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Retirement is an exciting time of life that many people look forward to with anticipation. But for those who are nearing or already in retirement, it can also be a time of financial strain. Many retirees are downsizing their homes to help improve their finances to alleviate this burden. According to MoneyTransfers.com, 1 in 4 Brits plans to downsize their home upon retirement.
Speaking on the data, the CEO of MoneyTransfers, Jonathan Merry, said:
This is a popular strategy that can yield financial and lifestyle benefits. Downsizing your home involves moving to a smaller property with lower costs. Many retirees opt to move from their large family homes into more manageable apartments, flats or small houses. The lower cost of these properties makes it easier for retirees to manage their finances while still enjoying a comfortable lifestyle.
MoneyTransfers CEO, Jonathan Merry
There Are Various Reasons Why Brit Retirees Are Downsizing
Downsizing your home can be a great way to reduce your monthly expenses. Many retirees will choose to downsize as it eliminates the extra space they no longer need and reduces their outgoings on utilities, maintenance, and property tax. Another benefit is that it often frees up money which can then be used towards retirement pursuits such as travel or hobbies.
Moving house can also be an excellent opportunity to make new friends and explore different neighbourhoods. Moving from a large family home to a more manageable apartment or flat can enable retirees to get out and about in their new neighbourhood, engaging with local people and businesses, which can help combat loneliness.
Tips for Downsizing in Retirement
As you enter retirement, you may find your home too large for your needs. Whether you want to downsize for financial reasons or simply because you don’t need the extra space, there are a few things to keep in mind.
Go through your things and decide what you need and can live without. This can be difficult, but being honest with yourself is crucial. When you downsize, you’ll likely have less space, so you’ll need to be more intentional about how you use your time and belongings.
Once you decide what you’re keeping and getting rid of, it’s time to get organized. This will make the actual process of downsizing much more effortless. The most challenging part of downsizing in retirement is finding a new home that meets your budget and needs.
Downsizing your home when you enter retirement doesn’t mean that you have to sacrifice your quality of life. If planned correctly, it can be a great way to reduce expenses and pursue your dreams in retirement.
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