A Step-by-Step Guide to Downsizing As You Age

As we age, staying in our homes as long as possible, also known as aging in place, is a common desire. A national poll conducted in 2022 found that 88% of people aged 50–80 say they want to stay in their homes for as long as possible, often to maintain their sense of autonomy and independence. 

Downsizing — moving from your current home to a smaller one better suited to your needs and budget as you get older — can help maintain that sense of independence while giving you more control over your finances. 

However, downsizing definitely comes with its own set of challenges. The emotional attachment to a lifetime’s worth of your belongings, in addition to the challenges of moving, can make the entire process overwhelming If you or a loved one are considering downsizing, a thoughtful, step-by-step approach can make the transition smoother and less stressful for everyone involved. 

When Is It The Right Time To Downsize?

According to the National Council of Aging, here are some signs it may be time to downsize:

• Your monthly housing expenses are greater than 30% of your income.
• You don’t have much cash left at the end of each month.
• Your home no longer meets your needs. For example, entire rooms or floors of your home are unused.
• You have become the oldest resident in your neighborhood.
• You want to convert your home’s equity into income for an added boost to your retirement fund.
• You no longer have work or family ties to your current location.
• You wish to relocate closer to family members.
• You want a lifestyle change for this next phase of your life.

Step 1: Have an Open and Honest Conversation

Before diving into the logistics, it’s essential to have an open dialogue about the decision to downsize. Whether it’s due to health issues, financial reasons, or simply the desire for less maintenance, the conversation can be emotional. Here are some tips to approach it:

• Acknowledge you and your loved one’s feelings: Downsizing can feel like losing a piece of one’s identity, especially if you’ve lived in your home for many years. It can also be tough for your family who may have their own set of memories and attachment to your home. Make sure to create time to validate and process your feelings, as well as any emotions your friends and family may be experiencing.
• Highlight the benefits: Discuss the positives — such as less upkeep, lower expenses, and the possibility of being closer to family or living in a more suitable environment for aging. Keeping the long-term benefits in mind for all of you may soften the loss of moving out of your home. 
• Remember that this is to help you maintain your independence: Make sure you feel empowered to make choices that ensure you feel in control of the transition. Ultimately, downsizing will help you focus on what matters most — having control of your finances, living in a safe and easy-to-maintain environment, and creating new memories with the people you love most.
• Identify your goals: Knowing your goals and priorities before you start the process will help you choose the right home for you. Are you prioritizing your finances? Living close to your loved ones? Being in a community where you can make new friends and enjoy activities catered to you? Proximity to doctors, healthcare providers, and community resources?
• Determine what living arrangement works best for your lifestyle: If you know what you would like to do in retirement and what needs you may have in the future, you can start determining what works best for your situation. Would a retirement community with frequent activities and excursions suit your preferences? Should you rent a condominium or small apartment? Move in with loved ones? Will you want somewhere that provides medical services as you age?
• Avoid these common mistakes: Over or underestimating care needs, failing to consider geography, and putting too much emphasis on amenities and decor are all common mistakes.

Step 2: Start Early

Starting the downsizing process as early as possible will help reduce stress and give you the necessary time to make thoughtful decisions. The more time you give yourself to make decisions, the better you’ll feel about your choices! Rushing through the process can lead to added stress, and give you less time to be intentional about your choices. Instead, try carving out several months for the process and give yourself time to embrace the opportunity to reminisce and enjoy the process of downsizing for retirement. You probably have a lot of personal belongings you may no longer need, but still carry sentimental value. Stop and enjoy the process of reflection before selling, donating or getting rid of the items. Perhaps you even want to take photos to keep the memory without the item.

The earlier you begin, the more time you’ll have to adjust to the idea of letting go of possessions that may be taking up space or cluttering your home, to enjoy a more simplified and cost-effective lifestyle.

Step 3: Assess Your Current Living Situation

Before making any decisions about what to keep or discard, it’s important to take stock of your current home, possessions, and needs. Walk through the home and:

• Identify essential areas: Are there rooms that are no longer being used? Which parts of the home are critical for daily living (e.g., kitchen, bedroom, bathroom)?
• Make note of hazards: Look for items that may be creating clutter or hazards like loose rugs, overcrowded spaces, or unnecessary furniture that may pose a risk to safety.
• Catalog all your belongings: Create a list of all your possessions, including anything tucked away in the attic, basement, or storage units. This will enable you to gain a clear understanding of what you own so you can make informed decisions about what to keep and what to let go of. Identify duplicate items and choose the one in the best condition, and determine which items won’t be needed in your new home.

Step 4: Determine the New Living Space

Understanding your new living space is key to downsizing efficiently. Whether you’re moving to a smaller house, an apartment, or an assisted living facility, knowing the layout and storage capacity of the new space is crucial.

