A new study has found that while a third of over-45s (29%) say they have plans to downsize in the next five years, just 13% of over-75s have actually made the leap.
The research, conducted by Key Later Life Finance, found that economic factors are the main driver behind downsizing decisions, with almost half (43%) of those looking to downsize or have made this move saying that a smaller property is easier to upkeep.
However, the study also found that emotional factors play a role, with 70% of respondents saying that they are keen to stay in the home that they live in for the rest of their lives.
The study’s findings suggest that downsizing is not a decision that should be taken lightly, and that it is important to consider all of the factors involved before making a move,
Will Hale, CEO of Key Later Life Finance, said: “As people age, downsizing is often suggested as an opportunity to release some of the value tied up in their homes and find a property which is more age appropriate.
“However, this research suggests that as people age, their home as well as the community they live in provides them with confidence, reassurance and security with the main driver behind any potential move being economic necessity.
“For some downsizing is the right answer. However, for others finding a way to boost their retirement finances while staying in the property they love – and can afford to adapt – and the community they know is a better option.
“A home is much more than a roof over your head and can provide security, confidence and reassurance as people age.”
