Updated 10/02/2020
Downsizing for retirement is a common practise performed by many pensioners. After retirement, every older person looks forward to living their golden years comfortably with minimal financial stress and assured safety. It is a fresh start which calls for a lot of adjustments, especially with regards to finance, health and your safety. This year, the state pension is set to rise in April, so many pensioners will be afforded a few extra luxuries they might not have previously been able to afford. In spite of this, it’s still important to make sure you’re on top of your savings, and not being excessive where possible.
This would mean having better management of savings, pensions, and benefits, cutting down on bills and having a reliable safety response back-up for emergencies – especially when you’re living alone.
Retirement is a time to focus on one’s priorities, only making room for necessary matters. Retirees, in most cases, have family members or kids who are away from home, either working, in school or raising families of their own. While downsizing for your retirement to a smaller home is often the first step, security has to be heightened. Alarm systems become indispensable, in case of burglaries or accidents within the home.
Downsizing is often the preferred way to kickstart retirement. 64% of retirees downsize from their homes to smaller, mortgage-free houses. The quicker you sell your house and unnecessary possessions, the better – before their value depreciates.
When it comes to selling any property no longer needed, learning hacks for selling your house quickly might come in handy. Such hacks get you more value for your property and in good time too!
The Emotional RollercoasterÂ
Downsizing means dropping your lifestyle and choosing another. You might just have to physically move from your neighbourhood and your former life. It triggers a variety of emotions from excitement to stress. It is a disruptive process. Getting rid of possessions accumulated over a lifetime is never easy.
At this point you realise how attached you are to some of the stuff and the many memories they bring with them. The thought of letting them go could mean a few tears.
The better part then comes later. You begin feeling lighter and more alive than before. You also end up with very little to worry about. It is an act of sacrificing something dear today for something you need tomorrow.. for the greater good.
So the sooner you get over with it, the better for you socially, physically and even more so financially.
The Pay Off in Downsizing
There is a lot more to downsizing than the physical change itself. It is an opportunity to look back at your life and where you are heading. It is at this point that you get that golden chance to determine the next chapter of your life.
To many, it is a liberal opportunity to create a new life all over. The most important bit is the opportunity to boost your retirement finances. With tips on how to rip big benefits when downsizing, you will comfortably enjoy your golden years in a truly golden way.
One good idea would be create your very own bucket list – to help you to decide what to spend your money on now that you’re retired.
Investing Your Money
In the event that you have a lump sum of cash after downsizing, there are many possible outcomes of how you use that money. Investing your money could sound scary to someone who’s never thought about it. However there are loads of benefits of even investing a small amount. Of course when investing there is always an element of risk. So really its entirely down to your own attitude towards investing.
There are also many benefits for your family with investing. In the tragic event of your death, your investments will get passed on to whomever you put in your will and testimony. So as long as you’re safe with your investments, your family will be too.
When retiring there can be many concerns but money usually isn’t the biggest, concern straight away at least. We would never encourage you to throw your interest away but as Albert Einstein said “the 8th Wonder of the World is Compound Interest”.
For example, if you were to put £10,000 into a bank with an interest of 1% you would have £11,051 in 10 years time. Doesn’t sound like a lot does it. In contrast if you had put that £10,000, 10 years ago, into a medium risk , stocks and shares ISA it would be worth £16,470 today (credit: 4 Financial Planning)
Just to reiterate, Investing your money can be a risk. And depending on how much you’re investing, it could potentially be lifestyle-threatening. However if you do your research, don’t go into it straight away and practice at it, it could instead be lifestyle-changing for you and your family.
Rip Big Financially
Knowing the actual market value for a lot of the stuff you own can be hard. You might want to acquire the services of the various residential appraisal companies near you. Once you get the amount your home and property will fetch you, weigh it against the cost of settling in a smaller house. It will often leave you a substantial amount that you could invest. To get more, you could upgrade your residence through repairs and repainting.
Downsizing for your retirement is an overall new adventure. It has been the best option for many retirees. It is best if done in no hurry and after having weighed all options. While it might seem hard and a downgrade, downsizing upon retirement has more positives than negatives.
Personal Alarm Information
For more information about our life-saving personal alarm service, please get in touch with our friendly team on 0800 999 0400. Alternatively, complete our contact us form and we will get back to you as soon as possible.
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