Thinking of selling the family home and moving to a less costly property to provide money for retirement? If so, you’re not alone. When it comes to funding retirement, selling property is at the heart of many retirees’ financial plans. Recent research found that around 1 in 3 (30%) of those surveyed said they would downsize to live in a smaller property with lower costs to meet a shortfall in retirement funds.*
Of course downsizing doesn't just have to be about meeting retirement shortfalls. There are often very good and practical reasons for choosing to downsize. A smaller home is usually easier to clean and has less maintenance than a larger one. Having a smaller property may be cheaper to heat, meaning you could see lower energy bills. Downsizing may also give you more disposable income to use for things you enjoy for example hobbies and holidays. And with some people developing mobility issues later in life, a smaller home, perhaps on a single level, could help, even if a wheelchair or walker are needed.
Before deciding whether to downsize as part of your financial plan, it’s useful to look at the pros and cons closely. This is a big decision, so you should check that moving to a smaller home will give you the financial benefits you need and suit your lifestyle in retirement.