Less space, more freedom: Is it time to downsize?

As retirement approaches, many Canadians begin to evaluate whether their current home still meets their needs. For some, downsizing presents a path to greater financial freedom, easier home management and an improved quality of life. 

“In my experience, this is often the stage where people start thinking not just about their finances, but about how they truly want to live in the years ahead,” says Dave Lee, Senior Wealth Advisor at Scotia Wealth Management in White Rock. 

In this first article of ‘Your Next Chapter Series’, Dave shares key insights to help retirees make informed decisions about whether downsizing is the right move. 

From a financial perspective, selling a larger home and moving to a smaller property can free up equity, reduce maintenance costs and lower property taxes,” Dave says. “This extra money can be invested to generate additional income or used to enhance your lifestyle.” 

But the benefits aren’t just financial. Downsizing often brings welcome lifestyle changes. 

“A smaller home is generally easier to manage and maintain,” Dave explains. “It may also allow you to move closer to family, friends or key amenities, improving your quality of life and social connections. For those who love to travel, the ability to ‘lock and leave’ is a major advantage.” 

Health and mobility are important considerations. “A smaller home may be more accessible and easier to navigate as you age, reducing the risk of falls and injuries. Financial benefits may be top of mind, but health and lifestyle factors should absolutely be part of the decision.” 

“Moving can be a stressful and emotional process, especially if you’ve lived in your home for many years,” Dave says. “There are also costs to consider, including real estate fees, moving expenses and any renovations your new space may need.” 

Another factor to weigh is the potential need to adjust to a new community. “If you move a long distance, it may take time to rebuild social connections and routines,” Dave notes. “And a smaller home often means downsizing your possessions, which can feel challenging for some and liberating to others.” 

He recommends a thoughtful approach. “One strategy is to identify the most important attributes of your current home and aim to preserve those in your next living space.” 

With planning and support, downsizing can be a positive step toward a simpler, more flexible lifestyle. Stay tuned for the next instalment in the ‘Your Next Chapter’ series, where Dave discusses aging in place and home safety. 

For more information, contact Senior Wealth Advisor, Dave Lee CIM, CFP, FCSI, at Scotia Wealth Management in White Rock by email at [email protected] or by phone 604-535-4743. 

Read more from Dave Lee online at www.dave-lee.ca/publications.