Retirees could save thousands of pounds in the New Year. (Image: Getty)
An increasingly popular trend may hold the key to finding financial freedom in 2025 and allowing for retirees to spend more time on leisurely activities.
Experts have suggested that older homeowners may be reassessing their housing needs – downsizing could be the perfect solution.
The new trend has become popular among those of retirement age and would consider switching from owning to renting.
Joanne Couch, managing director at My Future Living, a retirement rental brand, : “Downsizing is about finding the perfect balance, a home that fits your needs today and allows you to live the retirement you’ve always dreamed of.
“Renting after selling up frees up capital, as well as time as people don’t need to maintain and clean a large property.”
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Downsizing could hold the key to financial freedom, says expert. (Image: Getty)
Buying a smaller property or renting are the two main options that retirees are faced with. Long-term security comes with buying, although it does come with additional costs.
One retiree has proved the success of this advice already who downsized to a flat. Jean Wray, 77, sold her North London house to rent an apartment in Seaford, East Sussex.
Wray said: “We used to own a lovely house but maintaining it was getting harder. We also wanted to free up some money so we could help our son with a deposit for his own place. I now have a worry-free life and if something needs fixing its sorted very quickly which is great.”
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Her new home at Homeshore House retirement development has transformed her lifestyle as she loves “being part of the community and helping get those who want to socialise to get out and about”.
Downsizing could provide a significant cash injection for retirees, according to research from the property company Savills. The estate agent found that the number of people aged 65 and over who currently live in a four-bedroom house stands at 1.29million.
By switching to a two-bedroom house, these homeowners could unlock an average of £305,090 which translates into an extra £1,218 per month over a 20-year period.