{"id":249090,"date":"2025-10-29T17:17:43","date_gmt":"2025-10-29T17:17:43","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/249090\/"},"modified":"2025-10-29T17:17:43","modified_gmt":"2025-10-29T17:17:43","slug":"4-key-signs-you-cant-afford-to-downsize-in-retirement","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/249090\/","title":{"rendered":"4 Key Signs You Can\u2019t Afford To Downsize in Retirement"},"content":{"rendered":"

For many older Americans, the idea of trading in a larger family home<\/a> for a smaller, more manageable property sounds like a smart financial move. But rising housing costs, emotional attachments and unexpected expenses can make downsizing more difficult and expensive than expected.<\/p>\n

Find Out: Here\u2019s How Much You Need To Retire With a $100K Lifestyle<\/a><\/p>\n

For You: 5 Clever Ways Retirees Are Earning Up To $1K Per Month From Home<\/a><\/p>\n

According to Finder\u2019s Consumer Confidence Index<\/a>, 79% of American adults feel stressed about their finances, noted Laura Adams<\/a>, nationally recognized finance expert and award-winning author. \u201cHousing is likely your largest expense if you\u2019re a retired boomer on a fixed income,\u201d she added.<\/p>\n

Here are four key signs that downsizing might not be the right move for you<\/a> \u2014 and what you can do instead.<\/p>\n

It\u2019s Not a Clear Financial Win<\/p>\n

Higher mortgage rates<\/a> and housing costs can make \u201csmaller\u201d homes more expensive than expected.<\/p>\n

\u201cWith the rising cost of housing and relatively high mortgage interest rates, boomers may find that purchasing a smaller home is above their price range,\u201d Adams explained. \u201cSmaller \u2018starter\u2019 homes may be difficult to find in some areas due to high buyer demand.\u201d<\/p>\n

Instead, Adams suggests that staying in a larger home you\u2019ve partially or fully paid off may actually be more affordable for retirees on a fixed income.<\/p>\n

Trending Now: Dave Ramsey Warns: This Common Habit Can Ruin Your Retirement<\/a><\/p>\n

You\u2019re Emotionally Attached to Your Home<\/p>\n

Many boomers raised families and spent decades in their homes. Letting go can be emotionally painful.<\/p>\n

\u201cThis generation has lived through and experienced the most financial crises to date. These homes they have lived in carry sentimental weight, heavy emotional attachment and memories of raising a family,\u201d explained Peter Reagan, financial market strategist at Birch Gold Group<\/a>.<\/p>\n

Reagan advises those thinking about security in retirement to look at how much balance they have between their assets, and his highest priority is to make retirees feel emotionally secure in their next steps.\u00a0<\/p>\n

\u201cHome equity is important, but being financially stable in retirement is about more than that. In my experience, what has helped is shifting the perspective of what they would be moving toward and not what they are leaving behind,\u201d he suggested.<\/p>\n

You\u2019re Sitting on a Low-Interest Mortgage<\/p>\n

Retirees who refinanced when rates were low may find that selling and buying again results in a higher monthly payment.<\/p>\n

\u201cThe real estate market can be unpredictable, and selling a home might not result in the windfall they expect,\u201d wrote Matt Ward, real estate professional and team lead for The Matt Ward Group<\/a> at Benchmark Realty. \u201cPlus, many Boomers are sitting on large, low-interest mortgages, making it difficult to afford a smaller, more manageable home.\u201d<\/p>\n

Ward recommends thinking about what you want from retirement. \u201cIf it\u2019s financial flexibility, we should explore the potential of tapping into the home\u2019s equity,\u201d Ward wrote. Downsizing could also mean relocating to a more affordable area or considering a multi-generational property, he added.<\/p>\n

\u201cThe key is approaching it with a strategy that respects their lifestyle and long-term goals,\u201d Ward explained.<\/p>\n

The Costs of Selling Will Eat Into Your Profits<\/p>\n

At first glance, selling your home<\/a> might seem like a straightforward way to unlock equity and simplify your life, but the hidden costs can quickly eat into your profits.<\/p>\n

\u201cThere are expenses involved in transactions like realtor commissions, taxes and even the possibility of expensive repairs that can cut into any possible gains,\u201d wrote Brandon Thor, CEO of Thor Met<\/a>a<\/a>ls Group<\/a>. \u201cThis added layer of complication makes the choice more intimidating for those who did not plan.\u201d<\/p>\n

Thor suggests having an idea of where you stand in terms of your finances. \u201cA calculation that includes not only the price of selling their home but also the expense of relocation and purchasing a new home,\u201d Thor explained.\u00a0<\/p>\n

He also recommends meeting with a retirement-trained financial planner and considering financial tools such as a reverse mortgage to release equity without selling your home.<\/p>\n

More From GOBankingRates<\/p>\n

This article originally appeared on
\n GOBankingRates.com<\/a>:
\n 4 Key Signs You Can\u2019t Afford To Downsize in Retirement<\/a><\/p>\n

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.<\/p>\n","protected":false},"excerpt":{"rendered":"For many older Americans, the idea of trading in a larger family home for a smaller, more manageable…\n","protected":false},"author":2,"featured_media":249091,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[64,63,99,186,184,185],"class_list":{"0":"post-249090","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-au","9":"tag-australia","10":"tag-business","11":"tag-finance","12":"tag-personal-finance","13":"tag-personalfinance"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/249090","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=249090"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/249090\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/249091"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=249090"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=249090"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=249090"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}