One in seven won’t be able to stop working unless they sell family home
But there are few suitable houses on the market and a “residential revolution” is needed to house the UK’s growing population of pensioners, town halls have warned.
The number of specialist homes for older people will have to increase by 400,000 units in England alone in less than 20 years to cope with the one in five people set to be over 65 in a decade.
That means an increase in building of 75 per cent by 2035, according to the Local Government Association.
However 80 per cent of the homes Britons will inhabit in 2050 have already been built which will make it very difficult for the 47 per cent of over-55s homeowners planning to sell up and move to a less expensive property in their later years, found a survey of 1,000 people by insurance giant Prudential.
And while convenience was found to be the main reason for moving, a significant proportion are relying on downsizing as a key part of their retirement plans.
Those planning to move to a cheaper property expect to free up around £112,000 in equity with one in nine (11 per cent) estimating a nest egg of more than £200,000.
But there are few suitable houses on the market for older people
Almost two thirds (60 per cent) will use the money to boost their retirement funds and improve their standard of living.
Councils across the country are innovating when it comes to delivering housing for older people
Vince Smith-Hughes, a retirement income expert at Prudential, said: “With the average amount of equity raised likely to be just over £100,000, and with many other demands on this cash – such as helping children, paying off debts and putting money aside to pay for care in the future – it is clear that for most people the best way to fund retirement is through saving as much into a pension as early as possible in their working lives.”
Meanwhile local authority leaders are warning of a chronic under-supply of desirable, affordable and “age-friendly” homes which leaves retirees wanting to “right-size” to more manageable accommodation unable to do so, they say.
The number of specialist homes for older people will have to increase by 400,000 units in the UK
Only 0.6 per cent of over 65s live in purpose-built accommodation with a form of care support such as 24/7 on-site staff – 10 times less than in more…