The path to successful retirement planning for 2026 challenges what most people believe. It’s not about gathering more possessions but about smart simplification.
Expat Wealth At Work, which has spent over 65,000 hours advising expats, international families, and HNWIs over the past two decades, noticed something remarkable: retirees who simplify their lives end up happier than those who keep accumulating.
Your financial freedom might suffer from assets you’re holding onto right now. A family home can shift from a smart investment to a costly burden after your children move out. Some families made more than €2 million by downsizing their primary residences. Expensive hobbies can drain your resources without you realising it. One retiree’s classic car collection ate up €50,000 yearly in maintenance expenses, yet the cars barely left the garage.
Expat Wealth At Work outlines five key items you should think about selling as you get ready for retirement in 2026. These items represent more than just physical possessions—they could be anchors that hold back your retirement dreams. Taking action on these areas today will help you build a more confident and rewarding retirement tomorrow.
Sell the Family Home
The biggest asset most people own turns into their greatest liability in retirement. Your family home—once a safe haven for raising children and building memories—can become a financial and physical drain as retirement approaches. Let’s learn why selling your family home might be one of the smartest decisions you make for your retirement in 2026.
Why large homes become a burden in retirement
Your beloved spacious family home silently depletes your retirement resources in ways you may not be aware of. The financial effect hits hard: bigger homes always lead to higher utility bills, property taxes, and insurance premiums that might not fit your retirement lifestyle and income. Homeowners spend about €5,725.26 each year just on maintenance and repairs. Older and larger homes often cost even more.
Taking care of a home becomes harder as you age. Simple tasks like cleaning multiple rooms, walking up stairs to reach second-floor bedrooms, or managing large gardens can turn into real challenges. Empty rooms create an emotional weight too, as unused bedrooms remind you of a different time in life.
The housing market now favours energy efficiency and practical spaces. Traditional energy-hungry homes with too many bedrooms don’t appeal to buyers when you decide to sell. This trend makes oversized properties less valuable investments for the future.
Money gets tighter when you realise that households spend more than 33% of their budgets on housing. This can really affect your retirement quality, especially if you live on a fixed income where every euro counts.
How downsizing can unlock capital and reduce stress
Downsizing is more than just moving to a smaller place—it’s a wise financial decision that can transform your retirement experience. Selling a large home and buying a smaller one helps you cut or eliminate major expenses:
- Lower or eliminated mortgage payments if your home sale pays for your new place
- Reduced utility costs, saving the average €6,572.60 yearly that households spend on utilities
- Decreased property tax burden by buying a home with lower assessed value
- Minimized insurance premiums for a smaller property
- Reduced maintenance expenses with fewer things needing repair and replacement
The money freed up through downsizing gives you lots of financial options. Selling could put hundreds of thousands of euros into your retirement fund. Retirees can add up to €286,263.04 individually (or €572,526.07 for couples) from downsizing proceeds to boost their retirement savings.
A smaller home needs less energy, fewer resources, and costs less to maintain. You might even handle some maintenance tasks yourself that needed professional help in a bigger house.
Life gets simpler too. A smaller home means less time cleaning and maintaining and more time enjoying retirement. Many retirement communities include services like landscaping, fitness access, and even dining in one monthly fee—making life easier than traditional homeownership.
You could rent out space, convert to dual occupancy, or look into equity release options if you’re not ready to sell. These options still leave you with maintenance duties and possibly complex tenant relationships when life should be getting simpler.
Real-life example: From villa to apartment
John and Mary’s story shows how downsizing works in real life. After 35 years in their family home, they moved to a small apartment. This smart move cut their living costs right away and freed up €190,842.02 in equity. They now enjoy retirement with new friends and amenities, without worrying about home repairs and maintenance expenses.
Mary’s story (a different retiree) also teaches us something valuable. At 67, she sold her family home for €763,368.09. She bought a small apartment for €477,105.06 and invested the remaining €286,263.04. Her pension payments dropped slightly due to more assets, but her overall financial situation improved a lot, giving her more security throughout retirement.
