Nomadic retirement warning as living costs rise

More than one in ten retirees are forced to move home more than once during their retirement, according to research from Saga.

The home insurer is warning the rising cost of living is forcing retirees to adopt a virtually 'nomadic' existence as living costs continue to rise.

In a report mapping and analysing retirement trends in the UK the organisation finds the potential joys of retirement are often short-lived as people are forced to move home or downsize in order to achieve living costs in line with their new income.

Specifically, the Saga study results revealed 31 per cent of all retired people have moved area at least once since they stopped working.

This is in contrast to less than one in ten (eight per cent) of people facing retirement who are definitely intending to move.

The contrast indicates that dreams of a settled retirement are soon thwarted as retired people face the reality of soaring living costs, as well as the fact that they haven't fully prepared for the change in their income post retirement.

"Retirement should be an opportunity for people to enjoy pursuits that they have dreamt of throughout their working life, but had little time to fulfil," said Andrew Goodsell, chief executive of Saga.

"It is a worrying trend that these aspirations of a settled retirement are being ruined by the need to downsize."

Prior to retirement, only 20 per cent of people were looking for a cheaper cost of living from their retirement destination. However, when they stop working, priorities change.

Among those yet to finish work, peace and quiet (45 per cent), good shopping facilities (37 per cent), a friendly neighbourhood (36 per cent) and good healthcare facilities (29 per cent) top the list of requirements when deciding where to live once they stop working.

However, on retirement these dreams change, with the top reason for moving being replaced with the need to downsize.

Some 35 per cent of retired people have moved in retirement when they had not intended to in order to own a smaller property.