Many couples that are getting ready to retire should consider downsizing their current home. If you are living on a fixed income, then you might want to avoid the expenses that pop up with maintaining a large house, such as fixing a plumbing problem or repairing a leaky roof. It's better to change your lifestyle so that you don't have to worry about covering unseen expenses and have to scrimp on food, entertainment, clothing, or travel.
Here are two popular alternatives to maintaining a large home in your retirement years. You should speak with a financial planner about the tax implications of each choice when doing your retirement planning, as well as how much of a savings each would work out to when compared to your current monthly expenses.
Many retirees are opting to move to a foreign country and purchase a unit in a retirement village geared towards Canadian and American ex-pats. These retirement villages have condo like apartments which you purchase. They are usually gated, with round the clock security on hand. There are also amenities, such as restaurants and grocery stores, inside the village, or right outside in a neighboring town. The design of these villages is very similar to all inclusive resorts you might visit in the Caribbean.
A popular location for these retirement communities is Costa Rica. While it would help to know Spanish, many of the people in Costa Rica, especially those who work around the areas populated with ex-pat retirees, have a firm grasp of English.
While Costa Rica is a popular choice, and voted one of the best options by AARP, there are other designations. Some people choose Buenos Aries or Belize. If you do consider moving abroad, it is important to discuss how this will affect your residency in Canada, as well as the tax implications. A financial planner who specializes in retirement planning is essential. You should speak with one before you start searching for retirement villas.
Over 55 Communities
If you prefer to stay in Canada, then you should consider a over 55 community. These are developments that are designed for people who want a quiet community and also want to avoid some of the hard work associated with home ownership. You can either purchase attached, townhome style units, or individual houses.
You should choose a over 55 community that provides maintenance for the home and grounds. Some communities are more comprehensive than others. You should choose one that will take care of the roof and exterior of the unit, as well as handle interior issues such as electrical issues and plumbing. This can range from fixing a clogged drain to changing a ceiling light in a cathedral ceiling.