Preparing for retirement is an exciting journey that often brings big changes. If one of the changes you’re considering is downsizing for retirement, you’re not alone—around 51% of Americans plan to downsize for their golden years. Learn how to downsize your home for retirement with this helpful guide!

Weigh the Pros & Cons of Downsizing for Retirement

Your first step is to decide whether downsizing for retirement aligns with your priorities. If you don’t have the time or resources to renovate your home to safely age in place, moving to a smaller home might be the right choice. Some other great benefits of downsizing in retirement include saving money, simplifying your lifestyle, and decluttering your living space. However, the process can take a physical, financial, and emotional toll, so it’s important to carefully weigh your priorities before making the decision to downsize in retirement.

Decide Where You Want to Retire

When downsizing for retirement, you might find yourself tempted to move to a new city for a number of reasons—including a lower cost of living, better amenities, or a desire for closer proximity to loved ones. Whether you’re interested in relocating across town or across the country, take time to ensure the destination is affordable and meets your needs. You might even consider researching the best cities for retirees or retired military to see if any would be a good fit for you. Before deciding, it’s smart to use a reliable cost of living calculator to compare how expenses vary from city to city.

Choose Renting vs. Owning a Home in Retirement

As you consider how to downsize for retirement, ask yourself whether renting or owning a home best fits your retirement goals. Homeownership can provide access to a home equity line of credit if you need extra funds, and a reverse mortgage can provide a valuable source of income. But while many prefer owning a home because of the independence it offers, there are also good reasons for renting in retirement. Since most rental properties come with a maintenance staff, you won’t have to worry about paying an average of 1% to 4% of your home’s value in upkeep costs. Having built-in maintenance is also helpful since home improvement can get more difficult as you age. In addition, renting means you won’t have to pay property taxes or higher utility bills, nor will you have to deal with the ups and downs of the real estate market in terms of resale value.

Find Retirement Housing That Suits Your Needs

In order to find the best retirement housing option, reflect on your goals and needs. Do you want to spend more time with your kids and grandkids—or host family in your home? Would you like to travel more often? Are you struggling to keep up with home maintenance? Do you have accessibility or health concerns? Keeping these factors in mind as you explore housing options will help you determine whether downsizing for retirement means a smaller house, a condo or townhome, an independent or assisted living facility, or a retirement community. For retirees looking for adventure or flexibility, there are alternative options—like living in an RV or houseboat—that allow you to travel more and even work part-time from the road. Co-housing is another form of alternative housing that can benefit seniors in retirement who are seeking community.

Calculate Moving Costs Before Downsizing

Downsizing to a condo, townhouse, or apartment allows you to better utilize your living space and cut down on upkeep. However, you don’t want to downsize after retirement to save money only to discover the new home is more expensive than the one you left—or that taxes on home equity hit you harder than expected. Before downsizing for retirement, take a look at your current housing expenses—like mortgage payments, property taxes, home insurance, utility bills, and maintenance costs—and compare those numbers with what a smaller home would cost, keeping your home’s value and estimated home equity in mind. You’ll also need to factor in the costs of selling and moving, as well as closing costs, realtor fees, and any updates or improvements that need to be made to your current home. Using a helpful moving cost calculator can assist you in figuring out what you’ll need to have saved up to make a move feasible.

Make a Decluttering Plan

Once you’ve figured out the logistics, it’s time to start preparing to move. Decluttering is a key part of retiree downsizing that helps you stay organized and make the most of a smaller space. Some of the best tips for decluttering your home include creating a timeline and choosing a decluttering method that makes sense for you, from the KonMari Method to the 90/90 Rule. When you’re ready to start, focus on one room at a time, and begin with items that don’t have sentimental value to build momentum. Enlist family members and friends to help you go through larger areas like the basement, garage, or attic more quickly!

Separate Items Into Categories

One of the most important steps for decluttering is to divide and categorize your items. Stick to the four groups: keep, donate, sell, and toss. Start with larger items like furniture first, then make your way down to smaller items like documents, photos, and keepsakes. For easy organizing, use colors for each category and place tape or labels on items in the corresponding color. This is a great opportunity to catch any duplicate items you own so you can keep the one in the best condition and get rid of the excess. Be sure to also consider what maintenance tasks will be taken care of for you in your new home so you can identify what types of items you no longer need—such as lawn equipment, power tools, and more.

Sort Through Sentimental Items

Downsizing the family home and the items you’ve accumulated through the years can be an emotional process, but parting with some sentimental items can make room for new memories. Sort through items at your own pace and remember to be gentle with yourself. Talk with your family and schedule days and times for them to go through any items they may want. If they don’t want them, make a goal to either toss or donate those items. If you have any documents, photos, or artwork you can’t part with, consider taking pictures of them and scanning them into an online drive or computer file.

Sell Unwanted or Unused Items

Not sure what to do with your items after decluttering? If they’re in good condition, a smart way to make some extra cash for your retirement is to hold a garage or yard sale for unwanted or unused items. You can also consider working with an estate sale company or auction house if you’d prefer not to host the sale on your own. Alternatively, sell items on sites like eBay, Craigslist, and Facebook Marketplace. Just be sure to get antiques and other valuables appraised so you can get their full value!

Start Early

Give yourself plenty of time to downsize after retirement. Sorting through all the belongings you’ve collected over the years and making decisions about sentimental items can take longer than you expect. Starting early helps you avoid stress, make more thoughtful decisions, and enjoy a smoother transition to your new home. With time on your side, you’ll also be able to more thoroughly consider your budget, determine your priorities, and decide on the right downsizing option for you.

Get Support

From financial planning to physical labor and emotional decisions, downsizing for retirement can be demanding—but there are plenty of resources available to help lighten the load. Moving services can effectively pack and transport your belongings no matter the season. Professional organizers and decluttering services can take the stress out of sifting through personal belongings. And financial advisors or trusted real estate agents can guide you through the financial aspects of your transition.

Consider Smart Storage Solutions

Even after decluttering, you may still find yourself with more belongings than you have space for. Consider using at-home or self storage solutions to downsize more easily. Renting a storage unit at a local storage facility can be a great solution for sentimental or seasonal items. You can also store belongings with family members and friends who have extra room, or prioritize furniture with hidden storage to maximize space in your new home.

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Want to keep some of your sentimental belongings but don’t have room? Extra Space Storage has convenient storage facilities across the nation that can help with your downsizing transition. Find a storage facility near you!