When you retire or approaching retirement, your income may reduce and you may start feeling the effects of a reduced income. However, don’t worry a lot. You are not alone. In fact, 1/3 of people aged 65 years live on less than the minimum wage with 1 in 20 of them unable to afford birthday or Christmas presents for their loved ones. If you need money now bad credit day loans are available for such situations.
Apart from reduced income, pension reforms, low-interest rates on savings, and mortgage plans that are interest-only will soon end as you approach retirement. Maintaining a standard of living we expected to enjoy in our twilight years is difficult for most of us. The good news is that there are many ways to boost your retirement incomes. That said, here are some tips to help you generate large disposable income during your retirement:
Consider Downsizing
If you have been living in a certain house for many years, then it is likely that it is worth more than what you invested before. When you move to a different location or a smaller home, you will get a cash lump sum that will boost your retirement finances.
However, ensure that you consider moving expenses which may include: estate agent fees, solicitors fees, removals, stamp duty, and the cost of redecorating and making repairs to the house you are moving to.
Equity Release
Sometimes, selling your family home may be difficult. In such cases, unlocking a cash lump that is tax-free from your housing wealth with an equity release may be something worth considering. The good thing about an equity release plan is that it has flexible plans that enable you to make a one-off or interest payments on a regular basis if you wish instead of monthly payouts. Equity release will reduce the value of your estate and the inheritance amount that you will leave. This instant-result calculator will help you know how much you can unlock.
Consider Switching Mortgages
Older homeowners and those people in retirement can get flexible mortgage products as many flexible new mortgage products that target them are on offer. Do you have a few years left in your current mortgage? Or stuck paying your mortgage lender’s unpredictable Standard Variable Rate? If the answer is a yes, it may be a good idea to consider switching mortgages.
This is because doing so can help you get a better deal that will help you save thousands.. So, go there if you are looking for the best mortgage products. If you choose to re-mortgage, you need to know that you will have to pay a charge to your current lender.
Savings/Investments
Most of the people in or approaching retirement have some form of investments or savings for a rainy day. Saving money or investing can boost your retirement income. Unfortunately, you will not have the advantage of the said safety net during emergencies like buying a new car or a new boiler.
Consider Taking on A Part-time Job
A part-time job during your retirement can boost your retirement finances and help you maintain an active and more structured schedule that you may have been used to over your career years. Apart from boosting your retirement finances and helping you maintain an active and more structured schedule, taking on a part-time job provides opportunities for social interaction.
Rent Out a Spare Room in Your House
Does your home have an extra room that is not occupied? If so, rent it out to boost your retirement income. You can rent it out to international students over the short summer period. If you have a holiday house, then it is a good idea to consider letting it out to earn some money even if it just for your family or friends.