A Vanguard investment firm report suggests that selling homes and moving to more affordable regions could significantly enhance the retirement savings of many Americans aged 60 and over, amidst soaring housing prices.
A recent report from Vanguard investment firm reveals that selling a home and moving to a more affordable housing market could significantly enhance the retirement savings of about a quarter of Americans aged 60 and over. This strategy is particularly viable given the current peak in housing prices, as noted by certified financial planner Matthew Gottshall. In 2019, homeowners in high-priced markets averaged $346,000 in equity upon sale, illustrating the potential financial benefits.
The suggestion to downsize comes amid rising home values, offering retirees a chance to capitalize on their home equity. Downsizing could also lead to reduced maintenance costs and better suitability for aging in place, contributing to improved quality of life in retirement. However, the decision to move and sell should be considered carefully, taking into account the various costs associated with selling a home, such as real estate agent fees and property taxes, as well as the benefits of staying connected to a supportive community and family network.
Before proceeding with such a significant decision, individuals are advised to conduct thorough research and analysis to understand the financial implications fully and to consider how changes in living arrangements might affect their personal and financial well-being in retirement.
