As you look to retire, the question of downsizing your home or not will inevitably come up. Chances are that as you get older, you’ll start to notice how much of your house you use and how much just collects dust most of the time. However, it is your home. There are pros and cons for each option and it is an important decision. With that in mind, you should weigh those pros and cons in order to make an informed decision.

According to a survey, 42% of Americans plan to downsize in retirement. Interestingly though, in another survey visualized by AAG, a significant portion of Americans are saving for retirement because they are paying off their mortgage. Everyone can agree that housing is expensive and thus, the question of downsizing in retirement comes up. Let’s examine some of the pros and cons.

The Pros:

You’ll save money

The amount someone has saved for retirement varies from person to person and state to state (image credit to AAG). While social security does provide some income and many people have investments that do as well, the amount of money you’ve saved and will receive is often finite. With that in mind, a way to save money or stretch money in retirement is to have a smaller house. You could have a lower mortgage, lower insurance, lower monthly bills, and more.

Less physical responsibility

Unfortunately one of the inevitabilities with old age is that we tire easy or maybe our bodies just don’t work as well as we’d like them too. That can make keeping up with the physical responsibilities of a house harder to achieve. Things like cleaning, landscaping, and regular maintenance all must be done but can be more difficult as you age. Or, maybe you just don’t want to have to do that anymore and would rather enjoy more time doing what you’d like! Either way, downsizing can alleviate some of this responsibility.

Something new

Sometimes you just want a new start or you want to experience something different. Maybe you’ve lived in your house for too long or maybe you want to change where you live. A new house lets you experience those new things.

The Cons:

Change is hard

The flipside of trying something new is that change can be difficult. Some people like routine and some people like having the comforts of their home. If you have lived in the same house for many years, it can feel like a part of you or a significant part of your life. Downsizing means moving. It means getting rid of possessions. It means giving up a place that you’ve loved.

Costs with selling your home

Selling a home can come with expenses. Sometimes that means having to fix it up before you put it on the market. And then there are moving fees, real estate agent fees, and closing costs. All of that can add up and eat into potential profit. Additionally, the house or condo you move into could come with condo or HOA fees which are often hefty.

Less room for the in-laws

Some may see this as a positive, but most grandparents like it when their kids and grandkids come to visit. If you move to a smaller house, naturally you’re going to have less space for people to stay. Sure, there is always the option of blowing up an air mattress and squeezing everyone in, but that can get crowded, especially if it’s for a prolonged stay.

So, is downsizing right for you? There are many more factors to weigh than just the six above and every person’s situation is different and unique. However, there are always some baseline considerations to take into account as you move closer and closer to retirement. Downsizing is one of those questions and it is best to be as prepared as possible to answer it.