Owning a home has long been seen as a sign of financial security. But as more South Africans approach retirement, a new question is emerging: is the family home still the right fit for the life they want to live?
New insights from FNB Home and Structured Lending suggest that older homeowners are rethinking their property choices. Instead of moving into bigger homes, many are choosing to downsize or “rightsize” to make retirement more affordable, convenient and manageable.
The findings draw on South African property transaction trends and customer data from 2015 to 2025. They reveal how changing priorities are influencing the decisions of retirees and those preparing to leave the workforce.
More Older Buyers Are Entering the Property Market
Despite a decline in overall buyer activity over the past decade, older South Africans remain active in the property market.
FNB’s data shows that buyers aged 56 and older accounted for 19% of property buyers in 2025, up from 14% in 2015.
Repeat buyers are also playing a bigger role. They now make up 70% of senior buyers, compared with 56% a decade ago.
Vanashree Naidoo, Product Head of Home and Structured Lending at FNB, says retirement planning is prompting homeowners to reconsider whether their current property still meets their needs.
Today’s retirees are living longer and remaining active for longer. Many are also placing greater value on convenience, affordability and lifestyle.
As a result, the family home is increasingly being assessed not only as an asset, but also as a place that must support changing needs and retirement goals.
Downsizing Is Becoming More Common
One of the clearest trends in FNB’s findings is the growing preference for smaller homes.
Among senior homeowners who sold one property and later bought another, the proportion who chose a smaller home increased from 54% in 2015 to 62% in 2025.
Age also plays a role. The tendency to downsize rose from 50% among homeowners aged 55 to 59 to 71% among those aged 80 and older.
The shift is not only about property size. It also reflects changing preferences for homes that are easier to manage.
FNB’s analysis found that the share of freehold properties purchased exclusively by seniors fell from 75% to 66% over the period studied. This points to growing interest in sectional-title properties.
These developments can offer benefits such as enhanced security, reduced maintenance responsibilities and lock-up-and-go convenience.
Naidoo says rightsizing does not have to mean compromising on quality of life. Instead, it can mean choosing a home that better supports the retirement someone wants.
For some, that could mean spending less time maintaining a large property. For others, it may mean lower ongoing costs, improved security or living closer to family, healthcare facilities and essential services.
Retirement Does Not Always Mean Being Debt-Free
While many older homeowners purchase property without a home loan, FNB’s findings highlight another important consideration: retirement does not automatically eliminate mortgage debt.
Although fewer retirees have active home loans today than a decade ago, the average and median balances among those who still have mortgage debt have increased.
This makes careful financial planning particularly important when considering a property move.
Naidoo advises homeowners to assess their property decisions within the wider context of their retirement plans. This includes understanding the equity built up in their homes, the costs of buying and selling, future affordability and how their housing needs could change over time.
A property may represent a significant part of a person’s wealth. However, the decision to sell or buy should account for more than the property’s market value alone.
Location Still Matters
Where retirees choose to live remains another important part of the decision.
FNB’s data shows that the Western Cape attracted the highest number of senior property purchasers during the period analysed. It also retained the majority of senior homeowners who sold and bought another property within the province.
However, the right location will depend on individual circumstances and priorities.
Convenience, accessibility, community, access to healthcare and long-term affordability are among the factors that can shape where people choose to live during retirement.
For some homeowners, staying in a familiar neighbourhood may be the best option. Others may prefer a smaller property or a location closer to family and essential services.
Planning Ahead Can Make the Difference
Deciding whether to stay, move, downsize or rightsize is a personal choice. But FNB’s findings highlight the value of considering these questions before retirement arrives.
Homeowners need to look beyond the emotional value of their properties and consider whether their homes will continue to support their lifestyle and financial goals.
That means weighing up the benefits of staying against the costs and practical considerations of moving. It also means thinking about future mobility, maintenance, security and access to services.
Naidoo says retirement offers an opportunity to reassess priorities and make sure a home continues to support the life its owner wants to lead.
With careful planning, homeowners can make property decisions that better reflect their changing needs, financial circumstances and long-term goals.
Ultimately, retirement security is not simply about owning a home. It is also about ensuring that the home remains the right fit for the years ahead.
