How to downsize for retirement
posted on November 09, 2023
We’re all getting older and that means that retirement is on the horizon for all of us. If it’s just around the corner for you, here are some tips to help you downsize your life for the next stage.
Sell your home
Whether you rent or own, you’ll need to part ways with your current home to downsize. If you own your home, you’ll need to find a reputable real estate agent in your area to handle the listing and sale of your property. You can do that by searching skillfully online. Be sure to read plenty of reviews as selling your home is a big task and you’ll want to feel confident in the agent you choose. A good agent will help you choose an appropriate listing price, advertise the property effectively and guide you towards any beneficial maintenance, staging, repairs and more that may help you get the best price possible. You’ll also want to work out a strategy with the selling agent for finding your next home at the same time as you sell your current home so you don’t find yourself in debt.
Say goodbye to what you no longer need
A big part of downsizing is letting go of what you no longer need. This can be a real challenge and even quite an emotional experience for many people because possessions tend to go hand-in-hand with a lifetime of memories. If you’re not sure what to give up, you can follow Mari Kondo’s advice and start by getting rid of anything that no longer sparks joy for you.
When it comes to saying goodbye to unnecessary possessions, there are many ways to move on. You can give them to family and friends, donate them to a local charity shop, sell them on Facebook marketplace, auction them on MaxSold etc. It’s best to avoid dropping everything at the dump if the items have a chance to enjoy a second life with a new family.
Enlist help from loved ones
If you are retiring, there’s a chance you may find the process challenging to manage on your own. It never hurts to ask for help from friends and family when it comes to saying goodbye to your home or possessions. If you have adult children, their help could be invaluable as you make major decisions along the way.
Find the right retirement destination
You can retire virtually anywhere in the world. If you don’t have a particular destination in mind, but know you want to retire in Canada, here are the top retirement destinations in Canada. You’ll want to find somewhere affordable but not dull, and not too remote so you can travel if you desire to and access daily necessities, medical care and more with ease from your new home base.
Create a retirement budget
Retirement opens up a world of opportunity for many people. Because you no longer have to work, you can now take the time you need to travel, become a tourist in your own city, focus on your passions and more. Creating a retirement budget is essential so you can do everything you want to do without worrying about the bottom line.
Find the right new home for you
You'll want to find a great buying agent if you plan to downsize to a new home or condo, or do your research to find an excellent retirement community or assisted living home. There are pros and cons to whatever retirement destination you choose, and you may need to move if your needs change during your retirement. If you need medical or physical assistance, a retirement community or assisted living facility may be your best and most cost-effective option.
Manage your money
When you retire, you have the opportunity to manage your money strategically. It's important to find someone or something to help with this, be it an investment specialist at your bank or an investment management tool like WealthSimple. You may find yourself with access to more money thanks to the sale of a home or a pension plan, so it's wise to invest the money you don't need access to immediately and grow it steadily over time.
We wish you all the best as you downsize for retirement.