Whenever the idea of retirement comes up, we usually think of free and relaxed time with family, holidaying, and staying back at home free from any burden or stress. You might be one of those thriving in this new phase of your life with lots of excitement; no longer having to face the hectic busy schedules of everyday routine. Just being happy and content making the most of your precious free time through hobbies and recreational activities.
However, to be very honest, it’s not the case with everyone. Not everyone can be as lucky as having an eventful relaxing retirement life free from worries. For some individuals, they have to work even after hitting the retirement age. It could be because of several reasons like some urgency in family, additional responsibilities or some financial liabilities. And to earn some extra money, people simply continue working after attaining retirement.
But after reaching the retirement age not everyone has the physical strength and ability which would allow them to work. When you are young you can take risks but after reaching a certain age you don’t have the same zeal and enthusiasm. It can become very difficult to find a job that meets both the requirements and lifestyle. With such challenges posing as an obstacle, here are a few basic ways to earn a little extra cash to meet your needs and requirements.
You can use the space you own
One way to earn some extra cash is to rent out part of the accommodation you own on a daily, weekly or monthly rental basis. It can help you earn some extra cash and you can rent it the way you like. Be it your property or your parking space, you can rent your space accordingly. People often rent out parking lots to meet their needs and it is not a bad option at all. See what best suits you.
You can readily take advantage of short term renting. You can take a call on how much you want to charge and for how much duration you would like to rent out. If you also go by the AirBnB business model and you tie-up with them then such companies may even charge a small fee or commission from your earnings. Airbnb has a great user base and you would never be short of customers who would be readily available.
- There are still a few ways to earn. If you own something which you don’t require anymore you can resell making up free space be it your car, or anything unwanted.
Apart from this option, if you are not comfortable renting out a property then there are other options as well. Many retired personnel believe that as the cost of living increases, pensions and saving rates often fail to provide the security and returns that they should meet as per the growing expenses. Many retirees often contact consultancies to know how they can raise sufficient funds to meet their requirements.
We have always advised our clients that equity release is one such viable way to raise the funds and meet your needs if you are not comfortable with other means of making earnings. Of course, we truly believe equity release can help you in a big way but this deal requires a lot of commitment which is not of short duration like renting. It is a lifetime commitment, and cannot be taken lightly.
How can equity release help retirees?
Equity release for retirees is one of the ways to provide additional income. It opens up new opportunities as it provides a lump sum cash. For some retirees, it turns to be a better investment as it generates interest less than the credit cards. Once you have got your equity release for your retirement, there are ways whereby you can make use of it. Here are just a few examples:
- It provides you with the ability to spend more and hence you can increase and improve your quality of living.
- Enjoy the retirement phase without having to sell your property.
- Worry less: Now you can pay off urgent expenses or debts for your kid’s schooling or college.
- Pay off your outstanding debts like your mortgages or bills.
- Help your family in need.
- Fund your renovations or new upcoming pursuits.
- Enjoy your life the way you want without worrying much.
These are just a few ways of making use of your equity release there are other ways also whereby you can use it. Of course, you can use it as per your urgent needs ad priority.
Benefits of retirement equity release
We would like to highlight a few benefits which retirement equity release brings to you. You will notice though equity release is a lifetime commitment with the benefits it offers it will surely attract you.
- Equity release schemes do not require repayments, you can access it very easily in comparison to other alternatives. You don’t have to pay anything per month. It’s as simple as that.
- You can choose to withdraw only what you require at the moment – you can hence only pay interest on what you’ve drawn out from your cash. You won’t have to pay interest on the entire amount.
- It comes tax-free. Isn’t interesting? You don’t have to pay taxes. So relax and enjoy.
- You don’t have to make any repayments unless you want to.
- Your property remains yours. This is interesting. You can stay in your property as long as you need it. Your property would be sold only when you would like to pass it on. What else do you need? This is a great option.
- You can control how much you want to pass it on to your heirs. There is another benefit ‘no negative equity guarantee’- it will ensure that your heir never inherits any debts from your home. So you can be assured your family will not suffer from any ongoing debts in the future.
Apart from the benefits that your equity release will incur you in the long run from your property, we would advise you to go through it in detail before signing it across with your equity release company. When you get funding through equity release there is also the interest that it accompanies. Though there is no danger of losing your property as long as you need it to cost can compound on it and it can go on & one. So be careful with it. Read everything carefully.
- We continue to get several queries from our clients if equity release affects pensions. Our answer is No. It will not affect your pension as the pensions you incur from your State is not a benefit. You can be relaxed concerning that.
- Also if you take retirement equity release, you won’t have to leave and step out of your property. The responsible lenders, guarantee you the ‘right to stay’ in your home for as long as you need the house – the property you own will be sold only when you die or move into care.
Hence, with retirement equity release you don’t have to risk losing your property. If you want to find out how much equity you will be able to release and you need clarity on that then you can check the same on our equity release calculator. Learn more by visiting our equity release calculator
Our free equity release calculator or Mortgage equity calculator will give you the desired results within seconds and would let you compare the many UK equity release schemes. You would also be offered different advice and plans so that you can make the right decision for your retirement. You will also get a guide which is free so you can read through some of the options which come to you with Equity Release in UK. All our advisers we introduce you to are regulated by the Financial Conduct Authority (FCA) which means that you can be sure that you are being advised by professionals who are experienced, trained and licensed professionals to offer you advice. We have access to hundreds of experienced specialist advisers.
For more details on how equity release works you can either speak to our representatives in detail as it is very important to understand the terms and policies with a thorough check. Just contact one of our advisors. They’ll help you find out more about equity release in retirement and if it’s the right choice for you. If you have any queries or concerns and need a better understanding of how it will work for you then speak to our experts for the right kind of advice.
You can now simply sit back, relax, enjoy and let us do all the hard work on your behalf in finding the right equity release based on your ongoing circumstances.
So, what are you waiting for? Quickly join the club where more than a million are already enrolled / registered and see if equity release is right for you and your family.