Why downsizing and renting in a retirement community could improve your finances in 2023

As the cost of living continues to bite, more people are considering downsizing to meet rising costs. Recent research from Halifax[i] shows one in five (17%) of British homeowners say ‘downsizing’ was something they had considered to help with the financial squeeze. The reduced cost of living (72%) was most commonly named as a benefit of downsizing, with a third (33%) placing it as the number one benefit.

Dominic Stead, Property Director at My Future Living says downsizing and renting in a retirement community can make good financial sense for older people.

Dominic says, “Downsizing and renting in a retirement community has become popular in recent years, but the cost of living crisis, and rising utilities bills could prompt more retirees to decide this would be the right move. Financially it can be a great option, as the sale of a home can frees up capital and moving to a small place will reduce energy bills

“There are other benefits too such as living in a sociable community with options to meet new people, no longer worrying about maintenance and the upkeep of a property as they are taken care of and, living in a more manageable sized home can be easier for people as they get older. There is also a 24-hour emergency alarm system in each apartment and an onsite manager on duty.

“The financial and social benefits of downsizing could mean a happier retirement and the freedom to just enjoy life. With retirement properties located in some wonderful locations throughout the UK we expect a busy start to the New Year.”

Most retirement properties are available on assured ‘lifetime’ tenancies offering the same security of tenure as home ownership. People can stay as long as they wish without fear of being asked to leave by the landlord, as long as they stick to the terms of the lease.

One lady enjoying life living in retirement apartment in Norfolk House, a retirement development close to Portsmouth is 75 year old Susan Long who moved in after moving back from Spain where she had lived with her husband.

Originally from Marlborough in Wiltshire, Susan was a Civil Servant for 25 years and then retired to Spain with her husband, Peter where they spent 14 glorious years.  After Peter’s sudden death, life changed dramatically.

They had been married for 54 years and with two daughters and five grandchildren in the UK there was a strong pull to move back to England.  On one of her trips back to see her family, she was persuaded by her daughters to go and look at some retirement properties.

Susan said: “Even though it was a grey September day, the minute I walked into the first flat in Norfolk House, I just knew this was my new home. It just felt so right.”

Susan loves her one-bedroom flat and feels very at home. “It’s cosy and comfortable and I am so happy here. I just love going back home after being out for the day. Even though I miss my friends in Spain, I feel settled and happy with the life I have here.”

Susan has fallen more in love with her new life thanks to the supportive and friendly community of neighbours. From day one, they would knock on her door offering a coffee, friendly conversation and even curtains for the flat. Susan cherishes being around people who are sociable and good neighbours.

Even during the lockdowns, Susan wasn’t lonely as she would talk to her neighbours through her window or have a coffee in the corridor with their masks on. At the development, there are regular coffee mornings, garden parties in the summer months, birthday celebrations and an annual Christmas lunch.

Susan adds: “Moving back to the UK and renting in retirement was a big change for me, but I can honestly say I haven’t looked back and am so happy I made the decision. Even though I live on my own, I never feel alone here.”

Living in Portsmouth is ideal for those that want to live near the coast, and for people like Susan returning from a life in Spain where living by the sea was part of the appeal.

My Future Living currently has a one bedroom retirement apartment in Charles Dickens Court, a charming period property developed for retirement living in Portsmouth for £795 per calendar month which is perfect for those that want to be in the city centre with all its excellent facilities.

To find out more about renting a home in a retirement development in 2023 visit: www.myfutureliving.co.uk

[i] https://www.lloydsbankinggroup.com/media/press-releases/2022/halifax/downsizing-could-less-be-more.html