Downsizing for Retirement: A Complete Guide for Empty Nesters

So, the time has come. The nest is officially empty, the garage is a museum of forgotten hobbies, and maintaining a four-bedroom house for two people is starting to feel like driving a bus for your weekly grocery run. Ridiculous and exhausting. That can mean only one thing - it’s time to think about downsizing.

Maybe this is the moment you've been dreaming about for years, or maybe the last two decades flew by and caught you completely off guard (we're betting it's a little bit of both). Either way, downsizing is a great way to save money during retirement and gives you a fresh start for your new chapter of freedom.

Still, we know that moving house is enough to make anyone want to lie down and forget about it, let alone when you have 20 years' worth of memorabilia to work through. That’s why this article will walk you through the whole process, from committing to moving to actually getting the keys to your new, gloriously low-maintenance life.

Step 1: Committing to Your Decision

Let's start with the toughest part - actually making the decision to leave. With decades of memories tied up in a home, the thought of leaving can sometimes feel like you're somehow going to lose all that. But here's the thing, those precious memories don’t just exist within the four walls and dodgy electrics of your home - they will stay with you wherever you go. 

Of course, it’s going to be hard and a little scary. But if freeing up on maintenance costs, council rates, and electricity bills is going to give you the ability to make new incredible memories, then isn’t it worth it?

After years of putting others first, now is the time to do something for yourself. Home will always be wherever you are.

Step 2: Take a look over the numbers

One of the biggest draws to downsizing for many Aussie empty nesters is the chance to boost retirement funds. Downsizing can save you serious amounts of money, and not just because of those pesky electrics that have needed fixing for 10 years.

Transitioning to a smaller home means smaller bills and smaller headaches. You could be waving goodbye to hefty mortgage payments, sky-high utilities, and endless maintenance (that somehow never gets finished, despite asking a million times).

And here’s the cherry on top of the cake: if you sell your larger home and buy something cozier, you might even pocket some extra cash. That money could be used to top up your super, move closer to family, or finally fund that dreamy European river cruise you’ve been speaking about for years.

Of course, it’s not all prosecco and postcards. Don’t forget the less glamorous costs like stamp duty, moving fees, and the possible add-on of capital gains tax. Before jumping straight ahead to booking that river cruise, have a chat with a qualified financial adviser. They’ll help you see how downsizing can fit into your retirement game plan.

Step 3: Rightsizing, Not Downsizing

As Moniue Lee, Sales Manager at Yamba Cove Palm Lake Resort says, you're not just downsizing, “you’re rightsizing” (AS). This is the opportunity to design the retirement lifestyle you actually want. Maybe you just want a smaller house in the same area, or a sea or tree change you've always dreamed about, or a retirement village with built-in community. Whatever it is that you’ve been dreaming of  for all those years - during the school run and grocery shopping - now is the time to live out those dreams.  ​

Plus, it’s important to consider the logistics. Do you want to be walking distance to shops and social activities? Is one level better than a multi-story home (your knees will have opinions in 10 years), and how close do you want to be to family versus having your own space? Maybe close enough to drop in from time to time, but not close enough to be their free daycare? 

Step 4: The Great Purge

Time to tackle the stuff. This is where most people get stuck, staring at boxes thinking "I'll deal with that later" until they end up panic-moving an array of late-night telly shopping finds, none of which have seen the light of day for over a decade. 

Starting early with the easy wins is a gentle way of breaking into the clearout phase without becoming overwhelmed. Begin with items you know you’ll definitely throw - like clothes you haven't worn in years, duplicate kitchen items, books you'll never read again, and that exercise equipment that's become a clothes rack.

Then tackle the emotional stuff. Kids' schoolwork? Keep a handful of special pieces and photograph the rest. Antique furniture that’s been passed down through generations? Save space in your new home and place it in safe storage; it will almost definitely come back in style again. 

Pro tip: Try the four-box method: keep (things you use or genuinely love), donate/sell (good condition items you don't need), store (items that hold attachment but no longer have space in your home), and bin (broken or useless stuff).

Step 5: Measure Everything

You know what's worse than getting rid of stuff? Realising your beloved couch won't fit through the door of your new apartment. Before a single box is moved, get the floor plan of your new place and measure doorways, hallways, and furniture. A little bit of pre-planning now can save you a whole lot of surface scratching and swearing later down the line.

Step 6: Hire Professionals & Sit Back and Relax

Look, you’ve paid your dues and done your fair share of moving boxes. Now is the time to take a step back and allow the professionals to do the heavy lifting… quite literally. 

Using experienced removalists gives you the peace of mind that all of your precious items will be handled with the utmost care and professionalism. Plus, with additional services like packing and storage, your removalists can really take care of it all, giving you the start that you deserve in your new home, one without stress. 

Step 7: Settling Into Your New Life

Give yourself time to settle in. Feeling a bit off for the first few weeks (or months) is totally normal; you’ve just traded decades of routine for a whole new chapter. That’s a big deal, even if it’s a good one! 

So, start by making your new space feel like you; hang your favourite art, unpack the good mugs, and make your favourite meal. Don’t be scared to reach out to the local community either; the sooner you get to know your new neighbourhood and form connections, the sooner it will start to feel like home. 

Most importantly, now’s the time to enjoy it all: you’ve got fewer rooms to clean, lower bills, more travel freedom, and extra energy for the stuff you actually want to do. The world is your oyster. 

Moving Forward 

Downsizing isn't about losing the life you had; it's about gaining freedom for a new chapter. Yes, it's emotional. Yes, it takes planning. But with a little bit of help from the professionals, you can create a home that suits your life now, with extra money in your pocket, and the freedom to enjoy retirement without being tied down by property maintenance. 

Start your downsizing journey and experience a life of endless possibilities (and a lot less cleaning).