Retirement and creating a home sweet home

As we plan for retirement, our home becomes a focal point. We’re confronted with a choice between adapting it to match our changing needs or exploring new options better suited to our desired retirement lifestyle. This decision includes social, emotional, physical and financial concerns, all crucial in creating our ideal ‘home sweet home’ for the golden years.

At First Financial, we specialise in helping clients achieve their ideal retirement — one that supports the lifestyle they desire for as long as they are able to enjoy it. Recently, our Financial Adviser, Joel Gleeson, assisted a couple who chose to downsize their home to better suit their evolving needs. As we discuss the elements to consider in creating the perfect home for this phase of your life, we’ll explore Joel’s client’s story as a guiding example.

The decision to downsize is often influenced by a variety of factors, from financial concerns to lifestyle preferences. For Joel’s clients, a husband and wife in their late 70s and early 80s, the choice to downsize stemmed from a combination of reasons. Living in a large family home became increasingly difficult as the wife grappled with health and mobility issues while the husband faced challenges in maintaining both the property and the garden.

They chose to sell their home and relocate to a retirement village, primarily motivated by lifestyle enhancements. Additionally, they sought to bolster their superannuation, which had been declining due to withdrawals surpassing investment returns. This will ensure financial stability for their future income needs.

Downsizing in retirement is an opportunity to simplify life, prioritise experiences and embrace a new chapter. By making strategic housing choices, individuals and couples can enhance their quality of life and maintain independence.

Although downsizing may be the optimal decision for many couples, it has its challenges. Transitioning from a beloved community and familiar neighbourhood, leaving behind a house filled with cherished memories, can evoke feelings of uncertainty and loss. Saying goodbye to a home that holds more than just physical value can be a deeply emotional journey.

This sentiment resonated deeply with Joel’s clients, who had called their family home theirs for many years before making the decision to sell and downsize. Their home held immense emotional significance.

Even if downsizing is the right choice, it’s important to acknowledge additional challenges.

Family dynamics play a significant role — will your new home be close to friends, family and support services? How will you manage their expectations during this period? Logistical concerns also arise, such as deciding what to keep, donate or discard when it comes to a lifetime of accumulated belongings.

For Joel’s clients, downsizing and moving into a retirement village has proven highly beneficial. They love their new home and enjoy building social connections with fellow residents. Their retirement village offers comprehensive services and amenities appropriate for their evolving needs, relieving them of the responsibility of maintaining a larger property.

Living in retirement communities offers a plethora of advantages beyond convenience and social engagement. These communities often feature various recreational and wellness programs, keeping residents active and vibrant.

The sense of security and peace of mind provided by on-site staff and emergency response systems can alleviate concerns about safety and healthcare access, improve quality of life and promote independence in a supportive environment.

Joel’s clients chose a retirement home because it was already equipped with features for independent living, while those who prefer to stay at home can make modifications to their family residence.

Making modifications to your home can significantly enhance its suitability for ageing in place, allowing you to remain at home comfortably for as long as possible. Basic modifications like grab bars widened doorways, and non-slip flooring improve safety, while smart technology, such as automated lighting, adds convenience and improves accessibility.

Beyond physical adaptations, consider modifying your home’s layout to minimise obstacles and create a more accessible environment.

This may involve relocating commonly used items to lower shelves, ensuring easy reach, or rearranging furniture to create wider pathways for mobility aids. Installing handrails along staircases and ramps at entry points can help, too.

“If maintaining a large home is creating challenges, don’t be afraid to downsize to a smaller place,” says Joel Gleeson. “It means you move into a home more suited to your needs, providing a life with less stress. Also, you can access capital from your home to do things you may not have thought affordable to do, like a holiday or a new car.”

By transitioning to a smaller home, individuals not only address immediate challenges but also contribute to the dynamic nature of the housing market.

“Another way downsizing clients should look at this is- the home you are selling is making stock available for a young couple raising their own family; they need the extra bedrooms you no longer need. You’ve made your family memories in that home, and now you’re allowing new family memories to be created.”

Deciding to downsize is deeply personal. Whether you move into a smaller home or retirement village or stay in the family home and make modifications, you can create a “home sweet home” in retirement.

While these years will differ in intensity from those spent working or raising a family, they can be equally rewarding, especially with proper financial preparation.

That’s why having the best financial guidance is crucial.

At First Financial, your comfort in retirement matters to us. We’re determined to help you achieve your financial goals and dreams. For personalised advice on financial planning, retirement planning or aged care advisory services, or to start your journey on the pathway to wealth, contact our expert team today.

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