Rightsizing

Extracted from Dare to Retire Free by Kristin Sutherland and Di Murphy, Smart Retirement Publishing, RRP $39.95

“If life is a journey, moving is like taking a detour through a construction zone.” 

– Anon

We were excited the first time my husband and I saw our house.It was the perfect fit for us. My husband and I had always talked about having a large family – three boys and two girls – and the place was meant for us. It was large, spacious, stylish, and most importantly, it had loads of rooms. I was satisfied and immediately talked my husband into buying it. The rooms were what I needed for the children we were going to have. Fast forward a few years later, when the kids started coming, I was thrilled that we bought the property. There were enough rooms in the house for the kids to have space for themselves. Cleaning was hard work, but I managed it. Four decades later, the children had all grown and moved out to start their families, and my husband and I would often visit them, rarely would they come to stay with us.

“Sometimes, downsizing is not about reducing the size of your dreams, but about expanding the magnitude of your focus.”

We were left with a question, why do we need such a large residence?

As we aged, cleaning became tedious, as there were too many rooms, and few were in use. The maintenance costs of such a large property had become a matter for consideration, too and we questioned why we needed such a large place.

I thought I was the only one facing this question, but when I reached out to older women like me, I realized I was not the only one. We had all pushed for a spacious house for the kids, but now that they had left home, we had yet to figure out what to do with the large house.

Well, there are options, and a good retirement plan should consider both present and future accommodation needs. Some options include Downsizing, Resizing, and Rightsizing.

“Retirement downsizing is not about reducing your dreams, but rather about simplifying your life to make room for new adventures and meaningful experiences.”

Downsizing

Downsizing is exactly what it sounds like; it is simply defined as moving to a smaller home than your current one. And is often a decision made by those who find themselves with an empty nest, are struggling to deal with the upkeep of their home or find the maintenance costs excessive. It may be that you are eager for a change, want to simplify your life, want to move closer to friends or family members, or want to start a new phase in life.

Everyone is different, and you and your partner may prefer to stay in the home despite the children moving on and its size. I’ve heard from many before you, stating; “I will only leave this place in a box”.

One of the significant advantages of downsizing is the potential for releasing the equity tied up in the house, as the value of your home will, most likely, have increased significantly over the decades since its purchase. In the USA, house prices increased by between 120% to 185% each decade, and in the UK, the rise is between 103% and 124%. Similar rises are seen in most developed countries.So, depending on how long you have owned the property, selling it to buy a smaller and potentially cheaper one could mean extra cash to fund the completion of many activities on your Bucket List whilst living mortgage free.

Another advantage of downsizing is that you can choose a house that suits your current and perhaps future needs. Let’s face it, what you found aesthetically pleasing and attractive three decades ago is probably not what you find attractive now. When I was younger, I’d always wanted a place with a big garden, but the older I got, the more I realized how difficult it was to maintain a garden. Downsizing for me would be a house with a small, manageable garden. For others, it may be a house with no stairs due to limited mobility, or a place by the sea, just because it’s been a lifelong dream, or a small apartment with no lawns or gardens to upkeep as you want to be able to walk out the door, worry-free, and travel for extensive periods of time.

“Simplicity is the ultimate sophistication.”

– Leonardo da Vinci

While downsizing has many benefits, it does mean a tremendous change. It is wise to recall the top 5 most stressful events of life: Death of a loved one, Divorce, Moving, Major illness or injury, and Job loss. Moving is one of the most significant and stressful events in life, so hasten slowly.

There are many questions you should ask yourself before you commit to this life-changing event. What is the main reason I would consider downsizing? Where do I want to live? Are there medical and shopping facilities close by? Do I want to stay in the same area, move to the seaside, or buy a luxurious flat in the center of town? Do I want to live near family and friends? Would I consider moving to another country to be close to family? Will I be financially better off? How does downsizing fit into my retirement plan?

“The smaller the footprint, the larger the life.”

– Unknown

Resizing

Kimberley and Warwick were on the verge of downsizing, but before they took that step, I introduced them to the concept of resizing as an alternative as I knew they loved living on the canal overlooking the waterway, especially as Warwick, soon to retire from his position as an elite firefighter, was a keen fisherman and paddleboarder. The idea of resizing demonstrated that it is not necessary to be hasty about moving out of a big house because of the empty rooms but to optimize the use of those rooms depending on your needs or desires.