Timing matters with this kind of move. Many people put it off, saying, “I’ll do it in a few years.” This process often becomes an endless cycle until they’re too settled or physically unable to move. If downsizing fits your retirement plans, do it while you can still handle the change.
You need to understand capital gains tax liabilities before selling. Sellers can exclude the first €238,552.53 in profit (€477,105.06 for married couples filing jointly) if they’ve owned and lived in the house for at least two of the past five years. Keep all records of home improvements—they can increase your cost basis and might lower your tax burden.
Moving costs need to be part of your calculations. House moves can cost thousands of euros depending on location, property value, and available options. Factor these expenses into your financial planning to avoid surprises that reduce your downsizing benefits.
Your emotional connection to a family home makes sense, but don’t let it override smart financial planning for your retirement in 2026. The memories stay with you, while the physical and financial burdens stay with the property.
Stop Financially Supporting Adult Children
Parents today face a surprising reality – about 75% of them help their adult children financially. This creates a money situation that looks very different from what they planned for this life stage. Your path to retirement in 2026 might have an invisible obstacle: the ongoing support you give your kids.
The hidden cost of ongoing support
Financial assistance to adult children extends far beyond the reach and influence of occasional gifts or emergency help. The support incurs significant hidden costs that erode your retirement security. 42% of parents feel financial stress, and 35% confront emotional pressure tied directly to helping their adult children. These issues are not just temporary; they threaten your well-being during your most financially stable years.
Some parents chose to leave work early because they needed to support their kids. This meant giving up vital income-earning years. Leaving the workforce too soon often leads to smaller retirement benefits and savings that must last longer.
The way parents help has changed a lot recently. More than 63% pay regular bills like rent and phone costs for their adult children. Regarding large one-time costs like weddings or down payments on a home, roughly 76% have already paid or intend to pay. These aren’t small amounts – they represent major financial commitments that take money away from your security.
Parents who give money to their kids carry another hidden burden: they worry much more about their children’s financial future than those who don’t provide support. This worry creates stress that affects their quality of life and often pushes them to keep helping, which starts a hard-to-break cycle.
How it delays your retirement goals
Helping adult children directly conflicts with your retirement plans for 2026. More than a third (36%) of parents worry that supporting their grown kids might hurt their retirement plans, but they keep helping anyway. This gap between worry and action shows how emotions complicate these money decisions.
Planning for retirement becomes especially challenging when family support takes away from savings. Money that could grow through investments goes to current expenses instead. This scenario substantially reduces the total savings available for retirement. You might need to change your retirement timeline and lifestyle expectations because of this.
The money impact goes beyond just savings. Parents sometimes make bigger financial sacrifices by:
- Refinancing their homes to help adult children
- Taking on new debt later in life
- Taking money early from retirement accounts, which creates tax problems and reduces long-term growth
- Working extra years to build back depleted savings
These choices become risky because you have fewer years to recover financially. Your timeline gets shorter as retirement gets closer. Your kids have decades ahead to build careers and savings, but you have limited time to secure your financial future.
The costs aren’t just about money. Time and energy spent supporting adult children take away from your personal goals, travel plans, hobbies, and other retirement priorities. You often cannot recover these lost opportunities.
Setting healthy financial boundaries
You need to start setting financial boundaries by taking an honest look at your retirement readiness. Please review your retirement numbers independently before considering ongoing support. This gives you a clear picture of how much you can really help without risking your security.
Excellent communication helps set effective boundaries. Starting money talks when kids are young works best, but you can set new rules anytime. When you start these talks:
- Show support as a chance to grow instead of an endless safety net
- Set clear timelines and goals for independence
- Talk about how helping them affects your retirement security
- Think about working with a financial advisor who can give an outside point of view
Money experts suggest changing your role from manager to guide with adult children. Encourage them to develop their own solutions to financial challenges rather than resolving everything for them. This respects their adulthood and protects your resources.
