More UK property investors plan to take affirmative action to prepare for retirement by downsizing their current property.
In a previous article just a couple of days ago we talked about the horrendous position that many UK citizens find themselves in today, and that is the realization that a huge proportion will never be able to afford to retire, UK property investor or not.
This has large swathes of the population up at night worried sick, so much so that over 3.9 million UK property investors over the age of 55 plan to sell and buy a smaller property, according to new research from Prudential.
Participants in the study were from all regions of the UK, the research shows as many as 47% of homeowners and UK property investors aged over 55 were planning to take this course of action, on average they expected to raise around £112,000 in equity, with of UK property investors 11% expecting to make more than £200,000.
“It is interesting to see that these figures challenge the common theory that ‘my house is my pension’,” said Vince Smith-Hughes, a retirement income expert at Prudential.
“Although we see a large proportion of those taking equity from their homes to boost their retirement incomes, most people have accepted that the main reason they need to move home in later life is for convenience.
“With the average amount of equity raised likely to be just over £100,000, and with many other demands on this cash – such as helping children, paying off debts and putting money aside to pay for care in the future – it is clear that for most people the best way to fund retirement is through saving as much into a pension as early as possible in their working lives.”
A lack of available housing was another reason why UK property investors over-55 felt downsizing wasn’t more popular, with 24% blaming the cost of moving and 17% citing high house prices.
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