Its review of 25 local authorities with a high density of over-55s showed that in 32% of cases those who downsize would either be worse off or unable to release sufficient funds to make it worthwhile once costs are taken into account.
SHIP said that, while many people can downsize and remain in the same area, others could be forced to move away from their support network of families and friends.
SHIP found that those living in Torbay and North Lincolnshire could release significant equity by downsizing – £60,939 and £58,810 respectively.
By comparison, only moderate gains could be made by those in Devon (£6,361) and West Sussex (£12,544) once costs are taken into account.
Meanwhile, over-55s in Herefordshire and Poole (Dorset) could find that they make a significant loss by downsizing, of £42,949 and £39,725 respectively.
SHIP director general Andrea Rozario (pictured) said:”For many people, the home is their largest asset and releasing some of the equity will help them finance their retirement.
“The best way in which to do this depends on each individual’s financial situation and preferences.
“However, equity release and downsizing should both be considered – they are not mutually exclusive and can work very well in conjunction.”