Many families do better with a clear plan. Here are some practical ideas:
- Slowly reduce support over agreed time periods instead of sudden stops that might cause family problems
- Ask for rent or contributions if adult children live with you—this teaches real-life money responsibilities
- Match what they put in if you want to help—like matching their debt payments up to a certain amount
- Write down any loans with clear terms, payment schedules, and expectations
Remember that your kids will have chances to build their financial future through student loans, mortgages, and career growth. Your options become limited once you reach retirement age. This key difference makes it right to put your financial security first.
Setting boundaries doesn’t mean stopping all support—it means giving the right kind of help. About 96% of parents with adult children who use financial advisors feel confident they’ll reach their top three money goals. Professional guidance helps create lasting approaches that protect both generations’ financial health.
Strong finances create lasting generosity. Setting healthy money boundaries now builds real independence for everyone through retirement in 2026 and beyond.
Let Go of Expensive Hobbies
Hobbies bring joy and fulfilment to our lives. Your vintage automobiles, boats, or high-end collections might quietly drain the financial resources you’ll need for a secure future as retirement approaches. A closer look at expensive pastimes and retirement readiness becomes vital, especially when planning for retirement in 2026.
Identifying hobbies that drain your resources
Expensive hobbies pack hidden costs that go well beyond the original purchase price. Classic cars might look like excellent investments, but ongoing expenses can affect your retirement savings by a lot. These vehicles just need specialised storage facilities because, unlike some other alternative assets, such as stamps, cars take up a lot of space. You’ll pay extra for secure, climate-controlled facilities if your home lacks proper storage.
Maintenance expenses add up quickly. Classic car enthusiasts often find that specialised parts and trained mechanics are expensive. Insurance coverage adds another expense layer—collectible vehicle policies cost more than standard auto insurance. Selling these assets comes with commission and transaction fees and potential transportation expenses.
Cars aren’t the only costly hobby. Boats require marina fees, winterisation, storage, spring commissioning, and regular maintenance. Sports equipment like exercise bikes, kayaks, and golf clubs sits unused, takes up space, and loses value.
The numbers reveal the true situation. Boat owners face large yearly expenses through registration, insurance, marina slip fees, fuel, winterisation, and storage. Classic car owners deal with ongoing maintenance that can make full-service broking commissions look laughably cheap.
These hobbies also need accessories and supplies that keep adding to their cost. You’ll get a full picture by adding both upfront and ongoing expenses. Many retirees don’t realise how much their hobbies cost them each year.
How to keep joy without the cost
You don’t need expensive pastimes to enjoy retirement. Many budget-friendly options can give you similar satisfaction without emptying your retirement savings. Moving toward lower-cost activities helps save money while keeping your quality of life.
Art offers a wonderful starting point. Drawing needs basic supplies like paper and pencil, costing under €19.08 for quality materials. Quality painting starter kits with brushes, canvas, and an easel stay under €38.17. These creative outlets can boost your mood and maybe even make you money.
The outdoors provides another set of affordable options. Gardening costs almost nothing when you use community resources or trade plants online. Hiking only requires good shoes and maybe binoculars if you want to watch birds. These activities keep you physically and mentally active—key ingredients for healthy ageing.
You don’t have to spend a fortune on music either. You can get an actual piano for free on the internet if you know a few strong people to help you move it. Free community concerts happen throughout the year too.
Many retirees find volunteering more rewarding than expensive hobbies. The single most rewarding activity—whether you’re on a frugal budget or not—gives a sense of purpose and shows how much retirees can give back to their communities.
Smart planning helps you move away from costly hobbies. A dedicated hobby fund in your regular budget lets you enjoy activities without financial worry. Senior discounts on hobby-related purchases and activities can help too.
Your expertise in expensive hobbies might become an income source through teaching or consulting. This approach keeps you connected to activities you love while making money instead of spending it.
Example: Selling classic cars or boats
Classic cars show how complex and expensive hobbies and retirement planning can get. Some models have grown in value by 194% over a decade, making them look like smart investments. The reality isn’t that simple for most owners.
