More than a million pensioners plan to generate cash by downsizing in the next five years, new research suggests.
A survey carried out by retirement income specialist MGM Advantage shows that 12% of retired people in the UK say they intend to sell their current home and move to a smaller, cheaper property in the near future in order to boost their pension incomes.
MGM said this could unlock as much as £1.35 billion in housing equity, with the typical amount of cash released by downsizing from a detached house to a bungalow estimated to be just over £100,000.
But spokesman Andrew Tully said that the potential rewards of downsizing varied greatly across the country.
"People often refer to their property as their pension, and these numbers show that many are considering downsizing to provide an income boost in retirement," he said.
"However, the downsizing dream could turn into a retirement nightmare, as some areas of the country fare much better than others. This is simply a reflection of the housing market in the UK."
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