Last year, the first of Canada’s nine million baby boomers became eligible for retirement. Over the next several years, many will find themselves deciding whether to stay in their homes, transition to a smaller place of residence or relocate to another city or country.

According to a report from the BMO Retirement Institute, the top factors that boomers stated as reasons to relocate upon retirement included: weather (57%), financial reasons (54%), proximity to family and friends (45%) and better access to healthcare/support services (35%).

Although downsizing may seem like a straightforward move, there are several factors to consider before making the decision. This presents another opportunity for advisors to assist their clients.

“Even if downsizing may be years away, it’s important not only to think about all of the factors that can affect your decision, but to maintain an open dialogue with your loved ones,” says Dr. Amy D’Aprix, BMO Life Transition Expert. “Being proactive will help you remain in control, rather than having to deal with an unexpected move when you’re not prepared.”

There are several factors to consider when making the decision to downsize or not, including health, location and financial considerations.

Although health matters may be hard to predict, it is important to get clients to think about what they might need to do if their health status changes in the upcoming years. A good place to start is to ask the question, “If there were a shift in your healthy or mobility…”

A change in location can greatly impact day-to-day activities and social interactions, and will often determine the lifestyle lead by your clients. Some retirees would prefer to live in a group setting, while others would like to live in a more urban area with easier transport.

Ask your clients to consider the following if they are thinking of moving:

  • will you still be close to family and friends and have adequate social support?
  • do you want to be responsible for the upkeep and maintenance of your property?
  • if you become ill or start having mobility issues, will you be isolated in your current or new location, and will you be too far away to receive timely assistance?
  • where are your main service providers located, an will a change in location provide any inconvenience?

Laura Parsons, mortgage expert, BMO Bank of Montreal, notes that, for those considering downsizing, many financial factors need to be considered, including costs related to property maintenance and the possibility of renovations to adapt to changes in lifestyle.

“Many boomers heading into their retirement years may be looking for the lock-and-leave lifestyle. But with convenience comes significant cost considerations, including maintenance, general upkeep and repairs: important factors for preparing yourself financially.”

Parsons adds that some may also be weighing their options for adapting or renovating their current home to support them in their retirement years; she suggests that boomers speak to a financial expert about the programs and options available early in the process.