Retirees share 'life-changing' move that helped them cut their bills and supplement their pension pots

"The cost-of-living crisis was pushing our rent up, and the upkeep was just getting too much," Paul explains. His long Covid symptoms made managing the large property increasingly challenging.

The couple discovered a one-bedroom flat at Hometor House through My Future Living, a retirement rental specialist, a retirement development in Exmouth -a dream location for Lindsey. The move has "transformed their lifestyle".

Their new home has delivered significant savings.

"The flat is much cheaper to run," says Paul. "It's well insulated, so our energy bills are lower, and even our car insurance dropped thanks to the secure gated parking."

Their experience reflects a broader national pattern. Recent research reveals that 78 per cent of Generation X Britons aged 45 to 60 intend to sell their properties and move to smaller homes to access equity for retirement funding.

This represents a significantly higher proportion than the 59 per cent average across all age groups, according to findings from annuity comparison service Annuity Ready. More than a quarter of UK residents now plan to tap into their property value to support their retirement years.

"We're seeing a generation of people leaning on their home as a backup to their pension pot," said Sarah Lloyd, commercial director at Annuity Ready.

"Some may be using it as the main source of income in retirement, while others are using it to supplement their existing pension pots as the overall cost of living continues to rise."

Their rental arrangement offers long-term stability through an assured lifetime tenancy, with rent adjustments tied to the Retail Price Index. This predictability has eliminated financial uncertainty.

"Lindsey used to worry about rent rises," Paul adds. "Now we know exactly what to expect and that peace of mind is priceless."

My Future Living focuses on providing retirement accommodation that reduces living costs whilst enhancing residents' lifestyles. Properties feature improved insulation and secure facilities, resulting in lower utility expenses and reduced insurance premiums.

"At My Future Living, we're seeing more and more people choosing to downsize and rent in later life," says Joanne Couch, Director of Finance and Operations. "It's not just about money it's about making life easier and more enjoyable."

The trend extends beyond property sales. Hamptons forecasts that English households aged 65 and above who rent will surge from roughly 400,000 currently to more than one million by 2033.

This shift towards rental retirement living offers practical advantages. Paul and Lindsey's new community provides regular social activities including tea gatherings, bingo evenings and organised excursions.

"There's always something going on," says Paul. "And with less cleaning and gardening to do, we've got more time for walks, fishing, and using my electric bike."

However, not everyone can access property wealth. ONS data shows those aged 45 to 60 are three times more likely to rent than two decades ago, with some never achieving homeownership.

Despite the advantages, relocating from a family home presents significant hurdles. Estate agents Savills acknowledge the emotional strain of leaving a property filled with memories, alongside the financial costs and stress of moving.

"Downsizing might work for some, but it comes with financial, logistical and even emotional challenges," said Lloyd.

James Daley, managing director at consumer group Fairer Finance, identifies systemic barriers preventing housing from becoming integral to retirement planning. He highlights the shortage of appropriate retirement accommodation and regulatory obstacles in accessing equity release options.

"If we're to head off a later life funding crisis, policymakers need to start taking action to bring down these barriers now," Daley said.

Paul remains enthusiastic about their decision. "It's worked brilliantly for us," he concludes. "I would say to anyone, don't be afraid to downsize."