According to Churchill Retirement Living’s new research, only 14 percent of retired people or persons nearing retirement are interested in moving home. However, this reticence could cost pensioners a lot and cause them to miss out upon a huge cash increase. The average retired person will make PS150,000 by downsizing. It is believed that this is negatively impacting housing markets.
Retirees can make a bold move and sell their home to buy a smaller property for retirement. This will allow them to put more money in their pocket, as well as help the market stimulate younger generations. Churchill Retirement Living data showed that every property bought for retirement results in an average of 2 to 3 additional purchases. This allows for young families and first-time buyers to unlock properties.
Spencer McCarthy, Churchill Retirement Living’s CEO, shared his views on why it might be worth considering for retired people. According to McCarthy, “Our society often views downsizing as an act of necessity, rather than as something we can do for ourselves. But new data shows that there are many benefits, and not only for the individual, but for their family and for society in general.
READ MORE: National Insurance shock! The pensioner NI levy won’t count toward the State Pension
McCarthy stated that the UK has a bad reputation for downsizing and clarified some of any misunderstandings. McCarthy stated that there is another barrier, which is the misperception about how downsizing should look. This is a typical British issue. In the UK, specialist retirement housing is often considered to be the same as assisted living or care homes. This is contrary to other countries.
Independent retirement communities are lively places that allow people to live an active, independent lifestyle longer. These developments provide comfortable and low-maintenance apartments with the possibility to meet new people and socialize in communal areas. These places are usually located right in the center of the town and help to support local economies. They also improve the health and well-being of residents.
McCarthy also highlighted the many benefits that pensioners can enjoy by downsizing their houses for the entire market. McCarthy stated that encouraging more people to reduce their homes is key in releasing space for first-time buyers and families. Homes for Later Living recently reported that for each person who downsizes to retirement properties, two-three to three more are available further down the housing ladder. And, roughly two thirds of all downsizing actions lead to first-time buyers. It is essential to free up housing supply in order to solve our housing crisis.
A downsizing strategy could give pensioners more flexibility and freedom in retirement. 28 percent said they would use additional funds to increase their pension. 41% said that they would use the money to insure their loved ones, which highlights the social benefits of being able access the funds.
McCarthy said, “Moving into retirement properties can allow more people to live independently and safely as they age.” McCarthy stated that millions of seniors are living in unsuitable homes, putting them at greater risk, and increasing pressure on already fragile systems.
We all need to be able to live in our homes as we age. By accepting the advantages of downsizing, we can all enjoy a longer life, which will make us all happier, healthier, and potentially even earn a little extra.
Publited Fri, 10 Sep 2021 at 21:31.05 +0000