Downsizing for Retirement Can Fund Your Lifestyle
Millions of Americans that are close to retirement age have reconsidered their retirement plans due to COVID. The pandemic has resulted in fatigue, stock prices are on the rise, and home values have increased substantially. This all leads to people looking to cash in on their investments and retire earlier than they had expected to.
When you’re working, your life is often dictated by work schedules and available vacation time, and much of that is dependent on where you would want to take your kids (if you have them). Now that you can move forward with your retirement, you can live your life on your schedule!
One way Americans make the retirement life of their dreams a reality is by cashing in on their investments, like any equity they’ve built up in their homes. Downsizing for retirement frees up any money tied up in your house and allows you less stress with a smaller home to maintain.
This second part of the two-part blog series addresses some of the fiscal and mental health benefits associated with downsizing for retirement. Don’t miss the first part of the blog here!
Increased Sales Values in The Current Market
Stories of crazy home buying experiences have hit the news over the past several months, with buyers being asked to bid on homes or get put on long waitlists for new construction opportunities. Many people are looking to move into a home that better meets their needs after working remotely for so long while others want to take advantage of the low interest rates in the market. This has led to a flood of demand with only a trickle of supply, in turn driving up sales prices.
With these escalating prices, your home equity is probably in a good place right now. Cashing in on this equity by downsizing for retirement allows you to use those funds to travel or try new experiences. It’s tough to say what the real estate market will do in a few months, or even next year. Downsizing for retirement while sellers have the upper hand can give you the maximum benefit for your home.
Improve Your Monthly Cash Flow
Large homes come with large price tags, and why keep paying for all of that space you’re not going to use? Property taxes, utilities, and repairs all come out of your monthly budget. Downsizing for retirement gives you the opportunity to spend less and free up more cash in your monthly budget to enjoy more of what you love, like shopping or golf.
Living in a hotel-inspired senior community means never worrying about the cost of unexpected repairs! This makes sticking to your budget easier and decreases stress since you’re not waiting on the repair bill to show up.
Decreasing Maintenance Stress
It’s no secret that owning and maintaining a home can be a lot of work. The larger your home and property, the more work it takes for general upkeep. Cleaning takes longer and yard work is a bigger time investment. Just think of all of the fun things you could be doing instead of dusting 2000 square feet worth of baseboards.
Downsizing for retirement to an independent living community, like LivGenerations Pinnacle Peak, allows you to choose the help you need. Want someone to handle the cooking? Enjoy gourmet, yet healthy, foods. Tired of all of the cleaning? Subscribe to housekeeping services. Need some help with day-to-day basics? Enroll in assisted living. It’s all found in one place, without the guesswork of hiring someone on your own.
Too Much Can Be Bad for Your Mental Health
Clutter and a general sense of having too much can cause a shift in your mood, according to some studies. Downsizing for retirement gives you a sense of freedom you may not have had before. Maybe you find that your two-story home isn’t practical as you age. Or, it could be that your too-long to-do list is causing unnecessary stress.
Making the shift to a smaller home while decluttering and minimizing your stuff can lift a weight off your shoulders you may not have realized was there. If you’re not sure where to get started, this handy guide on moving will help.
Visit The Places You’ve Always Wanted To
Over the years, you’ve probably shortened vacations so you didn’t have to leave your home unattended. Or, it’s possible you ended up skipping or postponing vacations due to unexpected home repairs.
By downsizing for retirement, you’re freeing up cash and your mental energy. You can visit the places you’ve been dreaming of without the added stress of homeownership. Use your newly found free time to explore the world.
Build New Relationships
Having regular, meaningful interactions with friends and family has been shown to positively affect your health and potentially increase the longevity of your life. By choosing to downsize for retirement, you’re opening the door to living where you want. Do you want to move closer to family or somewhere new?
Sometimes, owning a home can be isolated as we age because those who lived around us are moving away. But choosing an active retirement community gives you plenty of opportunities to meet new friends that are a short walk away. With a variety of activities taking place every week, you’ll never run out of opportunities to meet new people.
Take Charge of Your Retirement Life
A lot of adult years are spent working to pay bills and save for a future when you don’t have to work anymore. Once you’ve made it to the other side, you have the chance to start taking charge of how you want your life to go.
The benefit of downsizing for retirement is that it gives you the opportunity to decide what is no longer useful in your stage of life. Declutter and free up your time to do more things that are fun. For example, attend classes just because or find a new hobby to enjoy.
LivGenerations Pinnacle Peak is filled with vacation-inspired amenities and a bustling social calendar. There are plenty of options for every resident to find something that interests them and then find friends with similar interests. It’s like being on vacation without ever leaving home.
Are You Ready to Make the Leap?
Staying healthy in retirement is a balance between social, physical, and mental health boosting activities. Regular social engagement, exercise, and learning new things all help to feed your body. But it’s important to take the time to relax and let yourself recharge.
Downsizing for retirement allows you to find the balance that works for your body and mind, to help you be as happy as can be. As more people move to active retirement communities, some companies have decided to take the experience to the next level. LivGenerations discusses the new style of retirement living with AZ BIG Media here.
If you’re ready to take the next step in downsizing for retirement, stop by and take a tour today.