The coronavirus (COVID-19) pandemic has led to a reappraisal of urban living, with increasing numbers fleeing city confines in search of green space. Three million people aged over 50 (12%) now plan to relocate in retirement, as a direct result of the pandemic. A year of lockdowns has motivated these over-50s to want to move closer to family and friends, pursue a better quality of life or even move abroad.
In 2020, the Office for National Statistics revealed that people of retirement age in England were already leaving major urban areas and instead moving to rural areas, locations by the coast or to Areas of Outstanding Natural Beauty (AONBs). The data demonstrated that Dorset, Shropshire and Wiltshire were ‘retirement migration hotspots’, while England’s largest cities saw net outflows of retirement-age residents, with London, Birmingham and Bristol seeing the largest number of exits. Nearly a year on, the research has found that the pandemic has influenced some over-50s to plan a move after a year of lockdowns. Over-50s want to relocate to somewhere that offers a better quality of life (7%), to move close to friends and family (4%) or to live abroad (3%).
When planning a move, many over-50s consider how the value of their current home plays a role in their long-term plans. 1.3 million pre-retirees over 50 (9%) see themselves as more likely to turn to their property wealth to fund their lifestyle than before the pandemic. In instances where people are relocating, they may downsize to free up property wealth. When considering relocating to a new area, make sure your new home is as future proof as possible. It’s important to think carefully about the type of property you choose and whether it will suit you for the long term. Is it accessible or could it be easily renovated to meet your needs in the future?
Understand how a new area might impact on your living costs – consider any difference in living costs between areas and whether, overall, you are likely to spend more money, or save money, in your new location.
Relocating in retirement was already a well-observed trend, with older people reprioritising their needs as they enter the next stage of their life. As with many aspects of our lives, the challenges of the pandemic seem to have led many people to take stock of their current living situation.
There can be many benefits to relocation, whether it is a better quality of life, more space or the opportunity to be closer to loved ones.
One thing that is clear is that many people will also see their decision informed by how their property wealth factors into their long-term financial planning.
As with any big, life-changing decision, it’s important to spend time reflecting on the reason (or reasons) you want to move right now and the impact on your finances and future plans. Let us provide our insights into such a move – to discuss your requirements, please contact us.
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