Are You Looking To Enhance Your Retirement Pot? Consider Downsizing 

Are You Looking To Enhance Your Retirement Pot? Consider Downsizing 

More and more people are considering downsizing as an option for releasing much-needed capital or living the lifestyle they desire. Another benefit of downsizing is that it enables you to free up money to put towards your retirement pot.

If you feel that downsizing might be a viable option for your situation, you are not alone. Downsizing is becoming increasingly popular for people who want a change from a “big is best” lifestyle. 

Generally, downsizing relates to living in a smaller property. Of course, moving into a smaller home also presents you with the opportunity to shed many other unnecessary possessions from your life.

Therefore, here are a few of the benefits of downsizing:

The Benefits of Downsizing

  1. Increased Focus

The great thing about downsizing is that you can benefit while you’re going through the process, not just when you complete it. The first part of the downsizing process is to assess your lifestyle, which can help you in so many ways. 

It is all too easy to drift through life, never taking the time to question what you’re focusing your efforts on. Downsizing compels you into deciding what is important; what to keep. It also helps you give more thought to your retirement and what you’ll need for that period of your life. 

  1. Financial Rewards

Of course, an obvious benefit of downsizing your home or vehicle is that reduced costs and expenses will likely accompany it. Lower running costs will free up additional cash each month. You can use this to treat yourself, pay off debts, or enhance your retirement pot.

  1. Improve Your Environment 

Much of our lives are dominated by milestones such as graduations, marriages, births, holidays, and so on. These significant events are often approached with a bigger-the-better attitude. 

However, as we age, these milestones become less frequent, and we start to live a more health-led lifestyle. At this stage, many people realise that they can enjoy life with much less. 

With children having moved on, your attention might turn to your health and retirement. You may feel that your environment and lifestyle need to become more comfortable, stimulating, or accessible. Downsizing can help you create the environment you desire. 

Things To Consider

Even though downsizing will offer you significant benefits, there are several things you need to consider:

  • Stress of Moving. Moving home can be an incredibly stressful experience. Before downsizing, plan for this increased stress, and consider how you will manage it. 
  • Your Ego. After a lifetime of building things up, downsizing will reverse what you’ve been used to. You should consider how your ego and self-esteem will cope with the changes. 
  • Sentimental Issues. You may have lived in your home for much of your life, creating significant memories. How will you feel about leaving the place that was the location for so many emotional times?
  • Social Ties. Downsizing isn’t just about leaving behind your physical home, but the friends and neighbours you’ve made while living there. Consider how you’ll feel about potentially losing these social ties?
  • Shedding Possessions. With less space, you might have to offload some of your possessions. This is great for the stuff you don’t really need, but what about some of your more prized possessions?

Using Money From Downsizing To Boost Your Retirement Fund

You might have a considerable amount of cash available following your downsizing. However, exercising some prudence might be your best course of action. 

If you are considering using this money to boost your retirement funds, you are certainly putting it to good use. However, you should consider using a regulated financial adviser to ensure you choose the best options. 

A financial adviser will look into your situation and present you with a range of options that suit you. Even if downsizing is something you choose not to do, you should still consider using a regulated financial adviser. They can help you regularly check your pension’s performance, provide advice on accessing your funds through pension freedoms, or assess if it’s best to leave your pension pot invested.

If you are considering your pension, speak to a regulated financial adviser like Portafina or, view the info at the Money Advice Service