Kimberley and Warwick had very specific plans for their retirement.Kimberley, a commercial artist, wanted to fulfill her dream of teaching art to developmentally delayed young adults as well as providing instruction in watercolor painting.

With a bit of renovation, Kimberley and Warwick were able to convert a large front bedroom into a purpose-built art studio, complete with a tiled floor, cleaning and water facilities, and enough room for 4 – 6 students.Warwick, on the other hand, planned to transform part of the large garage into suitable facilities to store his boat and trailer, his paddle board and fishing tackle, along with all his fitness gear and a road bike.

What’s the lesson of this story? It’s simple. The whole concept of resizing is to look around your house and figure out how to use the spaces around the house creatively.

“Less is more.”

– Ludwig Mies van der Rohe

You may need clarification on what’s right for you and your partner to enjoy during your retirement years. The best place to draw inspiration is from your dreams and ambitions. When I talk to people about resizing their homes during retirement, I always advise them to turn their homes into a haven that will help them grow and achieve their goals and dreams in retirement. There are lots of ideas that we can pursue while we’re considering resizing our rooms.

Rightsizing

One couple I know was considering moving from a reasonably large and comfortable home on a large estate where they raised sheep, cattle, and one or two pigs. The house was sizeable enough to accommodate their 3 (three) children, their partners, and 6 (six) grandchildren for family celebrations. The property also provided a workspace for Jim, who had taken up woodturning as soon as he had retired, and Helen needed space to carry out wool spinning and many other craft activities.

They had decided to move from the rural property to a coastal town closer to family and friends – but before they ventured into house searching, they sat down and wrote down their accommodation needs. They still needed accommodation to encourage family visits; Jim needed a dedicated space for his woodturning or an option to add that space to a property; Jim also needed an office as he enjoyed his association with the woodturning group as he had taken on the role of newsletter editor, and Helen needed room for the many craft activities she would continue to pursue.

Jim and Helen discovered they needed a larger house, not a smaller one, but with much less land to care for; just enough to grow fruit and vegetables. Not only did they find a house to meet these needs, but they converted part of the garage to add another bedroom, and Jim built a magnificent stand-alone woodturning shed where he spent hours each week making unique timber art.

“Simplify your life. You don’t grow old, you just become a classic.”

– Unknown

Apart from downsizing and resizing or rightsizing, you can consider many other options when considering changing your home. Some of these options are uncommon, but you might find the right fit in the following options.

Other living arrangements

1. Retirement village or development for older adults.

If, at retirement, you don’t want to live alone and you don’t want to burden a relative, you could decide to sell your house and move to retirement buildings. It’s an excellent place to form quality social relationships and mix with other retirees. Numerous developments are currently being constructed worldwide as the baby boomer generation moves into older age.

“Retirement is the time to downsize your possessions and upsize your experiences.”

– Unknown

It’s essential to check out all the benefits each development offers, including what percentage of the purchase price will be forfeited back to the developer and what maintenance costs will be charged. And is it permissible to share in profits when the property is sold?

2. Living overseas.

Not as common as most people are comfortable aging in a city they’ve lived in for much of their life. Still, if you’re the adventurous type and would like to explore other countries and cultures, moving overseas could be for you. It is the way to explore places worldwide with much cheaper living costs than in your home country. Many countries in Asia, for example, have more affordable housing, food, and medical expenses than other Western countries. It might be worth looking into how much it would cost you to live somewhere overseas; you may even be able to enjoy a higher living standard than you do now.

“It’s not about how much you have, but how much you enjoy that matters in retirement.”

– Unknown

For example, look at what you could buy in Chiang Mai for about $350,000, which would only get a little in other developed countries or major cities worldwide.

How about this 135m2 condo, with 2 (two) bedrooms, 2 (two) bathrooms, a gym, and its own plunge pool and security 24/7? What would something similar cost you?

Then you will need $19,000 per year to live on, including health care costs—quite different from living in other major cities. You could live for 6 (six) months in an apartment somewhere and 6 (six) months overseas for the same amount of money!

