Skip to Content
Ecology of Money

Does Downsizing in Retirement Still Make Sense?

Negative equity, transaction and upgrade costs, and emotions can make downsizing a poor choice for many retirees, says contributor John Wasik.

One of the most often-repeated backstops for retirement planning has been to downsize your living space. Sell your current home, purchase a less-expensive dwelling, and use the proceeds to bolster your nest egg.

But downsizing may not be a viable strategy for many retirees, especially with the U.S. residential real estate market still reeling from the aftershocks of the 2008 meltdown.