• Take measurements: Knowing the square footage and layout will help in determining what furniture and belongings can reasonably fit.
• Evaluate storage options: Determine what storage (closets, cabinets, etc.) is available in the new home. This will guide decisions on what to bring along.
• Ensure accessibility in your new home: Choosing a new home with an accessible floor plan and features will help you stay in your new home for years to come. some text
  • Pre-plan for potential wheelchair accessibility by looking for properties meeting the ADA standards for Accessible Design.
  • Look for homes featuring single-level living (like a first-floor full bath) and minimal steps.
  • Bathrooms should include non-skid surfaces in the tub and shower and easy-to-use faucets. ADA-compliant single-handle faucets with anti-scald features are recommended for older adults.
  • Put a light switch at the top and bottom of each set of steps.
  • Optimize your bedroom with an adjustable base and a bed designed for your specific ailments
  • Install a walk-in tub or shower, as well as grab handles (including near toilets)
• Prioritize fall prevention: Falls are the leading cause of fatal and nonfatal injuries among older adults. Keeping safety at the forefront of planning your new home is essential. 

If you’re struggling to decide the costs of downsizing, or what option may be best for you, this guide by Bankrate can help you calculate the costs, to help you make an informed decision. 

Step 5: Create a Sorting System

One of the biggest challenges of downsizing is deciding what to keep, donate, sell, or throw away. Developing a sorting system can help make this process more manageable. Here’s a simple system:

1. Keep: These are items that will definitely be used in the new space. Limit keepsakes to items that are practical or have deep sentimental value.
2. Donate: For items that are no longer needed but are still in good condition, donating can provide a sense of satisfaction, knowing that they’re going to someone who can use them.
3. Sell: Some items, especially antiques or valuable furniture, can be sold. This can be done through estate sales, consignment shops, or online marketplaces.
4. Discard: Items that are broken, worn out, or no longer functional should be thrown away or recycled.

This may be easier said than done, so here are some methods that can help you decide which of the four buckets to sort your items into: 

• Ask yes or no questions: Instead of vague, open-ended questions, use clear, binary queries like “have I worn these shoes in the last year, and will I wear them in the future?” to simplify decision making.
• 6-month method: Donate or resell items you haven’t used in the past six months. Chances are, if you haven’t used them recently, they may not be essential in your future life.
• Hanger Method: Turn hangers backward and set a time limit of around 6 months to a year. Clothes that remain backward haven’t been worn and can be confidently discarded, simplifying closet downsizing.

Step 6: Sort Through Belongings One Room at a Time

It’s easy to become overwhelmed by the amount of stuff you’ve accumulated over your lifetime. To keep things manageable, tackle the process room by room, starting with areas that aren’t used frequently, like basements or spare rooms (we identified these in step 3!).

• Set goals: Aim to complete one room before moving on to the next, and establish clear goals for each session (e.g., sort through the closet or decide on furniture).
• Take breaks: Downsizing can be physically and emotionally draining. Build in time for breaks, and allow space for reminiscing—acknowledging the sentimental value of belongings can help the person feel emotionally ready to let go.
• Enlist help: Whether it’s family members or professional organizers, having support can make the process more efficient and less stressful.

Step 7: Focus on the Most Used Items

Prioritize items that are used regularly as you sort through your items. Daily essentials like clothing, cookware, and personal care items should be kept within easy reach. This helps avoid overpacking and ensures that the new living space remains clutter-free.

• Clothing: Keep comfortable and frequently worn items, and consider donating outfits that are rarely used.
• Furniture: Choose functional pieces that are easy to use and appropriate for the new space. Avoid keeping large, bulky furniture if it won’t fit or be practical.
• Kitchen items: Focus on the essentials—keep only the dishes, cookware, and utensils used regularly.

Step 8: Preserve Memories in Creative Ways

Sentimental items, such as photos, letters, and heirlooms, can be the hardest to part with. Here are a few ideas to preserve memories without holding onto every physical item:

• Digitize photographs and documents: Scanning photos and important papers can help preserve memories without taking up physical space.
• Create memory boxes: Instead of keeping a large number of sentimental items, choose a few that hold the most meaning and store them in a special memory box.
• Give away gifts early: If there are items that hold special meaning but aren’t needed in the new space, such as gifts you’ve been holding onto for a special occasion or family heirlooms, consider passing them on to family members now.

Step 9: Plan the Move

Once sorting is complete, planning the move itself is the next big step. Here’s how to ensure a smooth transition:

• Hire professional movers: For elderly individuals, hiring movers experienced with downsizing and senior moves can reduce stress.
• Label boxes clearly: Label each box with its contents and the room it belongs in to make unpacking easier.
• Arrange the new space: Before the move, plan where furniture and belongings will go in the new space. This ensures that everything has a designated place and prevents unnecessary clutter.

After the move, adjusting to the new space can take time. Remember to focus on the positives — less upkeep, fewer responsibilities, and a more manageable lifestyle —and allow time to settle in and acknowledge any mixed emotions that may come with this significant life change. And while you’re at it, explore some kitchen gadgets under $20 or electronics to add to your home to make your life in your new home even more comfortable!