One downside of upsizing is that seniors are looking at longer lives.
“You need income in retirement to last your entire life,” says James Nichols, head of retirement income and advice strategy with Voya Financial. "Sometimes, it is tempting for retirees to feel overly confident when looking at their savings in one lump sum because they have a large amount of money.”
For pre-retirees who are still working, Merrill Lynch financial advisor Mark Thorndyke advises upsizing sooner rather than later.
“In today’s world, it can often be easier to get financing while you still have the income to support a mortgage if there is a need for one,” he says.
Of those retirees who have not and do not plan to move during retirement, 54% said it’s because of their deep emotional connection with their home, 48% cited a close proximity to family, 28% said they couldn’t afford to move and 44% noted remaining independent as their motivation to stay put.
“How and where our nation’s aging population chooses to live will have widespread implications on the way homes are designed, the resources people will need, and how communities and businesses nationwide should prepare,” says Andy Sieg, head of global wealth and retirement solutions with Bank of America/Merrill Lynch.