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Downsizing is on the up

Almost a quarter of adults would downsize or release equity from their property to fund their retirement, according to research from Friends Provident.

It says 23 per cent would be prepared to downsize or release equity if they did not have enough money to retire on. Twenty-eight per cent say they would continue working if their retirement income was insufficient.

Thirty-one per cent are relying heavily on inheritances despite only 14 per cent having discussed this with family members and 44 per cent are not concerned about the effect of the recession on their property inheritance despite property prices falling.

The research also reveals that 20 per cent of people over 66 have parents who are still living.

Axxis Financial Planning director Owen Wintersgill believes most people will opt to downsize their property rather than releasing equity.

He says: “Equity release has not been as well received as many thought it would be. It has not captured the public’s imagination and there is still quite a lot of resistance to it.”

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