The useful question is net proceeds
A home might be worth a large amount, but downsizing only helps the retirement plan if it releases usable money after buying the next property and paying costs. The figure to model is net proceeds, not the full house value.
Trade-offs to consider
- Moving costs, legal costs and stamp duty where relevant.
- Whether the new home genuinely costs less to run.
- Distance from family, transport, care and social networks.
- Whether the move is realistic at the age assumed.
How RetirementInSight models downsizing
The calculator uses a simple future inflow: an age and an estimated net amount released. It does not model property-price growth, selling costs in detail, stamp duty bands or care needs. That makes the input easier, but it means the number should be conservative and reviewed.
A fictional example
A couple expects to sell a £650,000 home at 72 and buy for £500,000. After costs, they estimate £120,000 of usable proceeds. The retirement projection should use the £120,000 net amount, not the £650,000 home value or the £150,000 headline difference.
Related reading
Sources and last reviewed
Page reviewed 2026-08-21. Source links below show when each reference was last checked.
- Retirement Living Standards 2026 update (Pensions UK / Retirement Living Standards, last checked 2026-08-18)
- Income Tax rates and Personal Allowances (GOV.UK / HMRC, last checked 2026-08-19)