Maintenance alone creates giant costs. Any maintenance to the car and insurance costs all add up. Vintage vehicles often need special parts and professional restoration work that quickly eats into retirement savings.
Tax issues make things more complicated. Classic cars face capital gains tax rates up to 31.8%, significantly higher than most conventional investments. This high tax significantly reduces any profits from selling.
The market’s ups and downs add risk. Similar to stocks, the values of classic cars fluctuate significantly. Muscle cars show their vulnerability clearly—Hagerty’s Muscle Car Index dropped 38% between 2007 and 2010, and stayed 30% below previous highs. Such volatility makes classic cars unreliable for retirement planning.
Even affordable classics come with challenges. Cars under €28,630 have gained steady value, but don’t fool yourself into thinking you’ll make big money. Consider enjoying an asset that you believe will retain its value better than most vehicles.
Selling expensive hobby items can free up substantial money. One family exchanged their boat for a trip of their dreams. They eliminated ongoing costs and created lasting memories without maintenance headaches.
The 90-day test helps with retirement planning in 2026. Consider storing the item for three months to determine if you genuinely miss using it. This study often shows that emotional attachment exceeds practical value.
Keep realistic expectations if you hold onto certain hobby investments. Breaking even on an inflation-adjusted basis while enjoying the car makes it a reasonable choice. This puts expensive hobbies in perspective as lifestyle choices rather than investments.
Your 2026 retirement plan needs an honest evaluation of all assets—including beloved hobbies. Moving resources from expensive pastimes to retirement security gives you more freedom to enjoy life’s next chapter without money worries.
Sell Extra Vehicles
Most people nearing retirement are unaware that the extra cars parked in their driveways are depleting their retirement funds. Expat Wealth At Work observes that many households maintain two or more cars simply out of habit. Getting rid of these extra vehicles is a simple way to boost your retirement planning for 2026.
The true cost of maintaining multiple cars
That extra car in your garage costs way more than you might think. The total cost goes beyond just gas and repairs. Middle-class families spend about 20% of their after-tax income on transportation. A single car can cost you between €8,206.21 and €12,404.73 each year.
Insurance is a significant expense that keeps coming. The average policy runs about €164.12 per month (almost €2,000 yearly) for each car. Maintaining insurance for cars that you rarely use is a significant financial burden.
Even if you’ve paid off your older cars, they still need money. A typical repair costs €517.49. Older cars need more frequent trips to the mechanic. Licence and registration fees add up to €777.68 yearly. Maintenance, repairs, and tires cost about 10.13 euros for every mile you drive.
Add it all up – €2,388.39 in running costs plus €1,636.47 for insurance – and each extra car costs around €4,024.86 yearly. That’s more than €40,000 in ten years – money that could have been in your retirement account instead.
Try the 90-day test before selling
Selling a car isn’t just about money – emotions play a part too. Car experts suggest using the “90-Day Rule” to see if you really need that extra car.
This idea comes from how car dealers work. They get credit lines called “floorplans” that don’t charge interest for 90 days. Thereafter, interest starts adding up while the car loses value – which makes them want to sell quickly.
You can try this at home. Park your extra car or don’t use it for 90 days. If you really miss it during this time, maybe it’s worth keeping. People often find out they’re more attached to the idea of the car than they actually need it.
The 90-day period lets you check out other ways to get around. Many retirees find that renting cars or using Uber works fine for occasional trips. These options cut out ownership costs but still let you travel when you need to.
Car dealers change their prices every 30 days, with big drops after 90 days. A 2018 Audi R8’s price fell by €15,355.15 in just three months. This same smart thinking can help your retirement planning in 2026.
Redirecting savings toward travel or experiences
Selling extra cars gives you more money to enjoy retirement. You can use the money from selling a car for things that matter more. Instead of paying for cars you rarely use, this money can fund your travels, hobbies, or healthcare needs.
