Helping Seniors Downsize

While the idea of living out your retirement years at home may be appealing, there are some important considerations from both a financial and a lifestyle perspective. For starters, the cost of aging in place is significant. In fact, a recent survey revealed that only 12 per cent of respondents have enough room in their budget to do so. In addition to the financial considerations, aging in place also has important physical and social challenges. Factors such as safety, mobility/accessibility, and whether you can manage other daily activities need to be considered. And lastly, access to social connections, community and recreational activities should also be taken into account. The COVID-19 pandemic has highlighted how harmful social isolation and loneliness can be to our mental and physical health, particularly affecting seniors.

If you or a loved one are planning to downsize, here are some helpful tips to ensure a smooth transition:

1. Research your options

Dedicate some time to reflect on your ideal vision for aging and do some research to have a better understanding of what options are available to you. You might need to involve specialists even at this early phase to get a better idea of costs, so that your vision is realistic and aligns with your financial and medical situation. Helpful professionals to contact at this phase might include your family doctor, your financial advisor, a realtor and possibly, an aging consultant.

2. Talk to your family and loved ones about your wishes

Articulating your vision and plans with your family, before a crisis, can help you (and them) avoid scrambling to create a roadmap at a time of heightened emotional distress. Plan a conversation for a time that is not stressful and include all relevant parties in the discussion. If you’re nervous about conflicting opinions, consider involving a neutral third party to mediate the discussion.

3. Seek professional guidance

If you’ve decided to downsize and move either to a smaller home/apartment, to a retirement community or to a long-term care home, you might want to contact a realtor that specializes in this market. For most Canadians, their home is their largest asset and accessing this equity will likely be crucial to execute your plans. A realtor should be able to give you an estimation of how much your home is worth and make recommendations for how to maximize its value. A well-connected realtor should also be able to give you recommendations for retirement communities in your desired area that are within your budget and a good fit for your lifestyle.

4. Stay positive

Change is hard, especially if you have been accustomed to a particular lifestyle for so long. Trust the plan that you’ve set in place and focus on the positive changes that you can look forward to. If you’ve decided to downsize to a retirement community, think of the amazing amenities and activities that you’ll be able to enjoy. If you’re moving closer to family, focus on all the quality time you’ll be able to spend together. Avoid catastrophizing and magnifying situations and instead reach out to a close friend, family member or professional to help you find a solution or to calm your worries.

5. Surround yourself with loved ones throughout the transition

Make sure that you have a loving support system to help you through this transition. Downsizing and setting a longevity plan in place involves much physical, emotional and mental stress that is unrealistic for any one person to undertake on their own. Trust your team of selected professionals to take care of their areas of expertise and make an effort to reach out to friends and loved ones during this phase.

I hope these pointers are helpful as you or a loved one embarks on the journey of planning for the post-retirement years. For more resources, check out my recent podcast episode, where I interview Michael Shuster, a seniors real estate specialist as he shares his downsizing expertise.