Downsizing wave could hit prospective pensioners

Posted: 17 Mar 2009 08:38:45 GMT

A great number of prospective pensioners may soon be forced downsizing their properties as a result of falling income expectations among those planning to retire.

Financial services company the Prudential has published a report showing that the prospective income of those hoping to retire this year is £884 lower than that enjoyed by last year's retirees.

Those hoping to retire in 2009 can now expect to enjoy an average of £17,779 per year, Prudential said, compared to the £18,663 enjoyed by those who retired in 2008.

The falling revenue enjoyed by retirees may mean that a wave of house sales takes place throughout the year, as financially savvy homeowners choose to downsize their property before the value falls any further.

Selling a property in the current market is particularly difficult, however, but selling a property online could help achieve either a faster sale or a higher sale price.

Selling a property online could lead to a greater number of buyers bidding for a property, which could make a significant difference to the profit made on the choice to downsize.

"Retirement will mean taking a £7,129 cut in income compared with the national average salary of £24,908 but some believe they will be considerably worse off," said a Prudential statement.

"The Prudential survey shows that 11 per cent of people retiring in 2009 expect to receive an income of less than £10,000 a year from their pensions and investments."



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