While some embrace it with open arms, others may feel hesitant about the potential changes to their lifestyles, in particular, downsizing into a smaller home or moving to a retirement village.
But making a plan for downsizing in retirement is one of the best ways to improve decision-making and gain a sense of control about the future.
Tony Randello is the Chief Executive Officer of Aveo, which oversees 67 retirement living communities across Queensland, New South Wales, Victoria, and Tasmania.
He believes that planning ahead for downsizing can bring numerous benefits for those approaching retirement.
“Planning for downsizing can allow people to align their financial plans with their retirement goals and downsize their homes from what they might have needed for their family home to what they need now in their retirement years,” he says.
When it comes to downsizing or moving to retirement living, Randello suggests the following six steps to make a successful transition:
1. Assess your financial readiness
Evaluate your current financial situation to see how much you can afford to spend on your new home and lifestyle.
It’s crucial to consider your retirement finances, including the costs of moving to a retirement community versus your current housing expenses and any other financial commitments.
“It is best to source an independent, experienced, and accredited financial adviser who can offer personalised guidance to help retirees navigate their financial future and their retirement plans,"
“An independent legal adviser who is experienced in retirement planning and retirement villages is also a good person to have on your team,” Randello explains.
Aveo resident, Ian, says taking the time to consider how he would spend his retirement years in discussion with his family was crucial to his decision-making process:
“We had been talking for quite some time that the best thing for me would be a retirement village, and I agreed with my family,” he says.
2. Research and select the ideal community
Look for retirement communities that align with your lifestyle preferences and needs.
Consider factors such as location, amenities, community culture, and distance to family or friends.
“People choose retirement living communities for many different reasons. It could be to downsize, move closer to family or build social connections.
Or it could be to have access to supportive staff and shared amenities or the peace of mind of a managed community environment,” Randello says.
Retirees should consider their preferred environment or location, how they wish to spend their time, and the proximity of services, shops, and local amenities.
"Although the ongoing costs and service fees for retirement villages are clearly outlined and governed by Australian legislation, it's still important to compare the different operators," Randello explains.
3. Visit potential retirement communities
Arrange visits to a few different communities to get a feel for the environment, meet current residents, and talk to the community staff.
This will help you visualise your new lifestyle and ensure it meets your expectations.
“There is no one-size-fits-all in retirement villages.
"It’s crucial for retirees to feel empowered to design their own retirement experience and have the information needed to choose a community that fits their lifestyle and goals," Randello says.
To that end, Aveo has created a digital Retirement Living Guide offering retirees free access to comprehensive articles, videos, and downloadable resources.
It covers the most asked questions about downsizing and retirement living in Australia, and how to navigate the next steps when considering a move to a retirement village.
4. Plan the downsizing process
Determine what possessions to keep, sell, donate, or discard.
Focus on bringing items that are essential and hold sentimental value.
Seeking the help of a professional downsizing service can make this process smoother.
“We recognise that it can be really difficult to move from the family home after living there for many years,” Randello says.
In Aveo’s Retirement Living Guide, decluttering and downsizing experts share their top tips about downsizing and moving house.
Susie Dash is the director of Task Tamers, a professional organising and downsizing company that specialises in helping people downsize.
She recommends creating three piles for “treasures, transition, and trash”, and assigning coloured labels to each category to make sorting easier.
She also recommends using the “12-month test."
“If an item hasn’t been used in the past 12 months, chances are it may be best in the transition or trash pile.
“Of course, there are exceptions like treasured keepsakes that could be passed on to friends or family in the future,” she says.
5. Prepare for the move
Organise the logistics of your move, including hiring movers, packing your belongings, and setting up utilities at your new home.
Ensure you have all necessary documents and contacts handy for a seamless transition.
“Start with a plan, write a to-do list for all the things to be done before the move, and write a timeline.
It can be helpful to have a detailed floor plan of the new home to understand which pieces of furniture will fit or might need to be donated.
Start decluttering in an easy part of the house first and don’t be afraid to ask for help from friends, family, or neighbours,” Dash says.
6. Engage with your new community
Upon moving in, take time to participate in community activities and social events.
Building relationships with your new neighbours can foster a sense of belonging and improve your retirement experience.
A recent study by the Retirement Living Council titled “Better Housing for Better Health” found that residents in retirement communities are five times more socially active, twice as likely to catch up with family or friends.
They also have reduced levels of depression and loneliness.
“Coming along to community events is a great way to meet people who already live in an Aveo community,” Randello says.
“They can give first-hand advice about what the community is really like, plus they have also been in the same position and can help new residents, or those considering retirement living, feel welcome.”
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