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14 Jun 2017

One in four plan to downsize or relocate in retirement

One in four over-50s in the UK plan to move house when they retire, according to new research.

In a survey for retirement specialist Retirement Advantage, Censuswide questioned 1,013 UK adults over the age of 50 who are yet to retire. Of those who plan to move, almost two thirds (62%) intend to downsize and the remaining 38% will move to a different area.

The majority (63%) of those looking to move to a smaller property are doing so to generate cash for living expenses in retirement, while one in ten (10%) want to help children with house deposits.

Plans to move are highest in London (32%), followed by Yorkshire (30%) and East Midlands, South West and South East (all 29%).

And according to Retirement Advantage, with over-50s holding more than two thirds of the UK´s overall property wealth, worth around £2,291bn, these plans will have a significant impact on the housing market.

Andrew Tully, pensions technical director at Retirement Advantage, said: “With the UK housing market showing signs of slowing, questions have been raised over how we can find supply to match demand. This research shows retirees may hold the answer.

“Those approaching retirement are thinking holistically about their finances, and considering property as part of their asset mix. Many will choose to move house so they can use the capital generated to fund the initial stages of retirement, rather than immediately relying on pensions and other savings. It can also make financial sense for retirees given recent regulatory and tax changes around property and pensions.

“However, moving house is an expensive business and people are often shocked by how little money is left once they´ve paid for their new house as well as the fees and taxes associated with moving. It´s important over-50s understand there are other ways to use their property to fund retirement. Equity release, for example, allows people to access some of the cash stored up in their home, without needing to move. Its vital people get professional financial advice so they are fully aware of all their options and can get the best outcome in retirement.”

Copyright © M2 Bespoke 2017

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