Episode 223: The Truth About Downsizing in Retirement

Apr 7, 2026

They dig into surprising data on whether older adults actually move or downsize, showing many stay put or even upsize. Practical housing factors are highlighted: mobility, social ties, walkability, and access to healthcare and transport. Listeners hear about home modifications and technology that support aging in place. The financial tradeoffs of carrying a mortgage into retirement are also explored.

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INSIGHT

Most Retirees Stay Put Instead Of Downsizing

Most retirees do not move and moving rates decline with age until late-life care needs rise.
Merrill Lynch/Age Wave found only half of movers downsize while 30% move to larger homes for visiting family.

INSIGHT

Three Practical Questions To Evaluate A Place To Live

Anticipate aging changes by asking who will change light bulbs, how you'll get an ice cream cone, and whom you'll have lunch with.
These questions focus attention on maintenance help, mobility options, and nearby social connections.

ADVICE

Verify Long Term Affordability Before Moving

Check long-term affordability by researching property tax rules, HOA fees, and costs to outsource yard work or snow removal.
Confirm whether local policies (e.g., tax freezes at 65) or rising assessments could make the home unaffordable later.

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In this episode of Retire with Style, Wade and Alex continue the breakdown of the Retirement Planning Guidebook Third Edition. Focusing on one of the most overlooked but impactful retirement decisions: housing. Wade and Alex challenge the common assumption that retirees will downsize or relocate, showing that most people actually stay put and often even move into larger homes. The conversation then shifts to how to evaluate where you live through the lens of aging, covering practical considerations like mobility, social connections, healthcare access, and home design. They also introduce the financial implications of housing decisions, including whether carrying a mortgage into retirement adds unnecessary risk. Listen now to learn more!

Takeaways

Most retirees don’t move, and mobility declines with age
Downsizing is less common than expected and often doesn’t happen
Housing decisions should prioritize mobility, social connection, and support
Walkability and access to amenities become more important over time
Proximity to healthcare and transportation is critical
Aging in place requires home modifications and planning ahead
Technology can help extend independence and safety at home
Carrying a mortgage into retirement can increase financial risk
Paying off a mortgage is often about peace of mind vs. optimization

Chapters

00:00 Introduction and Retirement Income Challenge Overview
03:00 Wade's Retirement Planning Guidebook Insights
05:59 Housing Decisions in Retirement
08:53 Characteristics of a Good Place to Live
11:57 Considerations for Aging in Place
14:45 Long-Term Housing Affordability and Community
18:04 Health Care and Transportation Options
21:02 Technology and Home Adaptations
23:45 Carrying a Mortgage into Retirement

Links

📘 New Release: The Retirement Planning Guidebook (3rd Edition)
Wade Pfau’s must-read Retirement Planning Guidebook just got even better. The 3rd Edition is now available and packed with the latest updates to help you design your retirement strategy with confidence. Grab your copy on Amazon or your favorite book retailer: https://books2read.com/Retirement

This episode is sponsored by McLean Asset Management. Visit https://www.mcleanam.com/retirement-income-planning-llm/ to download McLean’s free eBook, “Retirement Income Planning”