1,500 people were surveyed, looking to downsize from an average property value of £310,000 (detached) to £197,000 (semi-detached). By using the proceeds of the sale to purchase an annuity, this would make an annual income of £13,700 including state pension. Given that the average annual wage for a full time UK worker is £27,400, there would be a sizable slump in standard of living.
According to Baring Asset Management, up to 3 million people are planning to use this approach to fund their retirement. There are also barriers to downsizing which homeowners should consider, such as a low supply of housing to move into, and also older children who are not ready to move out yet.