One in seven older home owners planning to downsize in later life believe they will be unable to retire unless they move to a cheaper property, a survey has found. Nearly half (47 per cent) of over-55s who own their home are planning to sell up and move to a less expensive property in their later years, according to Prudential.

And while convenience was found to be the main reason for moving, a significant proportion of people are relying on downsizing as a key part of their retirement plans. One in seven (13 per cent) of those expecting to downsize said they could not afford to retire otherwise.

Prudential’s survey of more than 1,000 people suggests that home owners in Northern Ireland and the East of England are particularly likely to expect to downsize their property, while those living in London, Scotland and the West Midlands are the least likely to sell up and move somewhere smaller.

Those planning to move to a cheaper property expect to free up around £112,000 in equity on average by downsizing. One in nine (11 per cent) believe they will make more than £200,000 by downsizing. Of those who expect to raise money from downsizing, 60 per cent will use it to boost their retirement funds and improve their standard of living. Nearly half (47 per cent) will use the cash for travelling more, while (13 per cent) want to release equity to help their children buy a house and 14 per cent plan to simply give the cash to their children.

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