Retirement is a major life change, and it affects everyone differently.  But most retirees soon discover they no longer need as much room as they used to in their younger days.  This often inspires them to downsize their life, including their home.  Moving to a smaller house can provide a number of benefits.  

The financial savings are undeniable.  Aside from the smaller mortgage payment, downsizing to a smaller house can save on property taxes and utilities.  Many retirees also find out their original home was worth more than they originally thought, allowing them to pay off their next mortgage far quicker.  And thanks to the capital gains laws, the money you earn from selling your home goes directly into your pocket.    

Another benefit of downsizing is it forces retirees to go through the possessions they've accumulated over the course of their busy lives.  Finally having a chance to evaluate their belongings, many retirees discover they're carrying a lot of needless stuff with them through life.  Once the unnecessary items are found, they can be given away to charity for a nice tax deduction or even sold on Ebay to generate a little extra revenue.  

Of course, another option when downsizing is to avoid buying another home altogether.  While some retirees prefer the simplicity of renting, others who enjoy traveling purchase trailers and hit the open road, calling wherever they are home.  It's a wonderful way to see the country.  Downsizing only adds to the well deserved freedom of retirement.