Its study showed that the majority of retirees opt to remain in their home or even move to a bigger property in retirement.
Aviva highlighted that the effects of economic crisis has meant downsizing is no longer a realistic option for releasing enough cash to fund retirement, what with static house prices and the costs of moving.
In addition, Aviva noted that many retirees face increased pressure to accommodate children that remain living in the family home.
Clive Bolton, at retirement director at Aviva, said: “It seems that family pressures and needing more space in the home for individual relaxation are causing the majority of retirees to stay in the family home at retirement, rather than considering a move to a smaller house.”
Its research showed that 70% of those choosing to move to a bigger house said they needed more space because they would be spending more time at home, while 31% wanted space for themselves away from their partner and 23% needed to accommodate a larger family and regular visits.
Bolton said: “We would advise those who are nevertheless keen to release cash in order to fully enjoy their later years, to look at their full range of assets, including pensions, investments and their own property.
“Equity release is a useful option for many, allowing people to stay in their home, at the same time as turning potentially dormant capital in their property, into cash.”
Aviva’s figures reveal that the average house price for over 55s is 46% higher than the typical UK home and eight times the size of an average pension pot at £238,284.
