Women Close To Retirement Should Consider These Decisions Before Downsizing

Have you noticed your mind drifting? Have you been daydreaming of new ways to envelop yourself in a state of complete relaxation? Have you been envisioning lazy days listening to the peaceful, serene sounds of ocean waves as the sun rises on the horizon?

As a 53-year-old Gen Xer, these questions conjure a desire to relocate and downsize to beach living. A home on the water has always been a dream of mine. As I age and become more appreciative of genuine, good-quality rest, I realize the importance of surrounding myself with the tranquility I feel when I’m near the ocean. While the beach life may be the best way to spend my retirement years, for you it may be buying a flat overseas, moving to a family home in the country, or purchasing a property in your favorite vacation town. Now is a perfect time to start brainstorming about what your future life may look like and how you want to enjoy that time.

This year, the oldest members of Generation X are turning 59, still years away from full retirement age (which is 67, in case you’re counting down the days). According to the current economic data, there has been little change in one of its key statistics, the quits rate, which tracks the number of voluntary separations initiated by employees in the labor force. This rate can help measure when people are retiring and how often. The report reveals that Gen X has a lower quits rate than Millennials and Gen Zers, but recent shifts in the labor market like remote work and the impact of the Covid pandemic have influenced all generations to reevaluate their career priorities, job satisfaction, and economic conditions.

Realizing that you are in the pre-retirement phase of life, the major question you may seek to answer is: what do you want the next chapter of your life to look like? For some women, downsizing is the right move. However, it’s a huge decision that requires a lot of planning and includes a lot of factors such as your lifestyle, family, and financials as part of this major, life-altering change.

Realtor Melanie Gamble, owner of 212 Degrees Realty, LLC in Upper Marlboro, Md., shares these major lifestyle factors to consider before making the decision to downsize:

• Community and social life: Think about the social implications of moving. Downsizing might mean leaving a familiar community, so it’s important to find a new place where it’s easy to build a social network.
• Location: Consider how close your new home will be to family, friends, healthcare facilities, and amenities. A more convenient location might outweigh the need for a larger space.
• Accessibility: Factor in your future needs. Look at homes with features that have fewer stairs, wider doorways, and easy-to-maintain environments.
• Space requirements: Determine how much room you’ll need for hobbies, entertaining, family visits, and a home office.

An alternative to downsizing is combining resources with family members to reduce the footprint each person occupies. The number of Americans living in multigenerational family household s has more than quadrupled since the 1970s. In 2021, 59.7 million people in the U.S. were living with multiple generations under one roof and the numbers have continued to trend upward. Pooling resources allows family members to build and maintain a financial safety net to prepare for an income reduction when someone retires. It helps with generational caregiving needs, provides in-house mental and emotional support, and creates a deeper connection and relationship with your household members. For some Gen X women, sharing living space with multigenerational relatives is part of their family’s legacy.

A final consideration before downsizing is getting rid of household items you may have spent decades accumulating. Decluttering your belongings can be a highly emotional and overwhelming process, but it works best when you tackle it in small, manageable increments. “Begin with one room at a time and sort your items into these categories: donate, recycle, discard, upcycle,” advises professional organizer Vernestine Laughinghouse of Absoulute Organizing Solutions in Washington, DC.

Whatever decision you make about your future living arrangements, the math has to be mathing . You can’t make such a big, life-altering change without looking at your financial resources to determine if the move you’re considering is even an option. Interest rates are higher than they were a few years ago and you may need to sit down with your financial advisor to do some scenario planning. How much equity exists in your current property? Will this equity cover the cost of a new home and eliminate extraneous lifestyle expenses? How will a move like this impact your retirement income needs?

You may have a vision in your mind already, but the financial reality of downsizing may halt you in your enthusiastic tracks. Filtering through your options with a certified financial planning professional can help you solidify your decision and make you comfortable, knowing you have an outline of your wants, must-haves, and needs and an understanding of the impact they will all have on you and your family as you get closer to—and finally cross into— your retirement zone .

By Zaneilia Harris, Author & CFP Professional, Contributor