Ideally, once you have retired, you will have paid off your mortgage and have sufficient pension to fund a comfortable lifestyle. However, the stark truth often involves still paying a mortgage once retired, an insufficient pension fund and minimal savings.
According to recent research by The House Crowd, a crowdfunding platform, 78% of people in the UK aged 55 or over do not feel prepared for their retirement, while 41% feel that a secure retirement is not possible. More than a third (37%) believe that their lifestyle will become worse during retirement. A study produced by the Tax Incentivised Savings Association, discovered that people who were aged 50 and above faced an annual shortfall of £11,400.
A study produced by Old Mutual last year found that 30% of people aged between 50 and 75 expected to work during their retirement. Although this may be viewed as the simplest way to boost income during retirement, it may not be possible to do so, or you may just want to enjoy your retirement following years of hard work.
The home can be the solution to a financially comfortable retirement in a number of ways. You may be able to sell your home and downsize, releasing equity in the process. However, this may not be an option once you reach retirement, so shouldn’t be completely relied on. Equity release is another option, along with a lifetime mortgage. Both provide a solution, although you should take professional advice initially. Mortgage advisors study on a CeMAP course so they can offer advice, although you may need further assistance for some options.