Retirement is on the horizon and one of the first decisions you will have to make about your future is what to do with your home. Whether it’s staying put, downsizing, renting out, or selling up, there are many options available. You may also want to think about using some of the money you’ve saved in order to pay off any debts that could be draining your finances before retirement arrives. Here are a few ideas for how retirees can use their homes wisely.
Downsize and Invest The Money
One option is to downsize your home and invest the money you save. This could provide a regular income in retirement, which can be very helpful if you’re no longer receiving a salary. It’s important that you protect your retirement savings and have assets to fall back on, so investing is a great option. You could also use any spare money to travel or enjoy other hobbies in your free time.
Downsizing doesn’t have to mean moving into a tiny home either. You can still have plenty of space as long as you find somewhere cheaper than you are now.
Transfer Equity To Your Children
Another option is to transfer the equity in your home to your children. This can be a great way of helping them get on the property ladder and it can also provide a bit of security for you in retirement. You’ll need to talk to your children about this and make sure they are able to handle the responsibility, and you will also need to contact solicitors to help you with the legal side. This can be a good way to make things easier after you are gone too because everything is already in your childrens’ names.
Sell Up and Move Into Rented Housing
If you’re not too attached to your home, then selling up and moving into sheltered housing could be a good option. Many people decide to move into assisted living communities where there are plenty of other retirees and you have access to help and amenities when you need them. If you have already paid off the mortgage on the house, you will end up with a significant lump sum that is more than enough to pay your rent and leave you with enough to live on.
Consider a retirement community
The concept of retirement communities comes from the U.S.A. but seems to be becoming increasingly popular in Britain. Senior citizens can rent or buy purpose-built homes and benefit from the company of other retirees. These villages often provide a range of social activities and leisure facilities. They often also offer nursing care for the less able and a secure environment for residents with memory problems. For some it can be a premier senior living experience. I think we would all like to join the members of Richard Osman’s Thursday murder club in their village.
Stay Where You Are
There’s no reason why you can’t just stay where you are. If the house is paid off and you have enough money coming from your pension to live on, you can comfortably manage as you are. However, if you are going to choose this option, you need to make sure you crunch the numbers first. Ensure that you definitely have enough savings to live on for an extended period. You want to enjoy your retirement, and worrying about money really gets in the way of that.
There are a number of different things you can do with your home when you retire. It’s important to think about what will be best for you and your family and to make a decision that you feel comfortable with. Talk to other retirees and find out what they did – there is no one right answer, but it’s helpful to consider all of the options.
(collaborative post)