Back in the day, when people retired, they would typically downsize their family home in favor of something smaller and more affordable.
I mean, after the nest is empty, what’s the point in having a huge home when it’s just two people? It just makes sense to downsize.
There’s less cleaning and maintenance, and it’s cheaper!
Most retirees need to boost their income in any way they can, so…
^empty nesters and their increased income
And yet… there’s a growing trend of retirees taking the opposite approach. Merrill Lynch and Age Wave did a survey of over 3,500 people, and the results showed that 40% of retirees didn’t downsize in their last move, and in fact, 30% of retirees upsized!
There are a few reasons this trend could be happening:
- They’ve simply found a home that they like better, and it’s bigger than the one they had before.
- Without children to take care of, they have more money to spend on housing.
- The nest isn’t empty at all – their adult children still live at home, or they’re caring for elderly relatives, and they need more living space.
- Interest rates are super low right now, making owning a larger home more affordable.
- COVID-19 strikes again. People have been working from home and spending significantly more time there, making people rethink where they live. Who wouldn’t want to improve the place they spend all their time?
I’d love to know what your goals are. What kind of home do you see yourself retiring in? Do you want to upgrade, or are you going the traditional route and downsizing?
No matter what your dream is, you have to plan for it. To ensure that your plan will actually get you where you want to go, book a 15-minute chat with me by calling 513-563-PLAN (7526) or booking online.
Regards,
Nikki Earley, CFP®
