Downsizing ‘does not work in every case’

Homeowners aged between 55 and 95 may wish to look into lifetime mortgages, due to the fact that downsizing is not an option that is suitable for everyone.

Many will not want to leave a house they may have lived in for many decades, as it will be full of memories and they do not want to go through the stressful process of moving to another home.

According to Rosie Staal, author of Earning Money After You've Retired, there are a varied range of options available for those who find they need to bring in a little bit more money in their retirement, while record low interest rates and high inflation could also be having an impact on how comfortable older people are financially.

Downsizing disadvantages

She noted there are many disadvantages to downsizing, which may mean equity release schemes are a more appealing choice for a lot of people in need of some extra funds.

Ms Staal pointed out some of the key considerations to make are to think about where the family would stay if they ever wanted to stay over, while a space for entertaining grandchildren may also be one of the main reasons people do not want to move to a smaller home.

"Can we cope with the upheaval of a move and, then, without the familiarity of environment and friends? Is it going to be restricting to have to adjust to a smaller place?" asked the author, who added: "Where will all the furniture go? Will the garden be missed? Will it be too much like the end, a large punctuation in life?"

Take advice

The commentator suggested those mulling over downsizing and equity release plans ought to speak to people who have gone through each process and take their advice before they come to a final decision on what to do about their house.

A report by This is Money recently pointed out expert advice is a must for anyone thinking of using lifetime mortgages to raise a bit more income for their retirement.

Using the equity release calculator from Key Retirement Solutions could help homeowners aged between 55 and 95 to make a decision on the product.

Posted by Richard PlannerADNFCR-2572-ID-801328116-ADNFCR

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About Key Retirement Solutions

Founded in 1998 Key Retirement Solutions is the leading over 55’s specialist adviser. Key Retirement Solutions is a limited company registered in England No 2457440 with its Head Office at Key Retirement Solutions, Baines House, 4 Midgery Court, Fulwood, Preston, PR2 9ZH. Key Retirement Solutions is authorised and regulated by the Financial Conduct Authority.