When it comes to your home in retirement, the decision to stay, sell or leverage its value is much like Goldilocks searching for the perfect oatmeal—not too hot, not too cold, but just right. Your home can be a warm, comforting asset or a burdensome bowl of expenses and upkeep. The key is finding the balance that suits your retirement lifestyle and financial well-being.

Let’s explore the “too big, too small and just right” aspects of home ownership during retirement.

Like Goldilocks discovering the oversized chair that was too hard to be comfortable, you may find that your long-time home no longer fits your needs. 

Maintenance on a large home can be overwhelming. The time it takes to complete regular yard work, repairs and cleaning will reduce the time that could be spent doing the things you actually want to do in retirement. Unexpected costs like a new roof, hot water tank or furnace can cause emotional distress and additional strain on a fixed income.

Ongoing monthly expenses such as property taxes and insurance don’t disappear when the mortgage is paid off—they often increase over time. In addition, utility bills for a house with rooms that are rarely used will further eat into retirement savings.

Ensuring your home fits you is more than financial. If you decide to stay, consider the accessibility of your home at a later date. Will the stairs, bathtubs or narrow doorways make mobility difficult as you age? If renovations are required to solve accessibility issues, at what cost? Our article Aging in place goes into more detail on what you’ll need to consider.

If your home is “too big” consider downsizing or selling to free up equity and reduce living expenses. Moving to a smaller home, a retirement community, or a condo with less upkeep might be a better fit throughout retirement.

On the other hand, Goldilocks also found that some options were too small or not quite enough. Selling your home too soon or moving into a space that doesn’t truly meet your current needs can be just as challenging.

Your home may represent financial security. Selling too early may result in a cash windfall but it also means letting go of a valuable long-term asset.

Selling your home in favour of renting can create a sense of freedom, but may also come with higher costs and long-term instability. Renting removes nuisance expenses associated with home ownership such as repairs and maintenance are now the responsibility of the landlord, freeing up your wallet and time. Over the course of retirement, however, rental rates may increase, which could necessitate another move. 

Selling your home and purchasing a new smaller home does come with some costs. Realtor fees, moving expenses and perhaps renovating or furnishing your new space will decrease your perceived windfall. Retirement communities or assisted living facilities may have hidden costs including unexpected cash requirements or monthly fees.

Selling your home to relocate may mean moving away from family, friends and familiar surroundings. Adjusting to a new community will take time, and not every downsized home or retirement community feels like “home.” Your new home and location should allow you to access required care and be close to those that can provide assistance when needed.

Explore options such as renting before committing to a big move. Consider a compromise by downsizing to a single-story home that still offers independence and community connection.