I'm not quite at that stage in my life, but I can identify with the problem by comparing retirement to a weekend of bad weather (only longer).
I think that many retired couples assume they only need a small house when the kids have moved out and there is just the two of them. Think again, you probably need more space.
My parents house is only small, but at least they have seperate lounge and dining room, and my Dad has an allotment to escape to. My inlaws had a combined lounge/diner and only a small garden, so no escape from each other when the weather was too bad for golf or bowling.
