Can I afford to retire? This is a question most of us will have to answer at some point in our lives. Worryingly, almost 1 in 5 people approaching retirement fear they can’t afford to retire and will have to carry on working.
According to new research by HSBC, the study questioned more than 18,000 people in 17 countries and investigated attitudes towards retirement and finance.
The results were an astounding 1 in 5 people feared they can’t afford to retire and wont be able to when the time approaches.
Quick Move Now’s Managing Director, Danny Luke, commented:
It’s concerning that as many as 1 in 5 people fear for their financial security in retirement, and it’s an attention-grabbing statistic, but a lack of pension investments and financial planning needn’t necessarily mean financial hardship.
When carrying out financial planning for retirement, many homeowners neglect to take their largest financial asset into consideration; their property.
With rising property prices, many UK workers struggle to both own a property and pay into private pensions or other investments but, in effect, every mortgage repayment has been paying into an investment that has the potential to see them through their retirement.
It has been estimated by UK retirement property developer McCarthy and Stone, that as much as 33% of British homeowners would consider downsizing in retirement if they found a suitable property.
Downsizing home can release a vast lump sum, especially if you’ve owned a property for a considerable amount of time and built up significant equity. Accessing the equity tied up in your existing property may enable you to consider a wide range of investments that provide regular payments, include lifelong annuities and buy-to-let property.
The trend of downsizing in retirement is certainly something our company has seen a growth in in recent years and is becoming a lot more ‘normal’.
Fewer retirees have close family nearby, therefore many of our customers are very conscious of the costs that are likely to be involved in property maintenance should they struggle to continue carrying out certain tasks themselves in later life and require additional help.
At this point, the idea of downsizing to a smaller, more manageable property becomes an increasingly attractive prospect.