Downsizing: Expert Advice for Your Next Move
Retirement brings exciting new opportunities, and downsizing your home might be part of your plan. At Olive Grove Financial Advice, we help people like you make this change smoothly, with clear financial advice that makes sense.
Moving to a smaller home can free up money, reduce your ongoing costs, and create a more manageable lifestyle. But we understand it's also a big decision with financial implications that need careful thought.
That's where we come in. We'll help you work through the money side of downsizing in plain English – no complicated jargon or confusing terms. Our goal is to help you make choices that give you more freedom to enjoy the things that matter to you in retirement.
Understanding Downsizing in Your Retirement
We'll guide you through understanding how downsizing could affect your pension, what to do with any extra money from selling your home, and how to set yourself up for a comfortable future.
Let us take care of the complex bits, so you can focus on planning the retirement lifestyle you've been looking forward to.
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Why Downsizing Makes Sense For Many Retirees
Retirement downsizing offers numerous advantages that can enhance your lifestyle and financial well-being. Here are some key benefits to consider:
More Money In Your Pocket
Selling your larger home and moving to a smaller one can free up extra cash that could really help your retirement. You might use this money to boost your savings, take that dream holiday, or simply have more financial breathing room. A smaller home usually means you'll spend less on heating, cooling, repairs, and council rates too - giving you more control over your day-to-day spending.
A Simpler Life, More Freedom
Downsizing means saying goodbye to all those time-consuming home jobs. With a smaller place, you'll spend far less time on maintenance, cleaning, and gardening. This gives you the freedom to focus on what really matters - whether that's exploring new hobbies, catching up with friends, or simply relaxing with a good book. A smaller home means less stress about upkeep and more opportunity to actually enjoy your retirement years the way you've always planned.
Everything Close By When You Need It
Moving to a well-located smaller home can make life much easier. Imagine being able to walk to shops, medical centres, and social activities rather than always needing to drive. Being closer to family, friends, and the services you use regularly just makes day-to-day life simpler and more enjoyable.
How Can Moving Affect Your Entitlements?
Visit our FAQs page for more of your questions about downsizing answered.
Is Downsizing The Right Option For You?
Deciding to downsize is a significant step, and it's important to consider if it's the right choice for your unique situation. At Olive Grove Financial Advice, we help you weigh the pros and cons, taking into account your financial goals, lifestyle preferences, and future plans.
Our comprehensive downsizing advice helps you make a well-informed decision that aligns with your vision for retirement. These are some things to consider if downsizing is the best move for you and how it can impact your life.
Is Downsizing Right For You?
We get it - the idea of moving from your family home can feel overwhelming. If you're wondering whether downsizing makes sense for you, here are some simple questions to think about:
Take a look at your current home
Do you still use all the space you have? Is the garden becoming too much work? Are stairs becoming a problem?
Weigh up the pros and cons
Downsizing could mean more money in your pocket and being closer to family or services you use regularly. But it might also mean less storage space and fewer bedrooms for when the grandkids visit.
Other Ways To Make Your Home Work For You In Retirement
Your home holds memories and moving can be a big upheaval. If you are not ready to move, there are other ways to consider to make your current home support your retirement finances.
Turn Your Extra Space Into Income
If you've got more room than you need, why not consider renting out a spare bedroom or converting part of your home into a self-contained flat? This extra income could help cover your bills or pay down any remaining mortgage. Many retirees find this option gives them both financial benefits and some welcome company.
Access Your Home's Value Without Moving
A reverse mortgage (also called equity release) lets you tap into the value of your home while still living there. It works by providing you with either a lump sum or regular payments based on your home's value, with no need to make repayments during your lifetime. This can be a practical way to boost your retirement income while staying put.
Finding What Works For Your Situation
Everyone's circumstances are different - what works for your friend or neighbour might not be right for you. These are just a couple of options that might help ease financial pressure without the need to downsize.
At Olive Grove Financial, we take the time to understand your specific situation. Our team can explain these options in plain English and help you figure out which approach makes the most sense for you and your retirement plans.
Impact on Age Pension or government benefits
Downsizing can have a major impact on Age Pension or government benefits. The key factor is to understand how the assets test and income test will be affected by the changes. As such, careful consideration should be taken before making any decisions that could potentially reduce your entitlement to Age Pension or other government benefits. It's important to note that your place of residence is not included in an assets test.
If you sell your home and intend to use the money to buy, build, or renovate another property, you can be excused from paying taxes on the revenue for a maximum of 12 months.
What to do after you downsize
Once you have downsized, the next step for most people is to consider what to do with their newly freed-up capital. Renting for a while is one option, as it can enable you to explore a new area and see if you like it.
For those looking to invest, there are numerous options available, with many seniors also eligible for the Commonwealth Home Support Programme which can assist with independent living and daily tasks.
Ultimately, it is important to consider your own individual circumstances when deciding what to do after downsizing and make sure you have a financial plan in place for the future.
Get independent financial advice
Talk to our team to discuss your options and get expert financial advice tailored to your circumstances. We understand that everyone’s financial situation is different, and our team of advisors can help you make the best possible decision for your future.
Our advice is independent, so you can be sure it’s in your best interests. Contact us today to discuss how we can help you take control of your finances.
Why Choose
Olive Grove Financial Advice
Trusted Advice Since 2001
We have helped hundreds of clients realise greater financial security. Offering a holistic approach coupled with almost 20 years of experience, enables us to unlock more options for your family's aged care situation.
Fast Turn Around
We understand that aged care can often be unexpected, and because we are the aged care specialists, we can quickly set up a financial structure and solution, including execution.
Save Tens of Thousands of Dollars
With a tailored strategy developed by one of our financial advisers specialising in aged care and the right asset structure, you can ensure that your loved ones are set up with a long-term plan and reduced financial burden.
A Passion for Helping Clients
We have a deep understanding of the emotional stress when organising the future through any of the phases of retirement. We will work with you and your family to structure financial solutions that meet your needs.
How Financial Advisers specialising in retirement planning to aged care can make a difference in achieving your retirement goals.
We have helped more than a thousand families plan for their
aged care and age pension.
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Ken
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