For generations, homeownership has been a key measure of financial security. Yet for many South Africans entering retirement, the question is no longer whether they own a home, but whether that asset is helping them maintain the lifestyle and financial freedom they envision for their retirement years.

The latest insights from FNB Home and Structured Lending, drawing on South African property transaction trends and customer data between 2015 and 2025, highlight a notable shift in how older homeowners are taking a more deliberate approach to their housing needs as they prepare for retirement. Rather than focusing on larger properties, many retirees and pre-retirees are rightsizing their homes to unlock greater convenience, financial flexibility and a lifestyle better suited to their evolving needs.

While overall buyer activity has declined over the past decade, older buyers have remained active in the property market. The proportion of property buyers aged 56 and older increased from 14% in 2015 to 19% in 2025, while repeat buyers now make up 70% of senior buyers, up from 56% a decade ago.

Vanashree Naidoo, Product Head of Home and Structured Lending at FNB, says retirement planning is increasingly prompting homeowners to reassess whether their current property is still the right fit for their next life stage.

Today’s South African retirees are entering a new phase of life with different priorities to previous generations. They are living longer, remaining active for longer, and placing greater emphasis on convenience, affordability and lifestyle. As a result, more homeowners are reassessing whether their current home is still aligned to their future needs and retirement goals.

Rightsizing is becoming part of the retirement journey

FNB’s analysis shows that among seniors who sold a property and later purchased another, the proportion choosing a smaller home increased from 54% in 2015 to 62% in 2025. The tendency to downsize becomes even more pronounced with age, rising from 50% among those aged 55 to 59 to 71% among homeowners aged 80 and older.

At the same time, there has been a noticeable shift towards more manageable property types. The proportion of freehold properties purchased exclusively by seniors declined from 75% to 66% over the period analysed, reflecting growing interest in sectional-title developments that often offer enhanced security, lower maintenance requirements and lock-up-and-go convenience.

“Rightsizing doesn’t necessarily mean settling for less,” adds Naidoo. “For many retirees, it’s about finding a home that better aligns with the lifestyle they want to enjoy in their golden years. That could mean less time spent maintaining a large property, lower ongoing costs, improved security or being closer to family, healthcare facilities and essential amenities.”

The bank’s insights further reveal that while many seniors purchase property without a home loan, retirement does not automatically mean being debt-free. Although fewer retirees have active home loans today than a decade ago, the average and median balances of those who still carry mortgage debt have increased.

Naidoo highlights the importance of evaluating property decisions within the broader context of retirement planning. “Your property can play a significant role in shaping your financial future. Before deciding whether to move, homeowners should understand how much equity they have built up, the costs associated with buying and selling, their future affordability and how their housing needs may evolve over time.”

Finding the right location remains a key consideration

The data also shows that finding the right property in the right location remains a key consideration for many retirees. The Western Cape attracted the highest number of senior property purchasers during the period analysed, while also retaining the majority of senior homeowners who sold and repurchased within the province.

While lifestyle preferences differ from person to person, the findings suggest that retirees are placing greater emphasis on factors such as convenience, accessibility, community, healthcare access and long-term affordability when choosing where to live.

For homeowners nearing retirement, the decision to stay, move, downsize, or rightsize is ultimately a personal one. However, FNB believes the most effective property decisions are those made proactively, with careful consideration given to both lifestyle aspirations and long-term financial objectives.

“Retirement presents an opportunity to reassess what matters most and ensure that your home continues to support the life you want to lead. Whether that means remaining in your current property, downsizing or rightsizing, the key is to make a decision that aligns with your lifestyle needs, financial goals and future priorities. By planning ahead, homeowners can position themselves to enjoy greater comfort, financial flexibility, and peace of mind throughout retirement,” concludes Naidoo.