3. Communal Living

Have you heard of this type of lifestyle? Before science and technology overwhelmed the world, it was a common style of accommodation. People would live in a commune-like environment with extended families and like-minded people staying together in a community, each building and living close to one another. If you don’t like being alone, this could be the answer for you. It’s one of the best retirement options because you’re never alone. There’s always an aunty to visit, kin to greet, or a cousin or nephew hanging around. Communal living still exists in rural areas, but urbanization is gradually eroding this culture.

“Downsizing in retirement is about freeing yourself from the burden of excess and embracing a lighter, more fulfilling lifestyle.”

– Unknown

There are new developments in places such as New Zealand that, for sustainability or cultural reasons, have people living communally. They may share common spaces and use these for cooking or entertainment but have smaller houses nearby that suit them most of the time. So, if grandkids or friends come to stay, it’s the facilities in the common area where meals are prepared, or additional sleeping facilities are provided.

4. House Sitting

House sitters are in demand worldwide. As travel is so easy these days, there is always someone looking for a house sitter. Whether it’s caring for a home in a foreign country while the occupants travel extensively or watching beloved pets while the owners are at work or away on vacation. Here is a perfect opportunity for a retiree to revive the joy of having a pet or living in a foreign country whilst enjoying free accommodation.

“Retirement downsizing is the art of letting go, so you can create space for new chapters in your life.”

– Unknown

One couple I knew was planning a 6-week holiday but wanted their pet dog to stay home while away. They sourced a house/dog sitter about 6 (six) months in advance as there’s high demand for good dog sitters. The couple they engaged were retirees from Scotland who spent most of their time traveling around the world, house and pet sitting. They had quite a few regular commitments, and Auckland was one of the places they regularly visited as their son and his family were located there, and by combining house/pet sitting, they could spend at least one month each year close by without incurring accommodation costs.

“As you downsize in retirement, remember that memories weigh nothing, but possessions can weigh you down.”

– Unknown

This Scottish couple had many fascinating stories to tell of their house/pet-sitting adventures.

One such story was the time they agreed to a very last-minute house/dog sit in the south of France. They had little contact with the people who had contracted them, and they started to worry. They only received the property address while they were driving into the village close to the house they were to care for. Upon arrival at the gates of a mansion, they were thrown the keys to a brand-new Range Rover that was to be used to take the dog for a walk along the beach. And they could also use it for their personal use. They spent the next month living on a French estate enjoying the area and keeping the dog company. There was nothing else to do as the housemaid, pool boy, and gardener attended to all those other chores.

If only we could all be so lucky? It might be worth a try!

“Retirement downsizing: Making room for new adventures, cherished moments, and a simpler, more intentional life.”

– Unknown

5. Tiny House

This is not for everyone, and I can hear some of you thinking, ‘No way.’ But it’s worth looking at this video (https://www.youtube.com/watch?v=BlQ3yuUmBiw) on YouTube of a woman in her 80s going tiny. Merle tells her story of moving into a little house in Victoria, Australia, and how well this tiny house option purchase went for her. It was an extremely economical option, with a total cost of just $150,000.

6. House swapping

Yes, it’s an option. House swapping is something to consider. There are numerous websites where further information can be found. There’s even a special site for the over 50’s. HomeExchange 50Plus will arrange a swap of your home or holiday house with other like-minded seniors for a vacation in your own country or worldwide. The following are considered among the best other swap sites: HomeExchange. People Like Us. Love Home Swap. HomeLink Home Exchange. Switchome. Trusted Housesitters. Couch Surfing. Wwoof.

There are so many options to consider as you approach retirement. Make sure your home suits your new lifestyle as well as matching all the dreams and hobbies you have. So, once you have worked out your retirement plan, one that is filled with purposeful activities, find the home that fits it.

Remember, these quotes are meant to inspire and provide perspective on downsizing in retirement, but the true meaning and impact will vary for each individual.

Activity

1. Write (three) things that would be essential if you were to consider rightsizing (e.g., number of bedrooms, man cave, hobby room, garden – large or small, facilities nearby, transport, proximity to family, etc.)

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2. If you were to live or house-sit overseas, which countries would you most likely choose?

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3. List 5 essential lifestyle characteristics for your dream retirement area, e.g., Close to water, close to mountains, on a golf course, pleasant climate

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