In looking at the financial picture, a common mistake is to focus only on monthly housing costs or to assume aging in place

Canadians spend significant time preparing financially for retirement. They save, invest and build plans designed to support their lifestyle without outliving their money.

Far less attention is given to another question that is just as important to retirement: Where will you live?

For most people, the default answer is that they will age in place. Housing is often seen as a binary decision between staying in the family home or moving to a long-term care centre. But retirement is rarely that simple. It can span several decades, and the home that suits someone at 65 may not be the right one at 75, or even 90.

A better approach is not to treat housing as a single decision, but as an evolving part of an overall retirement plan that reflects retirees’ changing needs as they age.

The early stage of retirement can be a time of freedom and exploration. Newly retired people may be healthy and active and finally have the time to travel, volunteer, or pursue hobbies that have been put on hold. Ensuring that your home is well located and properly maintained will make it easier to pursue the retirement lifestyle you want.

Changing family circumstances can also affect housing choices in retirement. Adult children may relocate, and grandchildren may arrive. Aging parents may require support. Some retirees choose to move closer to family, while others divide their time between communities, allowing for extended visits without giving up their independence.

At this stage, housing decisions are driven more by relationships than by career or commute times: proximity, flexibility and the ability to spend meaningful time with family matter more than square footage.

Simplicity can also become more important as priorities change. Even if retirees remain healthy, the large house they once loved may now feel like a job. Chores such as lawn care, snow removal and regular upkeep can become burdens rather than pleasures. This does not necessarily mean moving. Hiring help may free up time for the people and activities that matter more. But it does require an honest assessment of whether the property still provides more enjoyment than obligation.

Health inevitably becomes a consideration. Changes in mobility, accessibility or medical needs can make stairs, narrow doorways or a lack of nearby services increasingly difficult to manage. For couples, the home may also need to support one partner who requires additional care while the other remains independent, or eventually work for one person living there alone.

With outside support and home retrofitting, aging in place can work well. But in some cases moving to a condominium, retirement residence or other supportive housing may provide greater independence and peace of mind. Neither choice is inherently better, but it is important to make an intentional decision before a crisis limits the available options.

The key question to ask at every stage of retirement is: Will this home continue to support the life I want to live? And it’s important to have an answer before financial pressure or medical necessity forces a decision.

In looking at the financial picture, a common mistake is to focus only on the monthly housing payment, or to assume costs are minimal once the mortgage is paid off. Mortgage costs or retirement residence fees tell only part of the story. Property taxes, insurance, maintenance, renovations, transportation, accessibility modifications and home care all contribute to the true cost of remaining in a property. The value of a retiree’s time, including hours spent on maintenance, repairs or arranging services, also carries a cost, even if they don’t appear on a bank statement.

Good retirement planning should consider the financial costs of housing, as well as how housing needs may change, and also include the effect each option may have on independence, family relationships and quality of life. Although no plan can predict exactly how priorities will evolve, the goal should be to provide enough flexibility to adapt as life changes. Housing is one of the most important tools available for achieving that goal.

Legacy is also an important consideration in housing and retirement planning. Some retirees choose to free up home equity so they can give money to family members during their lifetime and see the benefits of that support firsthand. Since high housing costs have made it more difficult for younger generations to enter the market, some retirees may see downsizing or accessing home equity as a way to help their adult children. Such planning should balance the desire to share the value created through the family home with lifestyle choices and financial needs later in retirement.

Planning where to live in retirement is not the same for everyone, and the decision will rarely last forever. When considering housing needs at every stage of retirement, the goal should be to plan early enough that the decision remains a choice rather than something forced by a financial or health crisis.

Evan Riddell CFP, CIM, RRC, is a wealth adviser, investment adviser and associate portfolio manager with Richardson Wealth in Victoria.