From A Woman's Perspective: November 16th, 2024 "Planning for the Go-go, Slow-go, and No-go Stages of Retirement"

Planning for the Go-go, Slow-go, and No-go Stages of Retirement

Good morning, Marilyn. According to a study a few years ago, Canadian seniors struggle with two common worries: fear of losing autonomy, and fear of out-living their retirement funds. 

Fear of losing autonomy is a vague kind of worry that somebody or something will take away your ability to choose for yourself. 

Fear of out-living their retirement funds, however, is a very tangible kind of concern. You know you have X amount of money in the bank, and since your earning years are likely behind you, there’s only going to be withdrawals with very few deposits. 

While I am no financial planner, my professional experience as a Realtor™ has shown me that in general the older you are, the less of your net worth you should have tied up in real estate. Why? Because these funds are not easily accessible and you might need them to fund increasing health care needs, or to enhance your income from pensions or other investments.  

The equity tied up in your bricks and mortar has been a great investment exactly because it’s illiquid. But your sterling years are also exactly the time when you need those funds the most.

So is this the right time to downsize? There is not one right answer. Downsizing your home is only one part of a comprehensive plan for your future. The speed at which you downsize kind of depends on how much longer you plan to live. Of course I am being tongue-in-cheek here, but assessing whether you are in the Go-go, Slow-go or No-go stages of retirement is a key element to making sure your funds last as long as you do. Let me explain:

In the Go-go phase of early retirement, all the pent-up dreams to travel and do home projects and play golf that were fantasized about during your work years means that there can be quite an uptick in expenses right after retirement.

However, in the second decade of retirement, you might find yourself slipping into the “Slow-go” phase, when the idea of a transatlantic flight or building a bunkie yourself no longer holds as much appeal. You do less, so you spend less, and expenses tend to plateau in this phase. 

Finally, there is the “No-go” third decade of retirement which can actually see expenses go up again. Increasing medical care and home service providers can really add up, and this late stage of retirement is unfortunately also when many seniors are forced by circumstances rather than by choice to move from their large, empty and unmanageable homes. 

Circling back to my original point about the #1 fear of seniors being them losing autonomy, by delaying downsizing, the window of opportunity to make their own decisions gradually closes. If they haven’t been able to keep up with maintenance and cosmetic improvements to the property over the years, their valuable asset might have started to decline in value. 

There is a right time to downsize, but I’m not the one to tell you when that is. Your right and responsibility as a grown up is to face your future with clarity, knowledge and intention. My role as your downsizing Realtor™ is to provide you with the information, resources and expertise to empower you in your decision making.

Towards that end, I would like to remind you of our ongoing commitment to provide workshops, workbooks and discovery calls for no cost or obligation. 

On Wed. November the 20th, you are invited to attend “Get Ready to Downsize” in Aurora, Ontario. This free “brunch and learn” is designed to help seniors catch a vision of how downsizing can enhance their lifestyle, wellness, and financial goals. We’ll cover property options beyond just condos, too! You can register for this at our website, smartrealtysolution.com.

While you’re at our website, why not check out our other downloadable guidebooks on topics related to all aspects of downsizing. That address again is smartrealtysolution.com.

And if you’re looking for more of a one-on-one consultation, why not book a discovery call with me, Sharon, at 416-460-5636. We can set up a time when I can answer any questions you have about the process of downsizing and making your next SMART move.

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