Downsizing your home?
When you’ve got retirement in your sights, you might be weighing up the pros and cons of living in a smaller home. Find out if it’s the right move for you - emotionally and financially - with our 3 step guide to making decisions about downsizing.
Is downsizing the way forward?
In spite of the potential downsizing benefits of cutting living costs and releasing equity to boost retirement income, downsizing is still relatively uncommon among seniors. According to government research, about one in five older Australians have sold their property to buy a less expensive home since turning 501. A further 15% have the intention to downsize2 and this seems likely to be something they’ll do before, or soon after, retiring. The same research found that over 85% of Australians who downsize will make the move before they’re 703.
A smaller home for your future?
Reasons for downsizing in retirement could be financial or practical. Perhaps you want a home that takes less time to maintain. You could be looking for an income boost from selling or a change of pace and scenery with a sea change move to the coast or country.
Whatever your motives might be, here are 3 steps to evaluating your downsizing plan to make sure it matches your retirement goals:
Make downsizing part of your retirement game plan
With so many financial, emotional and practical factors to consider, getting professional advice on downsizing can help you make the right decision. Making the choice as part of your financial plan means you can look forward to a comfortable retirement, no matter where you decide to live.
Need help managing your money?
Getting expert advice can make a big difference to how prepared you are for retirement - both emotionally and financially. By discussing your lifestyle goals with a StatePlus financial planner you’ll have a much better understanding of the super and income you’ll need to make retirement a positive change in your life.
For more tips and tools, download our free Retirement guide or call us on 1800 620 305.
1 Housing decisions of older Australians, Productivity Commission Research Paper, December 2015, page 7, “Of the older home owners that have not moved yet, about 15 per cent had strong intentions to do so at some point in the future.”
2 Housing decisions of older Australians, Productivity Commission Research Paper, December 2015, page 7, “When people do downsize it tends to happen relatively early in retirement — over 85 per cent of older Australians who downsize do so before they turn 70.”
3 Housing decisions of older Australians, Productivity Commission Research Paper, December 2015, page 7, “According to the Commission’s survey, about one in five older Australians have sold their property and purchased a less expensive home since turning 50”