When it comes to retirement, there are a lot of decisions you need to make. Not only do you need to figure out what it is you want to do with your time, but you also need to decide where you want to do it. A lot of retirees choose to upgrade to a dream home they couldnít afford in their earlier years. However, before you consider doing this, it is worth looking into the benefits of downsizing.

Why pay more than you need to?

Even if you plan on staying in the family home, you are likely paying a lot more than you need to. Think about the amount of space that you need. If you currently have a lot more than is necessary, you will be basically paying more on tax and utility bills than what you actually use. Financially it just doesnít make sense.

Of course, there is the argument that as you have been in the family home for years, your mortgage may be almost completely paid off. Surely staying put would save you a lot more money without a mortgage? However, you will still be paying more on other aspects of the home than you would in a smaller property. Downsizing can potentially help to save you hundreds of pounds a month. So if you do have more space than you need, or if you are thinking of moving to a larger home, you should seriously consider whether the financial implications are worth it.

Freeing up more money to enjoy life

The financial savings are definitely the biggest benefit of downsizing, though it also links to other benefits too. For example, with the money you save, you could use it to go on that holiday of a lifetime youíve always dreamt of. Or simply use it as part of your retirement fund. It is no secret that retirement is a lot more expensive than it used to be. Downsizing can help to make it a little more affordable if you didnít manage to save a large amount during your working life.

Helping you to become more social

One of the biggest problems people face when they retire is loneliness. It can be difficult to make new friends as you get older. The good news is there are accommodation options that are not only cheaper, but which are especially built with retirees in mind. Downsizing and moving into a retired community can save you a fortune. Maintenance and repair costs are typically covered in the rent and youíre bound to meet plenty of new people. You also keep your independence, yet help is always available if you need it. 

Providing you with a fresh start

One of the best ways to look upon retirement is to see it as a new phase of your life, rather than the end. When you downsize your home, it enables you to get rid of any unwanted clutter. By eliminating anything you donít need and moving into a smaller place, it really gives you a chance to start over. Downsizing also enables you to start living a simpler life. As the home will be smaller, it will take less time to clean; leaving you with plenty of time to do other, more exciting things.  

Overall there are many benefits that come with downsizing during retirement. At a time when you should be enjoying the years that you have left, it makes sense to ensure you have plenty of money to do that. Why pay more when you really donít have to? Whether you choose to rent or buy a smaller property, it could be one of the best things youíve ever done. 

Olly Sampson co-owns Bee Moved a removals firm based in Brighton which has helped many retired people begin a new life in their dream home.