One in seven older home owners are planning on downsizing in later life, believing that they will be unable to retire unless they move to a cheaper property, a survey has found.
The study, conducted by Prudential, surveyed more than 1,000 people and suggests that nearly half of all over-55s, who own their home, are planning to sell up and move to a less expensive property in retirement.
Home owners in Northern Ireland and the East of England are particularly likely to downsize their property, while those living in London, Scotland and the West Midlands are the least likely to sell up and move somewhere smaller.
And while convenience was found to be the main reason for moving, a significant proportion of people are relying on downsizing as a key part of their retirement plans. One in seven of those expecting to downsize said they could not afford to retire otherwise.
Those planning to move to a cheaper property expect to free up around £112,000 in equity on average by downsizing. One in nine believe they will make over £200,000 by downsizing.
Of those who expect to raise money from downsizing, 60% will use it to boost their retirement funds and improve their standard of living.
Nearly half will use the cash for travelling more, while 13% want to release equity to help their children buy a house and 14% plan to simply give the cash to their children.
Many future retirees say they don’t want the hassle of a large garden adding to their worries
But for many people, downsizing is not mainly about money, with some seeing running a smaller home as less of a hassle. Nearly three-quarters of people surveyed said convenience is their main reason for their plans to downsize.