According to the survey done by the International Longevity Center, states that 50 per cent of people over 55 years of age and either considering downsizing on their home or have already done so. It has been reported that there are already cases that this happened, and some homeowners have been released of up to $100,000 in equity. This they do in order to fund for their retirement and savings income.
The reason for doing is, most of these homeowners are already considering the expenses that could be incurred during their prime years. The report also states that even though downsizing is not for everyone, there is a factual need to provide choices for those who would want to move out, and that they should be allowed and do so whenever they want and need.
According to Robert Lawrence a pension expert, he said that "downsizing would only grow in popularity among older people due to the lack of suitable alternative pension provision."
Well, it must a practical things to do, especially nowadays, inflation rates are rising up the prices of commodities. The funds that have been released to homeowners because of downsizing can be used to fund for other things, like recreation, to help reduce debts and help top up pensions.
Lawrence also stated that, "When an individual is considering his later life income and needs, he needs to be looking at his property wealth alongside his retirement benefits more generally. It is therefore important that the government takes steps to ensure property wealth and options such as downsizing and equity release are factored into the remit of Pension Wise."
As for the survey statistics, of the 1,252 homeowner respondents, 32.5 per cent are considering to downsize, 15.6 per cent have already done it. 35.2 per cent said that they will put the money they got from downsizing towards their savings and the 34 per cent said that it will go towards their pension.
