Financial security is important during retirement. You want to be able to relax and live comfortably while having enough money saved for any unforeseen costs. However, if you don’t have significant savings this can be difficult. Below, we explore what you can do if you’re retiring without a lot of savings.
Working part-time
One option is to work part-time orsell small goods to help you ease into retirement. Ideally, a part-time role will be something that isn’t too taxing: you could work in a quiet shop or continue your career in a much more scaled-down format. Alternatively, you could start a side hustle during retirement. You could make and sell small arts and crafts, or you could sell jams and preservatives at nearby markets. By adding another income source during retirement, you can make it easier to retire without savings.
Equity release mortgage
Anotheroption is an equity release mortgage. Typically, this style of loan is preferred by older homeowners. Essentially, the method works by converting the value of your home into money that is not taxed. The loan is issued against the equity of your home, however, you are still able to remain the owner of the property. You can even bypass payments within your lifetime as the loan can be cleared after property owners have passed away and the house is sold. Equity release mortgages are a resourceful solution that can provide a substantial amount of funds while allowing you to live within your means and retain possession of your property.
Downsizing your lifestyle
Downsizing your lifestyle is another option you could explore. You can begin this process by moving into a smaller, more manageable home and using the profit to fund your retirement. Alternatively, you can make lifestyle changes to save money. If you’re used to going on plenty of holidays throughout the year, you could cut this down to just special trips. Ultimately, it’s a case of cutting down on luxuries while retaining an enjoyable lifestyle.
Get a roommate
Another option if you don’t have significant savings, is to get a roommate. By bringing in a lodger, you can pick up rent each month to help you fund your retirement. This is particularly useful as a source of sustainable income. Just ensure that you carefully select your roommate. Ideally, you’ll want to live with someone you can get on with and feel safe in their presence. Some meetings before signing a rent agreement can help you with this process.
Retirement can be difficult without savings. But there are still ways for you to enjoy a comfortable retirement. By following the advice above, you can boost your savings and remove any stress about money now that you’ve reached the end of your career.
