Becoming an “empty nester” will bring change, opportunities for an improved relationship with your spouse, and an increase in expendable income as many “routine” expenses will dramatically decrease, and even disappear. For those that may have not been looking at this part of their lives in a favourable light; here are a few things to consider.
Nearly Two-Thirds of Empty Nesters Feel Closer to Their Spouse After the Children Move Out
A survey done by 55places.com reveals that 63 percent of empty nesters become closer to their spouses after their kids move out. More than 80 percent said they felt they had more freedom and 62 percent felt less financial pressure.
Less financial obligations unlock many options to improve your life.
With the children gone, expenses like grocery, car insurance, cell phone, credit card bills, fees associated with education, utilities, and other general miscellaneous expenses will drop. You may also find yourself with a small or no mortgage at all. This unlocks many options for you and your spouse. You could consider increasing automatic contributions to a retirement plan, building up emergency savings, reducing or consolidating all forms of debt(particularly expensive credit card and instalment debt) via a home equity line of credit, and saving money on interest to help increase contribution to a retirement plan. You will have more time and money for other activities such as vacations, cruises or simply doing more of the things you love to do.
Should you consider selling to downsize or renovating your home?
There is no single right answer to this question, it can vary. The good news is you have options! If you love your home and all the memories that reside in the home, you might want to consider a renovation to update the space and also convert parts of the home to areas you can enjoy as a couple. Or make improvements that could focus on mobility and making your home easier to navigate, or add a few touches that can bring extra health benefits, from adding a home gym or opening up your space to more natural sunlight and fresh air. For more on this check out our article on “Doing MORE when considering home improvements”
If you choose to sell your home and downsize this will generally give you more financial stability and security and less maintenance than managing a larger home. This frees up resources to travel, dive deeper into your hobbies, volunteer, and explore areas of interest you never had the time to do.
We hope this article gave you something to think about if you are an empty nester or might be one in the near future. If feel like you need some guidance in the financial aspects of this article, reach out to our Solution Centre. We are here to help you in any way we can.
Let’s go somewhere…together!