Even if you did well in your years of working, you will need to downsize your lifestyle and do some financial planning if you did not put away sufficient savings. This means that you will need to adjust the way you live in a way that it costs less. Downsizing can boost retirement savings so you can live in better quality.
You can move into a smaller apartment or home, forego extras such as a gym membership, an iPhone or cable TV. You can try living without a car if you live in a city with public transportation, or you can trade for a less expensive vehicle. You could even move in with your grown-up kids to make ends meet. If you sell your house and make a nice profit, you could have more retirement savings for years.
If you retire without enough savings, you can sell the home you own to get an influx of cash. You also get a tax break when you sell real estate. If you lived in your house for at least two out of the five years from the sale date, you could exclude up to $250,000 on capital gains from the house sale if you are single. Married sellers who file together could exclude up to $500,000.
Selling real estate in a healthy market could give you a much-needed cash influx. If you have low equity in the house, you might lower your monthly costs by renting it out. Moving could lower your property taxes and maybe put you close to a senior center with great amenities.
Additionally, you will not have to keep spending to maintain your home if you eliminate maintenance costs by selling. An older house will require more maintenance. Stairs could even be a challenge for your mobility.