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Downsize

Fund your retirement lifestyle using your property

Why downsizing could help your retirement pot

If you decide to sell your home, it could release money for you to save or invest to provide you with future income. You may also decide that buying a smaller house that’s closer to family is a good lifestyle choice.

Whatever you decide, there are many financial, practical and emotional factors to consider – expert advice can help you understand these.

Why to consider downsizing

There are many reasons why you might consider downsizing as you approach retirement, such as:

  • financial
  • lifestyle
  • health
  • a smaller home
  • a fresh start. 

Financial

Selling your home to buy a less expensive place, or a house that costs less to maintain, will result either in sale proceeds or reduced expenses. These could either help your retirement income last longer, or could be invested to help provide future income.

Lifestyle

Lifestyle reasons may mean you to want to move closer to loved ones, or the places you spend most of your time. Other lifestyle reasons might include wanting to reduce the time spent maintaining your home (like gardening, cleaning, repairing, etc.) or being able to travel without worrying about who’ll look after your house while you’re away.

Health

Selling up and moving to a warmer climate may improve your health. Or you could move closer to the healthcare or specialist services you need.

A smaller home

If your house used to be a busy, full family home but the kids have now left, it could be a good time to consider downsizing. A large house with empty rooms that require lots of upkeep can quickly feel like a burden. Retirement is a great opportunity to find the perfect sized home for your new needs.

A fresh start

Retirement is just that – an exciting new start. It makes sense to consider a new home to match your new circumstances, especially if your children have left home or you’ve lost a loved one.

The hidden risks – and how to avoid them

There are plenty of things to consider before you sell and downsize. You can help to reduce your exposure to risk by planning ahead as far as possible, including using professional advice. 

Here are some risks to consider, and ideas of how to manage them:

Potential risk Managing the risk
A smaller place isn’t always cheaper Understand all the costs of moving, living in and maintaining your new home before you move
You may miss people and facilities in your current area Trial your potential location before you commit by house sitting or renting
It may be difficult living in a smaller place Try locking up some of your current rooms and doing without items you may not be able to take – it may give you an idea if you’re ready for a smaller place
The home you buy turns out to be unsuitable in the future Working with an Adviser will help you make a long-term plan that ensures you’ll understand your options and potential future implications
You’re unable to sell your home for the price you’d like Make sure you know how much money you need to achieve your financial goals – an Adviser can help here

How an Adviser can help

Talking to an Adviser is a great way to understand if downsizing and selling your home is the best choice for you.

They’ll bring the right knowledge, expertise and guidance to help you plan for your retirement in the most effective and useful way. Your Adviser will be able to create a plan for you, tailored to your own needs.

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Important information

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The content on this website is for information only. The information is of a general nature and does not constitute financial advice or other professional advice. Before taking any action, you should always seek financial advice or other professional advice relevant to your personal circumstances. While care has been taken to supply information on this website that is accurate, no entity or person gives any warranty of reliability or accuracy, or accepts any responsibility arising in any way including from any error or omission.

A disclosure statement is available from your Adviser, on request and free of charge.