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This WSJ article discusses the financial and non-financial benefits of downsizing a single-family home.
When Should Retirees Downsize Homes? - WSJ.com
Figure Out How Moving Changes Your Finances | SquaredAway
When Should Retirees Downsize Homes? - WSJ.com
The story includes a link to a Boston College web site with a calculator that appears to do a good job of using a dozen user-provided numbers to calculate the financial benefits of a move to a smaller house or a rental.Downsizing can have a big impact on a retiree's financial plan. Even with a mortgage that has been paid off, housing often accounts for 30% of retirement expenses, says Mr. Sass at Boston College.
Mr. Sass does the math for a move from a house worth $250,000 to one costing $150,000. Factoring out the expenses of moving—roughly 10% of the selling price—that leaves $75,000 from the purchase of the new residence that can be added to a retiree's savings.
That $75,000, he figures, could enable a retiree to withdraw an extra $3,250 from savings every year. On top of that, the retiree would have savings from lower expenses on the house, which he says could easily be an additional $3,000 a year. "That's $6,250 a year in extra income," Mr. Sass says...
Mr. Schwartz says people often fail to appreciate how the aging process makes it harder to move. As just about anyone who has moved knows, the process is physically and mentally exhausting, even at a young age. It's that much more daunting for older adults.
Figure Out How Moving Changes Your Finances | SquaredAway