Did you know that one in three British homeowners is financially unprepared for retirement? Not only that but the average Brit is now expected to retire later than ever before. This means that many UK homeowners won’t be able to retire for up to a decade. But there’s good news, too – by planning for retirement now, you can ensure that your savings are enough to fund your old age. Time is of the essence, so let’s look at how you can start planning for retirement as a UK homeowner.
Unlock the investment in your home
It’s not uncommon for homeowners to think of their property as an investment. If you’ve ever looked at how much your home is worth and calculated how long it would take to break even on the extra monthly cost, you’ve seen the potential to make money from your home.
As you start planning for retirement, you may want to consider unlocking the investment in your home. One way is by downsizing and moving into a smaller property that will be cheaper to maintain and easier on the wallet.
This option may appeal more to those approaching retirement age; whilst it won’t make up for lost time invested in a pension, it can help ease the burden of maintaining a larger home. Suppose you are looking to downsize or even relocate. In that case, you need to make sure you have an estate agent such as Madison Fox, who understands your needs to assist you in getting the right price for your property to maximise your investment.
Locate any employee pensions you may have forgotten about
It’s not uncommon for people to forget about their employer pensions if they frequently change jobs.
But don’t let your forgetfulness catch up with you when it comes to retirement! You need to ensure that you’ve got enough money saved up in your pension so that you don’t have to worry about how you’ll pay your bills later on in life. So be sure to locate any employee pensions you may have forgotten about.
Look at lifetime ISAs.
The most important thing you can do to plan for retirement is to start saving as soon as possible. With this in mind, it might be worth looking into lifetime ISAs. Lifetime ISAs are special savings accounts designed specifically for retirement and can help you save up to £4,000 a year – that’s up to £1,000 more than normal yearly contributions. As the name suggests, these are long-term investments designed explicitly for retirement.
The only catch is you need to be 39 years old. or younger, and you can put in a maximum of £333 per month
Get solid investment advice.
The first step to successful retirement planning is getting solid investment advice. You need the right strategy in place to secure your financial future. By consulting a professional financial adviser, you can take the load off your shoulders and be sure that you’re making the right decisions. A good investment will provide you with a steady income and make it easier to retire.
