A new report has found that higher moving costs will eat into the profits of around 18 million pensioners who intend switching to smaller homes to release retirement funds.
The report, from the Prudential, called 'The cost of moving home in the UK' has revealed that the average moving costs are £6,200, rising as high as £13,500 in London. The research shows that only a move from London or the South East to smaller property releases more than £50,000. Moving from London would release on average more than £99,000, while moving from a similar sized property in the South East to the North would release around £60,000.
Our view
More and more are and will look at their main asset i.e. their home to secure their retirement. As ever though, 'all of your eggs in one basket' can be a risky approach to retirement.