In a survey of 4,000 Baby Boomer households conducted by the non-profit Demand Institute, 63% of Boomers plan to stay in their current home once they retire. This is a huge number and is driven by a number of financial and emotional issues that we will all face one day. With more retirees staying in their homes, what does this mean for families?
The real question is when is the right time to stay and the right time to find something smaller, perhaps less expensive, and easier to maintain? This is a tough question for many people since there is often a lot of emotional attachment to the home. After all, it may be the home where you raised your kids, you have lived in it all your life or you may just like the neighborhood and the people who are your close neighbors. it could also just be sentimental reasons that keep 63% of people who are retiring staying in their homes.
Retirees Staying in Their Homes – Considerations
The most obvious question is whether you can afford to stay where you are. There is a general day to expenses for utilities and care of the lawns etc. Then there are repairs that are needed from time to time and as we get older, we can usually do less and less which means that either it costs more to hire help or the house gets that run-down look, and the value of the home declines.
Health is another issue that affects your ability to continue with maintenance. Health costs may also dictate that the house needs to be sold to cover the cost of health treatment unless you have lots of savings to live on.
Moving is not inexpensive. There is the cost of legal and real estate fees. The actual cost of moving and doing upgrades the costs can add up very quickly. In some markets, that condo you are looking at just might be more expensive than the house you are selling.
For many seniors, it is just simpler to stay in place. Spend the money that would have gone to cover moving costs on maintaining your home. It becomes a very personal decision based on the situation, finances, emotional ties, and many other personal issues. Try to work through them one by one. Remember that no decision or delaying a decision is actually a decision to maintain the status quo!