Downsizing in Retirement

If you’re thinking about downsizing your home, there are a number of things to consider, including why you want to downsize, how it might impact your financial situation and the possible benefits of making the move. 

But firstly, what is downsizing?

While the term downsizing is usually just associated with moving into a smaller home, there’s actually a bit more to it than that. The goal of downsizing is really more about gaining freedom and independence.

The benefits of downsizing

Many people choose to downsize their family home after their children have moved out, or at retirement age to suit their new life stage. A smaller home requires less maintenance, and often comes with smaller costs, so downsizing can help people to gain more financial independence and the freedom to enjoy life.

Downsizing can also be a great opportunity for people to move to a new location, so they can be closer to the people or places they love and improve their lifestyle. Many retirees choose to downsize so they can be closer to health services, shopping centres, public transport, friends and families. At St Ives villages, residents have access to all of these amenities and more. 

Accessibility may also be a reason why someone might downsize. Retirees may choose to move to a home that has fewer or no stairs and other features designed to help prevent falls. 

By downsizing, some retirees are able to retire earlier as housing costs are minimised. 

Accomodation options for downsizers

Downsizing doesn’t just have to mean moving from a larger home into a smaller home. There are a variety of options out there to suit a wide range of preferences and budgets.

Downsizing may involve moving into a duplex, villa or apartment or it could mean moving into a retirement community designed specifically for retirees!

St Ives operates eight retirement villages throughout WA, each of which offers access to a great range of amenities like clubhouses, gyms, art studios and restaurants. With numerous locations to choose from and a range of living options on offer, including houses, villas and apartments, our villages are a great option for those who are ready to spend less time on maintaining their home and more time enjoying the things they love. Whether it be pursuing hobbies, socialising or setting out on overseas adventures while knowing everything is taken care of at home, St Ives gives retirees the freedom to live the way they choose. 

Government incentives to support downsizing

Did you know that there are a number of government incentives in place to support downsizing in Australia? 

For example, the Australian Government offers a superannuation incentive for downsizers. This incentive allows people aged over 60 to put up to $300,000 per person (or up to $600,000 per couple) from the net proceeds of their family home sale into their super. 

The superannuation downsizing contribution incentive is great for self-funded retirees who want to top-up their retirement income.

In some stages, stamp duty incentives also exist for downsizers. 

Planning to downsize

If you’re thinking about downsizing, it’s a good idea to discuss it with your family. Selling the family home is a big decision both financially and emotionally, as there is often quite a lot of sentimental value attached to it. 

It’s important to get legal and financial advice before you decide to sell and you should also take the time to weigh your options when it comes to deciding where you will live next. If you’re considering moving to a retirement village, we encourage you to get in touch with us and book a village tour!