A quarter of retired homeowners aim to downsize and raise an average of £62,000

Only six per cent intend to move into specialist retirement accommodation

Alex Johnson
Friday 23 August 2013 12:24 BST
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Many pensioners face the prospect of having to sell their home to pay off the mortgage
Many pensioners face the prospect of having to sell their home to pay off the mortgage (Getty Images)

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While 73 per cent of the UK’s 10.4 million pensioners own their own home, around 26 per cent expect to sell their property to raise money, according to new research from Prudential.

Four in every five retired homeowners who expect to sell are planning to buy another property with three quarters after a smaller and less expensive home. On average, they expect downsizing to raise £62,000.

Nearly a quarter plan to use the money raised to boost their income in retirement, 13 per cent will pay off debts and eight per cent say they’ll use the money to help with everyday living costs.

Prudential’s research also shows that 22 per cent of retired homeowners still have an outstanding mortgage, with average monthly payments of £254.

Only six per cent of pensioners planning to sell their home intend to move into specialist retirement accommodation, with four per cent expect to move into a rental property.

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