|    FM Home   |    FM News   |    FM Forum   |    FM Blog   |    25th of February 2018
|   Banking  |   Insurance  |   Property  |   Mortgages  |   Economy  |   Investments  |   Credit Cards  |   Debt  |   Loans  |   Pensions  |   Companies  |  

Property News feed Property News

All Financial News feed All Financial News

Downsizing for retirement a questionable plan

Bookmark and Share

by Gill Montia

The assumption that downsizing from the family home as old age approaches can help fund a comfortable retirement has been challenged by Standard Life.

The insurer has recently conducted an “extensive analysis” of the UK property market to calculate how much retirement income downsizing can generate, and is warning those whose retirement dreams are dependent on moving into a smaller property that they are in for a shock.

The research revealed that on average, downsizing a home in the UK today will provide only £43.50 a week retirement income, compared to £53.40 in 2008.

The reduction is due to the fall in property prices, combined with a reduction in annuity rates.

Moving from a detached house to a bungalow will potentially generate £71 retirement income a week, compared to £100 in 2008, and moving from a semi-detached home to a flat would provide only £4 a week.

During the property boom years, Britons may have favoured building equity in their homes to saving for retirement by other means.

However, Standard Life’s senior pensions policy manager, Andrew Tully, warns that “the old adage of not putting all your eggs in one basket has never been more appropriate”.

Discuss this in the Finance Markets forums

Story link: Downsizing for retirement a questionable plan

News posted: April 8, 2010

Financial Services:

Related financial stories to: Downsizing for retirement a questionable plan:
Previous: «
Next: »

Visited 3482 times, 1 so far today

No Comments

No comments yet.

RSS feed for comments on this post.

Sorry, the comment form is closed at this time.

Tags: , ,