A newly released report has revealed that a quarter of retirees are currently struggling with finances, and a third admit they underestimated how much money is needed to live comfortably in retirement.
The report, conducted by the Age Partnership, surveyed British adults of all ages and analysed industry research to find out the real state of the UK’s retirement finances.
Current retiree living costs are £208 according to the report, however the basic state pension is £122.30 per week, leaving a deficit of £85 per week. This equates to a shortfall of £4,420 per annum.
It’s no wonder then that the non-retired population are looking at other ways to raise funds for life after work. 1 in 10 plan on downsizing, having built up a sizeable equity pot in their larger-than-needed homes that, statistically, mortgage-free.
With a growing choice of retirement homes now on the market, many people are looking to move to properties more suited to the needs of older life, whilst also freeing up some valuable cash to fund their lifestyles.