longer need a large house without a full-time family and it may be cheaper to downsize to a more affordable home. In addition, by reducing the size, the property tax bill could also be cut depending on your choice of community. If any step in the reduction and relocation processes is too much or you don't have time, seek help.
If you plan ahead and reduce your workforce five to 10 years before you retire, you can save thousands of dollars each year. In addition to starting the downsizing process, it is important to keep your home free of clutter and things you no longer need. By 2040, aging baby boomers will bring the population aged 80 and over to 28 million according to a housing survey conducted by the Joint Center for Housing Studies at Harvard University. No matter your age, make sure your house is clean, maintained and paid for whether you do the work yourself or pay someone else to do it.