A modern retirement property will also often be better insulated and so have lower energy costs than a traditional family home. Maintenance costs will also be lower. In addition, retirement properties will usually be in a lower council tax band.
Of course, most retirement properties will come with a service charge so those looking to move into such a property should be clear on how much it is and what it covers. For example, most service charges will include building and grounds maintenance but not the maintenance of the interior of your own apartment.
In my experience, once you have taken into account the cost of running your old home and the potential cost of funding the additional services you would need to manage there, the service charge will often represent very good value for money. Do your own sums though to make sure you understand what you are going to pay and what you will receive in return. Once you have a care need, there is also a non-means-tested and tax-free benefit called Attendance Allowance available to help you meet the additional cost of supporting yourself, which includes paying your service charge.
In properties that follow the extra-care model the service charge may also cover the cost of some services in your own home such as cleaning, laundry or personal care.
In addition, if your savings fall below a certain level, councils have to help you out with care costs should you need extra help. When calculating your contribution, the current rules says councils must exclude the value of any property that you or your spouse are living in. This means that while you or your spouse live in your extra-care property, the value of that property is protected and can ultimately be passed onto your heirs.
Of course, people are always reluctant to leave the home they raised their families in and where they shared happy memories, but the financial prize for downsizing is potentially a big one, allowing people to maintain their independence and keep control over their own lives for longer. Of course, conducting thorough research is important but doing it all in good time, ahead of retirement, can help you make the best decision for you and your family in the long term.