If you own a home, it is likely your most
valuable asset – both sentimentally and
financially. Though it may be dear to you,
you should consider whether your current
home and community is the right place for
you in retirement.
According to a 2010 survey of baby boomers, 50 percent of all baby
boomers plan to move when they retire. There are many good reasons to consider
downsizing or relocating:
- Retiring with debt is suboptimal; perhaps you can downsize and eliminate a mortgage altogether.
If you do not have enough equity to buy a smaller house outright,
reducing your mortgage size will likely improve your financial security in retirement.
In retirement your housing needs will change and you may want to find a
community and home to better fit your retirement lifestyle.
In addition to a lower mortgage relocating can provide several other financial
and lifestyle benefits:
- Financial: Moving to an area with a lower cost of living, lower energy
costs (heating and cooling) in a newer or smaller house and better tax
environment are some of the reasons retirees relocate.
- Lifestyle: Moving to an area which offers a lifestyle, climate or
community that is a good fit for your retirement.