A new survey has highlighted a divide in attitudes towards downsizing in retirement, with less than a quarter of Britons planning to move to smaller homes.
According to research conducted by Opinium for Hargreaves Lansdown in September 2023, only 23% of respondents intend to downsize once they retire, while 37% prefer not to and 39% remain uncertain.
The study of 1,500 people found that age plays a significant role in these decisions, with 32% of individuals aged 18-34 open to downsizing compared to a mere 14% of those over 55.
Emotional attachment to their current home is a primary deterrent, cited by 31% of participants, and this sentiment escalates with age; 43% of the over 55s express strong attachment, contrasting with just 12% among the younger cohort.
Financial concerns also influence homeowners’ reluctance to downsize. 22% believe it is too expensive, and 19% feel they have sufficient funds for retirement without needing to downsize.
Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said: “The idea of downsizing your home in retirement can seem appealing but relying on it could spell disaster for your retirement planning.”
She pointed out the practical and emotional challenges that come with such a move, “Over time, we grow more attached to our home, and this can make it difficult to move,” and the financial reality, “the various costs associated with buying and selling a home can really mount up.”
Morrissey added: “Downsizing can play a role in retirement planning, but it is important not to rely on it to fill gaps in your pension.”
