Though many individuals may dream of remaining in their homes during a retirement, doing so may not be the most financially sound option. Throughout the recession, the benefits of downsizing have been touted by a number of sources. According to New Retirement, moving to a smaller home to retire may lead to invaluable savings.
For empty nesters, large homes are sometimes no longer necessary and may amount to significant additional expenses, the source says. Funds spent on household maintenance, utilities, and the cost of living in a high-cost area can potentially be saved by moving to a smaller home in a less expensive community.
By moving away from the larger home, the money saved can go toward more important purposes. Among those are potential annuities, traveling and other entertainment expenses, long-term care insurance, or life insurance that can be passed on to heirs.
Downsizing may possibly be one of the best solutions to make retirement more of a feasible reality for some. According to a recent survey, a number of senior citizens no longer believe retirement will be an option for them due to financial concerns.