Move or Stay?

A Big Decision with Long-Term Impacts

As you approach retirement, one of the most significant financial and lifestyle choices you’ll make is whether to stay in your current home or move. This decision isn’t just about where you live today; it’s about setting yourself up for financial stability and a comfortable lifestyle for years to come.

If You Plan to Stay in Your Home

If staying put is your preference, there are key financial and practical steps to take to ensure your home remains a good fit for your retirement years.

Pay Off Your Mortgage Before Retirement

One of the biggest burdens in retirement is ongoing housing costs. Paying off your mortgage before you retire should be a top priority. To accelerate this process, consider reducing contributions to your workplace retirement account and only contribute enough to receive any employer matching funds.

Make Sure You Can Afford to Stay

Consider the long-term costs of maintaining your home:

• Annual property taxes and insurance
• High maintenance costs
• The age and condition of major systems like your roof and HVAC

Make sure your essential living costs, such as housing, groceries, and utilities, can be covered by guaranteed income sources like Social Security, pension payouts, or an annuity. Avoid relying on a reverse mortgage to pay the bulk of your expenses. While reverse mortgages can provide tax-free income, they should not be your primary financial safety net.

Plan for an Aging-Friendly Home

A home that suits you today may not be as functional in your 80s. Consider making modifications now to accommodate future needs:

• Install grab bars, non-slip flooring, and wider doorways
• Ensure your bedroom, bathroom, and laundry are accessible without stairs
• Look into the Certified Aging in Place Specialist (CAPS) designation, offered by the National Association of Home Builders (NAHB), for remodeling professionals specializing in aging-in-place renovations

Avoid Social Isolation

Your home should be a place of comfort, but not isolation. Think about whether your home’s location will make it easy for family and friends to visit. Will you have easy access to social activities, healthcare, and public transportation? Social isolation can be a serious issue for retirees, leading to depression and health problems.

If You’re Considering Moving

For many retirees, moving can offer financial relief and a better quality of life. Here’s what to evaluate:

Do the Math on Financially Downsizing

Selling your home and moving to a smaller, more affordable place can free up equity and reduce maintenance costs. Renting might be an option as well, especially if you want to try living in a new area before committing to a home purchase.

Look at the Case for Moving Now

Waiting too long to move could make the transition harder. Moving in your 60s or early 70s gives you time to establish a new community, find healthcare providers, and adjust to a new lifestyle before mobility becomes a concern.

Consider a Family or Friend-Oriented Move

Some retirees choose to move closer to family or even share housing with friends or relatives. Services like Silvernest (silvernest.com) match older adults with roommates, helping to reduce living costs and combat social isolation.

Renting as a Way to Test the Waters

Renting for a few years can be a great way to explore a new city, downsize without commitment, or experience retirement community living before buying. If you’re considering moving from a city to a suburb (or vice versa), renting first can provide valuable insights.

Other Key Considerations for Retirement Living

• Emergency Fund: Have at least 8 months of essential living expenses saved.
• Memories Travel With You: If you leave your home, remember that the memories and traditions you cherish come with you—it’s the people, not the place, that matter most.
• Book Recommendation: What’s the Deal with Retirement Communities? can provide insight into retirement housing options.

The Bottom Line

Whether you decide to stay in your home or move, the key is to plan ahead. Ensure that your financial resources, home accessibility, and social connections support a fulfilling retirement. The decision isn’t about what you’re giving up—it’s about setting yourself up for peace of mind and security in the years to come.

Orman, S. (2020). The ultimate retirement guide for 50+: Winning strategies to make your money last a lifetime. Hay House.