When Should I Downsize? Why Now Might Be the Right Time
As seniors step into retirement, they’re often at a crossroads about where they’d like to live as their needs change. Given the emotional attachment many people have to their homes, it’s understandable why anyone would be reluctant to consider a move without an imminent reason to do so. But the reality is a larger home can become a burden at a time when one might want to look towards simplifying life.
There are many compelling benefits to downsizing that may give you good reason to consider moving sooner than later. Let’s take a look at a few ways that deciding to move now might be the right move for you.
You bought low. Now sell high.
The real estate market has seen an unprecedented boom in home values over the past few years. Now might be a great time to sell. With homeowners reaping higher sales than ever, you could walk away with a nice sum of money. It’s also worth noting that the sale of your primary residence may be exempt from capital gains taxes up to a certain threshold. *
Hand off some of your monthly expenses.
Even if you’ve paid off your mortgage, there are still considerable costs to owning a home, such as insurance, lawn care, utilities, interior and exterior maintenance, and property taxes. You could save a substantial amount by moving into a smaller residence at a Life Plan Community where those costs are covered for you, with no financial surprises when unexpected repairs are needed.
Keep more money in your pocket, where it belongs.
The increase in monthly cash flow from having lower monthly expenses potentially means needing to take less from your retirement accounts and might even affect your decision about when you’d need to start collecting Social Security benefits. Delaying taking Social Security benefits could result in a higher monthly Social Security benefit, when you do decide to begin collecting. *
Isn’t it time to simplify your life? You’ve earned this.
Letting go of the clutter that often comes with living in a large home can give a boost to your well-being and clarity of thought. Most people feel an emotional relief that comes from getting rid of things that are no longer needed. Moving to a smaller space can reduce your stress and improve your quality of life, so you can spend time and energy on more enjoyable and fulfilling activities.
Become a social butterfly.
With less space to maintain, seniors can shift their focus from home maintenance matters to experiences and relationships. Senior living communities can offer a full calendar of social and life enriching events, with many opportunities to be social and enjoy life.
The decision to downsize in retirement can bring a multitude of benefits. From living maintenance-free, financial savings and becoming part of a community, seniors can experience a richer life and greater overall well-being. As people continue to explore senior living options, downsizing to a one-bedroom apartment stands out as an appealing, sensible choice for those seeking a fulfilling, comfortable lifestyle in their active retirement years.
John Knox Village of Florida has a multitude of housing options available for seniors, aged 62 and better, including bright, sunny one-bedroom apartments. With so many floor plans to choose from, we’d love to tell you more. Learn about what it means to live in a Life Plan Community, how it can give you financial security and simplify your life. Contact us today for a no-pressure conversation, or to schedule a tour.
*Consult with your tax and financial advisors for guidance on Social Security benefits, and for the most up-to-date tax exemptions.
