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Quarter of homeowners will need to downsize for retirement

Around 63% of homeowners favour downsizing their property to fund their retirement, according to research by Now: Pensions.

Of the 2,000 people surveyed, nearly 39% think that unlocking housing wealth will be a fundamental aspect of funding their retirement. 

Of those, 24% are relying on their home as they don’t expect to have any private pension savings once they retire.

64% of homeowners aged by 50-69 said that they wish to downsize their home or move to a cheaper area to supplement their pension savings.

Further findings:

  • 44% of respondents who do not currently own their home fear they won’t by the time they retire
  • 47% of non-homeowners said they will rely on state accommodation 
  • 30% of non-homeowners said they will have to continue working to pay their rent.

Adrian Boulding, director of policy at Now: Pensions, said:

“Whilst it’s clear from our research that many UK homeowners remain optimistic that they can fill their income gap by trading down to a smaller house, they need to be cautious, as it’s a well-known fact that there is shortage of affordable and suitable homes that older people want to live in.”

Talk to us today about retirement planning.