For many seniors, downsizing means a shift in lifestyle, priorities, and financial strategy. Whether you're moving to a condo, apartment, or retirement community, one question often looms large: Should I buy or rent?

There’s comfort in ownership. It feels familiar, stable, and for many, it’s a symbol of independence. But ownership also comes with responsibilities like property taxes, maintenance, repairs, and the emotional weight of managing it all. Renting, on the other hand, offers flexibility and freedom. It can unlock capital for travel, gifts to children and grandchildren, or future long-term care costs. So how do you decide?

1. Understand the Financial Trade-Offs

Let’s say you sell your home and net $800,000 after closing costs. If you invest that amount and earn a hypothetical 5% annual return, that’s $40,000 per year, or $3,333 per month in income.

Ask yourself:

• Would an additional $3,333/month cover your new rent and other living expenses?
• If not, are you comfortable dipping into the capital of your investment?
• Is your priority maximizing income, preserving capital, or leaving a legacy?

This may be the first time you’ve had a large lump sum to invest. That can feel overwhelming. Financial planning after losing a spouse or downsizing is about more than numbers, it’s about aligning your money with your values.

2. Consider Your Legacy Goals

If leaving something behind for your children or grandchildren is important, you’ll want to compare how your home and your investments might grow over time.

• Real estate can appreciate, but it’s unpredictable and comes with costs.
• Investments can be structured to bypass probate and offer flexibility, but they may attract capital gains or income tax.

Remember: your principal residence is tax-free when sold or passed on. Investment accounts, while potentially more liquid, may be taxed. A thoughtful financial plan can help you weigh these options and choose what’s best for your family.

3. Renting Can Unlock Opportunities

Renting can free you from home maintenance and associated costs, but it can also free up cash for meaningful experiences and contributions:

• Travel and leisure
• Charitable giving
• Helping children or grandchildren with education or housing
• Preparing for future care needs

If you’ve ever considered making a gift to charity, renting could make that possible in a bigger way. And with access to cash, you can respond quickly to unexpected expenses or opportunities.

4. Update Your Will and Plan for Taxes

Downsizing is a great time to update your will and powers of attorney. Your assets have changed, and your wishes may have too. It’s also a good time to review your tax strategy:

• Maximize TFSAs for tax-free growth
• Consider RRSPs if you have earned income
• Use non-registered accounts strategically to manage capital gains

A tax-efficient plan helps preserve your wealth and ensures your legacy is passed on the way you intend.

5. Explore Retirement Communities

Many seniors hesitate to consider retirement communities, but in my experience having visited many local homes, they’re often much nicer than people expect. They offer:

• Social connection
• On-site amenities
• Safety and support
• Freedom from home maintenance

Whether you buy or rent in one of these communities, the lifestyle benefits can be significant.

You Deserve a Plan That Reflects Your Life

Downsizing is a major life event. Your financial plan should reflect that. It should be:

• Personalized to your goals and lifestyle
• Tax-efficient to preserve your wealth
• Low-risk and income-generating to support your needs
• Flexible so you can adapt as life changes

Whether you’re navigating financial planning for widows & survivors, or simply seeking clarity in retirement, you deserve a guide who listens, simplifies, and helps you move forward with confidence.

Conor Amyot is a Senior Consultant with over 10 years of experience in financial planning. Born and raised in Oshawa, he brings a deep understanding of the financial challenges families face during life’s most difficult transitions. Conor lives with his wife and their two young children and is passionate about helping widows and survivors find clarity, confidence, and peace of mind through personalized financial planning.

Email: Conor.Amyot@IG.ca 
Phone: (905) 441-1871

Conor Amyot

Senior Consultant 

IG Wealth Management Inc., Mutual Fund Division

This is a general source of information only. It is not intended to provide personalized tax, legal or investment advice, and is not intended as a solicitation to purchase securities. Conor Amyot is solely responsible