Most of your life, you’ve had to live in a certain area based on work or family obligations. Maybe you chose your current location because it was close to your job. If you have children, it might have been in the best school district. Now, you’re approaching retirement and the kids are all grown up and starting families of their own.
At age 61, most people say they feel free to choose where they want to live, according to a Merrill Lynch Retirement Study. Researchers found this age to be the “Freedom Threshold.”
The same study showed that 64 percent of retirees say they are likely to move at least once during retirement. Nearly 37 percent have already moved and 27 percent plan to do so.
Downsizing for retirement can be a great way to offload the financial and physical burden of maintaining the house. Here are five reasons to consider downsizing for retirement.
- Save on monthly expenses. Downsizing for retirement is a great way to save on monthly expenses, potentially lowering your mortgage payments and utility bills. It’s important to do your homework though, factoring in what you’re paying now compared to what you’d pay if you moved. Consider any additional expenses you’d incur from the move (such as an HOA or condo fee). If your house is already paid off, there are still savings to be had by downsizing for retirement. You might enjoy benefits such as a decreased energy bill.
- Reduced property taxes. Living close to a desirable school district or access to a highway can potentially drive up property taxes. During retirement, you have the freedom to live further away from the hustle and bustle of everyday life — and the opportunity to save money while you do it.
- Less maintenance. On average, people who maintain their own lawn spend two hours on lawn and garden care, according to the 2019 annual averages from the American Time Use Survey. Multiple that by 365 days in year and that’s 730 hours. Not how you want to spend retirement? Us either. Downsizing for retirement can help reduce the cost and time it takes to manage your lawn.
- More accessible as you age. Roughly half of the homes in the U.S. contain stairs, reported Reuters based on Census Bureau data. The costs of non-fatal stair injuries total nearly $92 billion annually. The populations with the highest injury rates? Adults older than age 85, children younger than 3 and young adults in their 20s. Climbing stairs to get to the master bedroom might have been fine in your 30s and 40s. In your golden years, however, it may become increasingly difficult. You may also decide that you want to forgo a tub for a walk-in shower with a waterproof seat or bench and slip-proof flooring. Downsizing for retirement allows you to buy a property that meets your needs (including safety) right now.
- Put cash back in your pocket. Nearly 15 percent of Americans have no retirement savings at all, reported CNBC, based on data from Northwestern Mutual’s Planning & Progress Study 2019. Only 17 percent of respondents said they have between $1 and $74,999 set aside for retirement, which falls short of the $1 million experts often recommend. Selling your house for a profit puts money back in your pocket. It can help you get a jumpstart on the retirement life you want to lead and maybe even become a nest egg for your children or grandchildren.
Maybe you’ve been putting off the idea of downsizing for retirement due to the work it entails to sell your property. Fortunately, there’s an easier, more efficient way. The Buy Guys pays cash for houses “as is” in Florida, Georgia and Texas. That means we buy properties in any condition. Once we receive a signed contract and title paperwork, you can get paid in as quick as five days.
For a free, no-obligation estimate, call (888) 204-7603 or fill out this form.