The savings on insurance, maintenance, and running costs keep adding up. Let’s say you save €2,862.63 yearly by selling your second car. If you’re in the 40% tax bracket and put that money in your retirement account, you might get €1,145.05 back in taxes. That’s €4,007.68 plus investment returns each year – a welcome boost to your retirement plans for 2026.
Some retirees found even bigger benefits from selling all their cars. Used cars sold for an average of €18,756.91 in 2024. This money, invested wisely, can really help secure your retirement.
Many retirees say they travel more after getting rid of extra cars. They enjoy riding bikes, taking trains, and renting cars occasionally more than keeping automobiles that they barely use.
As you plan for retirement in 2026, keep checking if your transportation assets match how you really live. You can transform the money you save from unnecessary cars into experiences that enhance your retirement and help you create the lifestyle you’ve strived for.
Release Your Work Identity
Your job title might be the toughest possession to let go when you prepare for retirement in 2026. Your career has shaped who you are through decades of work. This connection runs deeper than physical possessions and can limit you both financially and emotionally.
Why clinging to titles can hold you back
Work identity builds self-worth and connects us to others while keeping us focused on our duties. Many professionals see themselves through their careers, which creates purpose that stays with them after retirement. Studies show this attachment grows stronger when jobs provide a boost to the ego.
Keeping a tight grip on your work identity creates mental barriers in retirement. You’ll notice this when retirees keep bringing up their old jobs in every conversation. This attachment makes it difficult to find new interests. People often get stuck between their old work life and their new retirement life, not fully letting go of one or embracing the other.
Learning new purpose through consulting or volunteering
You don’t need to stop being productive in retirement – just find different ways to use your talents. Volunteering helps you move forward by sharing your skills and making new friends. Consulting brings more than money – it gives you purpose and keeps you connected to your community without the stress of full-time work.
Take your time during this change. Experts suggest trying low-stakes experiments – short 4-6 week commitments with no pressure to keep going. These brief trials help you find activities that give you energy and let you make a real difference.
Mentoring has the potential to create new opportunities. Teaching what you know to students, young professionals, or entrepreneurs rewards both you and those you help. These relationships often bring more satisfaction than holding onto old job titles.
The ICE model: Independent Continue Earning
The ICE (Independent Continue Earning) model offers a fresh take on retirement. Instead of completely stopping work, ICE helps you balance your job and personal life through meaningful, flexible activities.
This approach recognises that people need interactions, challenges, and ways to contribute. Financial independence becomes your starting point for freedom to work on what matters to you. Retirees who earn some income report better purpose, mental sharpness, emotional health, and energy levels.
Retirement reshapes your identity step by step. Your work identity stays part of you, but retirement lets you rebuild who you are. As 2026 approaches, think about which parts of your professional self to keep while you explore new sides of yourself that work never let you discover.
Conclusion
Your journey towards fulfilling your retirement requirements by 2026 hinges more on the sacrifices you make than the assets you acquire. This article explores five key areas where strategic simplification can revolutionise your retirement outlook. A smaller family home frees up substantial equity and cuts ongoing costs. Setting clear financial boundaries with adult children safeguards your retirement security and encourages their independence. Your retirement freedom grows when you rethink expensive hobbies, remove extra vehicles, and let go of your work identity.
Today’s choices will shape your retirement experience tomorrow. Take a step back and think whether your possessions and identities line up with your future vision. Most retirees find their best days come after they shed these five financial anchors. Please consider beginning to take control of your retirement planning now.
Without doubt, emotional ties make these choices tough. However, keep in mind that memories remain with you, whereas financial burdens are tied to physical assets. A 90-day test helps you evaluate if certain possessions boost your life or just drain resources you could use for meaningful experiences.
Retirement planning goes beyond “What will I live on?” to “What will I live for?” Strategic simplification creates opportunities for growth and purpose in this exciting life transition. The initial discomfort of letting go fades as financial confidence and lifestyle flexibility become the foundations of the retirement you’ve worked hard to achieve.
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