Downsizing in retirement is not only financially smart for some retirees but can help you declutter and organize your home.
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Now that the lockdown restrictions are slowly beginning to lift, you may find yourself looking for a new house and changing your living situation. Whether it’s moving out to a more affordable state with no income taxes or moving to a smaller home with less maintenance, downsizing in retirement can help you lower your expenses.
If retirement is on your mind and you’re planning to downsize, this in-depth guide will help you stay organized while you declutter before moving to your forever home.
If you’re wondering where to start—we’re here to help! We’ll run through a few hints and tips on how to downsize effectively and get ready for retirement.
Whether you’re downsizing, moving, or simply want to get rid of extra items—sorting and organizing your stuff will help you towards your path to retirement. Therefore, before taking any further steps, make sure to go through your stuff and literally ‘downsize’ the number of things you own.
You probably have a lot of stuff that you don’t need—the average American household has 300,000 things. It sounds overwhelming but it doesn’t have to be. Turn it into a fun game by dividing it into three piles—discard, donate or sell.
Here’s how you can declutter your closets, drawers and downsize everything you own.
Once you’ve decluttered, donated and downsized—go one step further, use innovative storage solutions to organize your belongings, free up more space and, on the whole, keep your place tidier.
Your choice of storage will depend on your needs. You could use a vacuum-packed storage bag, get an ottoman or invest in a full-service storage solution like MakeSpace. Keeping any unwanted belongings out of sight and out of mind will make your home look and feel a lot more comfortable.
Downsizing or decluttering your home is all about making it more manageable to live in—keeping you comfortable, stress-free and able to enjoy your retirement in the best way possible.
Technology can be your best friend. From investing in a robot vacuum cleaner to downloading Silvur—a free retirement planning app that helps calculate your retirement plan and income. These resources are solely designed to make your life and retirement planning easier.
Silvur can help guide you through life decisions—like downsizing—with Silvur’s retirement checklist and calculators. Whether figuring out if you should downsize or refinance, Silvur projects your Retirement Score to show your monthly expenses against your income. Your Retirement Score shows you how long your money will last. The score factors in your estimated Social Security benefits and Medicare costs. For example, if you’re deciding where you want to live in retirement, Silvur will show you the impact on your savings such as Medicare costs and taxes based on your zipcode. Silvur helps you calculate your finances to make better decisions.
By investing in technology for your retirement, you can make downsizing and buying a new house a very enjoyable process. With MakeSpace, you’d never visit a storage unit again because you can easily get items you’ve stored away returned to your new house. MakeSpace’s photo inventory allows you to view all your items in storage and schedule returns when you want it.
Do you feel that you can maintain your current home—both financially and physically—in your later years? If the answer is no, you should probably consider downsizing to a manageable property. If you’re unsure, try to declutter the rooms in your house and see if there’s more space than you actually need.
There’s also a lot of financial calculations to consider as well. Luckily, Silvur is here to help you calculate your retirement. If you plan to downsize once you retire, there can be some hurdles for receiving a mortgage with no income. However, there are things you can do now to help with the mortgage process or maybe you can start searching before you retire.
In addition, there are other necessary decisions you need to make to choose your next home for retirement:
It’s a new phase and a whole new lifestyle, even if it looks like there are lots to do—enjoy the process and it will automatically be a great new project to execute. Before you know it, you’ll be in your new downsized life and loving every bit of it.