Retirement can be a big life change, especially if you have worked for your entire life. Suddenly, you have a whole new lifestyle and a lot of decisions to make. You need to decide how you want to spend your retirement and what kind of lifestyle you would like to live. Some people opt to travel abroad throughout their retirement, while others settle into their life at home.
You need to fund your retirement. Most people have a pension in the UK that can support them throughout retirement. However, your pension might not be enough to fund your retirement holidays and adventures as well. You might even decide to renovate your home and make it more suitable for retirement living. Once your children have grown up, you can turn their old bedrooms into an at-home office or a gym.
Many people finish their mortgage repayments in retirement and have access to a little more money. Instead of spending the money you usually put towards the mortgage, direct the payment to your savings account instead. You can save money quickly and go on that dream holiday. Of course, this also means your home is now entirely in your possession, and you have a few options to choose from.
Sell Your Home
It might be time to downsize and sell your home. You could move to a new area and buy a property that is a little less expensive. Use the additional money to buy some new furniture and decorate your home exactly how you want it.
Stay In Your Home And Release Equity
Over 55’s can access an equity release from their home and use the funds however they please. You could use this funding to travel abroad or renovate a house room that needs some care and attention. Retirement is the perfect time for a new kitchen.
Rent Out The Home
You could live abroad for a few months and rent out your home to someone else. You can charge rent for the tenant to stay in your home and use the money to fund your travels. It can be a little strange to have someone living in your family home. However, it’s also a great opportunity to explore the world and delve deeper into different cultures.
Rent Out Space In Your Home
Larger homes are expensive to run, and you might not need all the space these days. Rent out a spare room to a tenant so you can earn some cash from your property investment. This option works well if you have a separate self-catering wing of the house—for example, a bedroom, bathroom, and small kitchen. You can rent it out to a tenant without needing to share your personal space with them.
Think about your retirement plans and how you can best utilise your home.