Your early retirement is a great opportunity to think about all the exciting new things you want to do. But is your current home the right property to help you make those dreams a reality?
Is it larger than you would ideally like for this next stage of your life, or would you like to move to the sticks so you can gaze at the stars on a clear winter’s evening?
Although property prices in many areas are at record highs, where you choose to live is about far more than money. Rather than automatically seeing retirement as a time to downsize, we explore three important considerations when making this life changing decision.
1. How would you like to spend your time?
One question we ask clients who are going through the transition into retirement is “What do you enjoy doing and you would like to do more of?”. This helps bring some clarity to where and how you may like to spend your new-found free time.
Being intentional with your time helps you shape your future plans and means you’re more likely to make the most of this exciting new stage of life.
If you’ve spent years balancing work with the rest of your life and feel like you’ve not had the chance to draw breath and treasure your current environment, retirement may be the perfect time to make the most of your current surroundings.
Having the time to enjoy taking care of your home and garden can be hugely rewarding. Or perhaps an opportunity to get creative and redesign your home to suit your new lifestyle.
In contrast, you might prefer retirement to be focused on frequent holidays, far-flung adventures and spending UK winters in the sun. If that’s the case, a cosy property that doesn’t need too much maintenance may be the right choice for you.
Or is it the local area that makes all the difference for you? Being close to a nice pub, somewhere to enjoy coffee and cake, or not having to travel too far to find a beautiful place to take your dog for a walk.
2. What are your dreams for the future?
Retirement is the time to live the dreams you haven’t had the opportunity or time to fulfil previously.
Given the daily commute and school catchment areas are no longer a core part of your decision making, do you hope to find a rural escape or a home with a beautiful sea-view? Have you lived and worked in a town or city and now the countryside and life at a calmer pace is beckoning? Perhaps you love sailing and want to be close to a marina.
Maybe you want to upsize to a property with enough space to keep some animals, perhaps even a field and stable for a horse. Or do you dream of running a boutique B&B in the Welsh mountains to make the transition into retirement?
You may wish to be closer to family and friends so you can spend more time with your loved ones, this could mean moving closer to them, or giving your current home an upgrade to make it a space that’s perfect for entertaining.
Or have you been living in your dream home for years and treasure being surrounded by a lifetime of precious memories. Is your dream to continue enjoying your home for as long as you can?
3. What practical and financial considerations should you think about?
Although we’ve been focusing on the more emotional elements of decision making, it’s also important to consider some of the more practical aspects of your home.
If you have a large or period property, it will require more time and money for maintenance. Is this something you’ll enjoy getting stuck into during your retirement? For some, home improvements become a challenge to relish. For others, well, it’s like watching paint dry!
While most of us consider ourselves invincible, considering how practical your home is likely to be for the longer term is an important part of this equation. Would a single-level property suit you better, or would a smaller garden be easier to manage?
Does your home form an important part of your financial provision for retirement? You can’t spend the money that’s tied up in your home, so you may want to downsize to release some money to spend on the things you most enjoy, now you finally have the time to do so. Or maybe you want to gift some money to your children to help them and as part of your strategy to reduce your Inheritance Tax liability.
Financial planning can help you understand the impact that life-changing decisions, such as upsizing and downsizing, can have on your financial future. Using cashflow modelling, we build a number of different scenarios to reflect the possibilities you have in mind.
Understanding your options means you can make confident decisions about your financial future and focus on what’s most important to you.
At Life Matters, we’re passionate about helping our clients have the best retirement they can. If you’d like to have a chat about whether downsizing might be a good idea for you, please email us at your@lifemattersfp.flywheelstaging.com or call 01202 025481.