A recent survey undertaken by Saga Home Insurance into retirement planning found that many United Kingdom residents, who had recently retired, were planning major home improvements. It’s only natural that you would want to make home improvements now that you will be spending more time in your home during your retirement.
How long are you planning to stay put in retirement?
If your plans are to stay put in your home for another twenty years you may be looking to “future-proof” it by making it as energy efficient as possible. Money invested in double or triple glazing, energy-efficient boilers etc. could save on your monthly running costs. In the longer term replacing garden steps with ramps and grab-bars to help when getting in and out of the bath need to be considered.
If you’re planning to move.
If you’re planning to move to be closer to your family or to downsize in the not too distant future, be careful about what you spend your money on. Quality extensions, a second bathroom or en-suite can all add value to your home. However, that expensive designer kitchen might be to your taste but not to your potential purchaser.
Estate agents can be a great source of information by telling you what potential purchasers are looking for in properties in your area.
How to finance these home improvements.
Here are a few of the popular options to consider-
Recent changes to pension legislation have made it easier to access your money from your pension pot if you are over 55 years old. The first 25% of the fund can usually be taken tax-free. You need to remember that you built this fund up to provide an income for you in your retirement so we would recommend that you take independent financial advice first. There is no point in having a fantastic home but you cannot afford the bills to live in it!
Equity release is sometimes referred to as a lifetime mortgage.
This is like taking a mortgage out against you home, but the loan and interest are only repaid when you sell your home, pass away or move into long-term care. This should be seen as a long-term commitment, although the plans available today provide more flexibility than they did in the past.
Above all, Anstee & Co are proud members of the Equity Release Council.
With interest rates at a historically low level investing in your property may pay dividends. You may not get any capital appreciation but you should get the enjoyment from your home improvements.
How Anstee & Co can help you in retirement planning.
We have a later-life team that specialises in finance for those near to retirement or have retired. None of the above options should be taken without some thought and financial planning. Our financial advisers offer independent financial advice. Therefore, the advice we provide is unbiased.
During the meetings, we will undertake some cash flow modelling. This will help you understand how your finances will look in retirement. We can build in holidays, home improvements and gifts to the family, all-important in retirement planning.
Why not arrange a meeting today. The initial meeting is at our cost. Meetings can be arranged at a time that is convenient for you. This may be at your home, early evening or at the weekend. Our offices are located at-
- Kettering, Northamptonshire
- Stamford, Lincolnshire
- Towcester, Northamptonshire
- London, Pall Mall, Greater London
Also, our financial planners live and make use of meeting rooms in-
- Bedford, Bedfordshire
- Market Harborough, Leicestershire
- Northampton, Wellingborough and Brackley in Northamptonshire.
Finally, the information contained in this article is for information purposes only and does not constitute advice. No action should be taken based on this information alone.