Nearly half of all over-55 homeowners planning to downsize
More than 3.9 million people over-55, which is 47% of homeowners, plan to sell and relocate to a smaller, cheaper property in the future, according to Prudential.
The report found that as many as 13% felt they would not have enough money to retire unless they downsized. On average, the downsizing was likely to leave over-55 homeowners £112,000 better off.
Substance over style?
The numbers seem to suggest that downsizing is all about money but, in fact, 74% of those surveyed said living a property that was more convenient and manageable was the main motivation in downsizing. A little over a third of people even referenced wanting a smaller garden.
On the flip side, 28% said that releasing the cash for retirement is the main reason to move to a smaller home.
Where will the extra money be spent?
As mentioned, around 60% are looking to improve standard of living by boosting retirement funds through downsizing. However, there are three other key reasons pinpointed:
- Cash for travelling - 47%
- Help children buy a home - 13%
- Give money to children - 14%
Prudential retirement income expert, Vince Smith-Hughes, thought some of the results were surprising and said:
It is interesting to see that these figures challenge the common theory that ‘my house is my pension’. Although we see a large proportion of those taking equity from their homes to boost their retirement incomes, most people have accepted that the main reason they need to move home in later life is for convenience.
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