Downsizing for Seniors: Simplify, Save and Thrive

Summary: Downsizing for seniors may lead to financial benefits, simpler living, and a fresh start. This guide offers practical advice on how seniors can downsize, including helpful tips for decluttering, choosing a new home, and making the move as smooth as possible.

When your children have left home and the extra bedrooms in your house remain unused, you might start asking yourself, “Do I really need all this space?” Over time, keeping up with a large home can feel more like a burden than a delight.

Moving to a smaller home can be a chance to make life simpler, save money, and find a place that suits your current lifestyle better. It may even be the opportunity to pursue your life-long dream of retiring in another country or to a warmer climate. However, the thought of downsizing can be intimidating, especially if you’ve lived in your home for many years and have gathered a lot of belongings.

Reasons for downsizing

There’s no one-size-fits-all reason why seniors choose to downsize. Everyone’s situation is different but here are some of the most common reasons seniors choose to downsize.

1. Simplifying life as an empty nester

After years of raising a family, having a house full of empty rooms can feel strange. While a bigger home may have been necessary when your kids were around, now that they have ”flown the coop,” it may feel like you have more space than you need or can maintain. Moving to a smaller home or a condo that requires less maintenance can give you more time to focus on hobbies, traveling or other personal interests.

2. Financial benefits of downsizing

There are many financial benefits of downsizing. As far as your home is concerned, the bigger your house is, the larger your utility bills, property taxes and maintenance costs can be. By downsizing your home, you may reduce your living expenses as well as your property taxes and insurance costs. And, in a strong housing market, you may be able to earn a significant profit by selling your home and finding a smaller, more affordable home.

3. Health-related moves

As you age, you may find that your home is not as accommodating as it once was. It may become more of a challenge to climb the stairs in a two-story home, or your bathrooms may not have the kind of accessibility you now need. By downsizing, you can move to a home better suited to your needs. Independent and assisted living communities provide additional support to help you live more comfortably.

4. Lifestyle shifts and priorities

Your priorities tend to change as you age and become an empty nester. This is a perfect time for downsizing and shifting your lifestyle. It may mean a cross-country move to be closer to family, relocating to a retirement community that offers opportunities for you to stay active or finally getting the time to travel the world. The key is to find a place that makes your daily life more enjoyable and stress-free.

Steps for downsizing your life

Deciding to downsize is one thing, but actually doing it is where things can get challenging. Sorting through a lifetime of belongings, choosing a new home and managing the logistics of a move can feel overwhelming. Here are some steps to help make the downsizing process easier and more manageable.

1. Decluttering efficiently

One of the hardest parts of downsizing is dealing with all the stuff you’ve accumulated over the years. Decluttering can be challenging, especially if you’re the kind of person who loves to keep everything for sentimental reasons.

A great way to begin decluttering your home is to separate your stuff into three categories:

• Keep: items you love and just can’t part with
• Donate or sell: items in good condition that you no longer use or need,
• Discard: items that are broken, damaged, outdated or no longer usable.

With sentimental items, like your kids’ art projects or old trophies, you can take photos and create a digital memory book to preserve cherished memories instead of having them sit in a box, taking up space in your basement. If you really have a hard time purging your stuff, consider hiring a professional organizer to help.

2. Evaluating housing options

If you’ve made the decision to downsize and sell your home, the next question is: Where will you go? There are plenty of options, and the right choice depends on your lifestyle, budget and future needs.

For example, you may want to move to a smaller home or condo in your neighborhood that requires less upkeep. Or maybe you’d prefer a retirement community that provides more opportunities to stay active and involved with others. This is the time to weigh the pros and cons of buying another home and being committed to a mortgage versus renting.

If you’re not set on staying in your current community, consider moving to a different state that offers better financial benefits for seniors than where you live now. Some of the best places for seniors to retire have low to no State personal taxes, no taxes on Social Security benefits and easy access to quality healthcare.

Or you could decide to purchase a recreational vehicle and spend your retirement years living in different cities across the country. The choice is really up to you.

3. Financial considerations when selling your home

Selling your home can be a big financial decision, and you want to make sure you get the most value out of it. Research the housing trends in your area. If home prices are high and the market is active, you may be in a great position to sell. However, renting out your home may be a better option if the housing market is down. You can generate passive income by renting your home while enjoying a smaller, more affordable living space.

Making downsizing work for you

Downsizing for seniors is a big step, but it doesn’t have to be stressful. You can make it a smoother transition by planning ahead, decluttering gradually and making wise decisions about your next home. Instead of seeing downsizing as losing space, think of it as gaining freedom from extra upkeep, financial strain, and clutter.

If you are considering downsizing, it may also be the perfect opportunity to reassess your financial plan and insurance safety net. Mutual of Omaha offers a range of insurance and financial solutions tailored to seniors, helping you plan for the future with confidence.

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Frequently Asked Questions

Q1. At what age should seniors downsize?

Many people start downsizing as early as 55 years old.¹ Even though this age might be considered “young” for being a senior, it’s often when people find their children have left home for college or to start their own lives.

Q2. What financial considerations should I keep in mind when downsizing?

When downsizing and selling your home, you should keep several financial factors in mind, such as moving costs and whether buying or renting is a better option. If you decide to purchase another home, you should consider property taxes, homeowners association (HOA) fees and insurance on your new home. Consult a financial professional to help you decide if your downsizing plan aligns with your long-term financial goals.

Q3. Are there professional services that help with downsizing for seniors?

Yes – if downsizing is too monumental of a task to do yourself, you can hire people to help you. Some professional organizers, moving specialists and even real estate agents offer downsizing help for seniors. They can help you declutter, pack, sell your home and transition into your new living space.

Sources

1. Sellers: Results from the Zillow Consumer Housing Trends Report 2024, https://www.zillow.com/research/sellers-housing-trends-report-2024-34385/

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