Retirement: Meet the pensioner saving money on energy bills after downsizing | Personal Finance | Finance
More and more people are considering selling their property to meet rising costs according to a survey by Halifax which shows one in five (17 percent) of British homeowners say downsizing is something they are considering to save money. Research by Help me Fix claims people who downsize from a detached property to a semi-detached property, could drastically reduce energy bills by £650 a year which could really help those who rely on the state pension. One pensioner has shared how it has worked for her after moving back to the UK from Spain.
Now, 75-year-old Susan Long is enjoying retired life in a retirement development close to Portsmouth.
Originally from Marlborough in Wiltshire, Susan was a civil servant for 25 years before retiring to Spain with her husband Peter, who has since passed away.
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.
“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.”
READ MORE: Cost of living payments and energy bill support will be paid in 2023
Dominic Stead, property director at My Future Living said downsizing and renting in a retirement community can make good financial sense for older people.
He said: “Downsizing and renting in a retirement community has become popular in recent years, but the cost of living crisis, and rising utility 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 free 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.”
DON’T MISS:
It’s not just about saving money – many pensioners enjoy living in a retirement community because some housing developments offer regular coffee mornings, garden parties in the summer months, birthday celebrations and an annual Christmas lunch.
Susan added: “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.”
Most retirement properties are available on assured lifetime tenancies offering the same security 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.
Pensioners who want to continue to own their home could sell their current property and buy a smaller one instead.
Alternatively, they may decide equity release is an option for them – while it won’t suit everyone, this couple say they are living the dream after ‘life-changing’ advice.
It’s enabled Noel Wright and his wife Suzanne to move to Cornwall and feel like they are on holiday every day of the week.
One in three homeowners are considering taking out an equity release scheme to raise the cash they need to become debt free according to research carried out by OneFamily Advice,
Equity release is usually available for homeowners aged 55 and over, with people in their 60s and 70s able to raise the most money.
Research from Age Partnership shows mortgage repayment is always one of the top reasons why their customers release money from their home.
Renovating or making home improvements is also a popular reason for releasing equity.
Another common reason for people releasing their money from their homes is debt consolidation.
