Retirement ruined by downsizing

A study by Saga has revealed that 10% of retirees are forced to move house once they stop working.

Saga said as living costs continue to soar, retirees do not have sufficient funds to cover a settled and comfortable retirement. Consequently, retirees are forced to move home or downsize in order to achieve living costs in line with their pension.

The study revealed 31% of all retired people have moved area at least once since they stopped working.

Andrew Goodsell, chief executive of Saga, said retirement should be an opportunity for people to enjoy pursuits that they have dreamt of throughout their working life, but had little time to fulfil. It is a worrying trend that these aspirations of a settled retirement are being ruined by the need to downsize.

Those approaching retirement said peace and quiet, good shopping facilities, a friendly neighbourhood and good healthcare facilities are all important when deciding where to live once they stop working.

However, once retired this changes with the main reason for moving being replaced with the need to downsize.

A recent study by Hargreaves Lansdown has established over 60% of adults are not paying into a private pension. This is highest proportion since records began 12 years ago and is further proof of how people are failing to recognise the need to save for their retirement.

Discuss this in the Finance Markets forums

Story link: Retirement ruined by downsizing