If you are close to or approaching your retirement, then you most likely have felt the effects of reduced income. Know that you are not alone. More than one-third of people aged over 65 are living on less than minimum wage. One in two unable to afford birthday or Christmas gifts for their loved ones.
The first thing to deal with is bidding farewell to the monthly salaries. With the consistently low interest and recent pension reforms, it has become harder for the elderly to maintain the standard of life that they expected to have once they hit the retirement age.
The good thing is there are several options for boosting retirement incomes. Below are some great tips that are going to help you increase your disposable income in retiree.
If you have been living in the same home for long, there is a good chance that it is worth more today than it did when you bought it. When you choose to move to a different area or a smaller home, then you can end up with the cash you can use to improve your finances. When calculating the cost, you need to factor in the cost of the move and solicitor fees, agent fees, removals and stamp duty, repairs, and other costs associated with the new property.
If selling the home is not an option, then you can consider an equity release plan. This is a tax-free cash lump sum. There is no need to make monthly repayments and you can choose a flexible plan that gives you the option of making regular or one-off payments towards the interest if you want. When you choose this option, then keep in mind that you are going to reduce the value of your estate, which means you are going to leave less as inheritance. Find more about the plans and see whether there is one you think works best for you.
There are flexible mortgage products out there for older homeowners including those in retirement. If you have some years left on your mortgage or you have been locked in on the Standard Variable Rate offered by the lender, you may have another option. You can get a better deal and save yourself thousands of dollars if you switch. The process will involve finding a better mortgage product. If you choose to re-mortgage your home, you may have to pay the existing lender an early repayment charge.
Most people usually have some form of investments or savings when they approach retirements, and this can be used in boosting their finances. They usually do this to have a safety net for a rainy day. The downside of this is you no longer have that safety net you can use for emergencies in the future, like replacing a boiler or buying a new car. WHen faced with emergencies take a look at Loanza same day cash.
A Part-Time Job
This is not only going to help boost your finances, but it is also going to help you keep more active, have a structured routine the same way you used to have, and there is also the social interaction you are going to benefit from. Finding a part-time job is a great idea that will increase your income, while still choosing when you want to work.
Taking in Tenants
If there is a spare room, then it can be a good option to rent it out. If you are looking for a short-term option, then consider renting it out to a foreign exchange student during the summer. Do you have a holiday home? You can rent it out and get some extra cash. This is a good option even if you are going to rent it out to people you know or friends of friends.