Downsizing may not provide enough retirement income

Wednesday, April 7th 2010

Britons who are planning their retirement income options may be interested in claims that relying on property for funds may not be the wisest move.

This is according to Standard Life, which reveals that downsizing a UK property provides an average weekly income of £43.50 in retirement.

But in 2008 this sum was higher at £53.40 before property prices fell, the organisation explains.

Senior pensions policy manager Andrew Tully states: "People pinning their retirement dreams on downsizing their property will be in for a shock."

It could be a "retirement disaster" to rely solely on such income and people should make provision elsewhere, he advises.

However, funds generated from downsizing vary depending on the region where the house is situated.

The organisation notes that those moving from a detached house to a bungalow could create a weekly income of £71.

However, Britons could find they are able to save money by downsizing, because smaller properties often cost less money to heat and other potential savings can be available.