There are many things to consider when it comes to getting ready for retirement. How much you’ll need, how you’ll spend your time, what age to finally retire at – although the UK Government has helped to settle this last point by deciding that the normal minimum pension age will rise to 57 in 2028.
Among these questions, there’s that of what to do with your property. It has multiple answers, each with its own benefits. In this short article, we’ll break down each option that you have to get the most out of your home for retirement.
For many of us, our home is our most expensive asset. For this reason, you may want to release money from your home using equity release.
This is a way of getting tax-free cash out of your home without needing to leave your property. You can then use this money to cover living costs, pay off any existing debts or help out loved ones.
Some areas are more desirable to live in than others. Which ones you prefer will depend on the interests and tastes that best speak to you. It’s worth exploring the best places to retire in the UK to figure outwhere you might feel more at home.
If you have no interest in leaving your home, why not renovate it? You can make it into a space that you’re more comfortable in or upgrade it with the aim of increasing its market value.
If you’re getting close to retirement and you find that your home seems too large for you to fill, youmight benefit from downsizing your property. This can reduce your living costs and give you the opportunity to move to an area that’s better suited to you.
Why not consider letting a room or section of your house to tenants? While many people are put off by the idea of letting a stranger into their home, they overlook the fact that they will have complete control over who lives with them. You can even run background and credit checks while receiving applicants.
Renting out a part of your home is a great way to create an additional income stream that you can use to cover your living costs during retirement. This will help to take the pressure off of your pension and other investments.
The bottom line
There are many ways that you can get the most out of your property as you near retirement. Consider your personal circumstances and what you want to get out of your retirement to get a better idea of which change is best for you.