I’m a Financial Expert: Why My Retired Clients Regret Not Downsizing Sooner
Written by
Jennifer Taylor
Edited by
Susan Kim
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
Downsizing from a home you’ve lived in for decades is a big move. The house likely holds special memories, and the sheer volume of work required to move out can feel overwhelming — but the change can be much needed.
“Retirees that we meet are hesitant to downsize but almost always regret not doing it sooner,” said Noah Damsky, CFA, principal at Marina Wealth Advisors.
If you’re thinking of downsizing but aren’t fully convinced, it might be time to finally make your move. Here’s a look at four common reasons retirees wish they had downsized — both their living space and volume of possessions — sooner.
1. More Maintenance Costs
“Downsizing to a smaller home means fewer bedrooms and living spaces, and maybe even a smaller yard,” Damsky said. “Clients were tired of maintaining a half-acre yard with dense foliage and the costs that came with it.”
Not only were these maintenance costs expensive, but he said they also caused his clients a lot of stress. For example, one time a rabbit trapped itself in his clients’ drained pool.
“Although they saved it, they were sad and felt somewhat guilty,” he said. “They moved into a luxury apartment in the city where they could use a pool without having to maintain it themselves.”
2. Less Free Time
Living in a big house means more square footage to clean. Damsky had clients who raised their family in a large home but found themselves burdened by the immense task of keeping their large space tidy after becoming empty nesters.
“They didn’t need two — arguably three — of the bedrooms in their five-bedroom house now that their kids were well into their 30s and had their own lives,” he said. “Their new townhome had three bedrooms — enough to have an office and a guest room — and a much smaller yard, one that they could happily garden and enjoy.”
The smaller space gave them more time back in their day to do as they pleased.
“Instead of wasting time cleaning spaces they didn’t use, they had more opportunities to go to the gym and be social with friends,” he said.
3. Increased Emotional Burden
Failing to downsize often means retirees are constantly surrounded by the past. While memories are priceless, sometimes making a fresh start allows them to be happier.
“After raising three kids, a widow kept lots of memories over the years that she felt attached to but didn’t want anymore,” Damsky said. “She knew that while she was emotionally attached, she didn’t need any of these items — and her kids didn’t want them either.”
She knew she had two options — clean it now and keep what she wanted or hold on to items and let others throw them away when she passes, he said.
“She chose to clean things out, keep what was important to her, and get rid of the rest so her kids wouldn’t have to make those difficult decisions later on,” he said. “She felt relieved because she got rid of so much that she had accumulated and took the burden off her kids to be forced to do one day.”
Getting rid of things likely wasn’t easy. However, he said she wished she had done it sooner because holding on to these items forced her to stay put in her home longer than necessary.
“She got the monkey off her back and finally moved,” he said. “She wished she had done it sooner because it was the best thing for her emotionally and for her living situation.”
4. Higher Moving Costs
Moving isn’t cheap — especially when retirees are moving more than necessary because they haven’t gotten rid of possessions they don’t need.
“We have seen a large influx of clients who are moving from states like California and Washington to here in Idaho,” said Ron Strobel, CFP, RICP at Retire Sensibly. “It can be extremely difficult to downsize their personal belongings when planning an interstate move, especially with the high costs of rental trucks and moving companies these days.”
He said it’s not uncommon for these people to schedule a move close to their retirement date, which may mean they don’t have time to properly sort through their belongings.
“We often see transplants who decide to bring everything and sort through it all once they have moved,” he said. “That can add an immense amount of stress and added moving expenses to pack and unpack belongings that they didn’t really need or want at their new house.”
To avoid this issue, he said it’s best to start getting rid of unwanted items well in advance.
“We generally recommend that they start the decluttering process at least six months before a move,” he said. “It makes the process much simpler, cheaper and prevents cluttering up the new house.”
More From GOBankingRates
