The Pros and Cons of Downsizing For Retirement

At Tribute Homes, most people we talk to when they’re looking for an active adult community assume that downsizing is just a part of retirement. For a lot of people that is the case, but there are many pros and cons in downsizing that you should consider before you make the decision to move to a smaller retirement home.


While retirement is obviously a major change for anyone when it comes to finances, at Tribute Homes we recognize the change in lifestyle will be just as significant for both you and your family. If selling your current home and downsizing is part of your retirement plan, you will need to be sure to plan carefully so as not to make a mistake with this major life purchase. With that in mind, there are a number of potential downsides to downsizing in your retirement:

Downsizing your possessions can be emotional
Unlike other housing moves you may have made in the past, one where you move into a smaller home will often be harder due to the downsizing of possessions you’ll have to undertake. When you move into a smaller home, you are probably going to have to get rid of a lot of things you’ve collected over the years and decades—and that could be very emotional. You’ll have to make decisions that won’t be easy, deciding which items are trash and which are treasure.

Perceived loss of prestige
When considering the pros and cons of downsizing, one you might not have considered will be the loss of prestige that comes with purchasing a smaller home. After all, the size and location of your home conveys a certain status. For some people, downsizing to a smaller home would make them feel less successful, even if they’re doing it for all the right reasons. You may want to prepare yourself for some of these feelings.

No room for family gatherings
Over the past years and decades of owning a larger home, you may have gotten used to holding family gatherings, large and small, there. But if you’re considering downsizing, this may not be an option any more. Is there somewhere else your family can gather for holidays and the like? Another relative’s home? While it may only be a few times a year, this is an emotional decision to consider if you’re thinking about downsizing in retirement.


While there are certainly cons to downsizing in retirement, Tribute Homes recognizes there are many pros to consider as well. Here are some of the things Tribute Homes recommends thinking about before making a decision on what sized home to buy in an active adult living community.

Less stress
Downsizing will probably enable you to reduce your monthly mortgage payments—or maybe get rid of them entirely. Maybe you’ll still have a mortgage when you downsize, but the payment will be probably be much smaller. And when your mortgage is much smaller, or nonexistent, your stress levels will decline as well.

More income
When you’ve saved all that money on your mortgage, you can put it towards other things you enjoy or that you’ve always wanted to do. From taking a dream vacation, to buying a new car, to getting something nice for yourself every once in awhile, you can have the financial freedom to do more. You’ll also be saving money on maintenance!

Tribute Homes offers houses both large and small in some of the Carolinas’ most exciting active adult living communities—all at a incredible value. After you’ve gone over the pros and cons of downsizing, contact us to see which Tribute home and community would be right for you.

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