Many of us struggle with various money worries throughout our lives. They strike us when we’re in our twenties, fresh out of university with fewer career prospects than we’d hoped and mountains of student debt. They strike us when we’re in our thirties and we’re trying to figure out if we should stop renting and start looking into buying property. But for those of us in their late fifties, the worries seem much more severe.
These are the years that we are supposed to be winding down. Our finances, we were told by various parties, should have been secure enough by now. But with retirement seemingly round the corner, it seems like it might be too late to turn things around.
So you may not be financially ready for retirement. But are you really as close to retirement as you think? If you’re around the age of 55, then you’ve got up to a decade until retirement age if you’re in the United Kingdom. That might not sound like a lot of time, but you’re going to have plenty of saving opportunities in that time.
You should also be considering the fact that, in the UK at least, there is no longer an age of forced retirement. It used to be 65, but you can work past this age if you really need to. Of course, this isn’t the ideal situation for everyone. We want to be off of our feet as soon as we can. But it might be best not to shut yourself out of work if you’re not quite ready yet.
For many people, the financial solution they’re looking for might be right at their feet. People don’t always realise how much money they’re able to get their hands on just by using the assets they already own. Of course, if you own the property in which you live, then you may already have thought about selling in order to fund your retirement.
But selling your home isn’t always the ideal solution, of course. It may be a great solution for people if you’re looking to move to a new property, and this is often recommended. After all, luxury park homes are much more suitable for retirees than standard urban homes. But if you’re reluctant to sell, that’s understandable. But is it impossible to get the money that’s tied up to your assets? Not exactly. You can look into equity release, which will help you release some of the value of your property.
Retirement is something to look forward to while you are working, but when retirement is upon you it may suddenly seem difficult because you are no longer earning the same income you used to have. Taking out a loan on your home can give you extra money temporarily, but a reverse-loan may be more beneficial. If you agree to stay in your home for the duration of the loan, a reverse mortgage lender can provide you with ongoing money taken out of your home equity with no need to pay any of it back right away. The special loan only available to retirees 62 or older is meant to allow you to pay for all of your retirement expenses without the risks associated with traditional mortgage agreements.
If the source of your problem is debt, then you need to be looking into a good solution right away. People often find themselves lingering in debt for too long. While the payments don’t seem to suck away at their finances that badly, they do have damaging long-term effects. High-interest rates severely affect your ability to save. Having that debt too long is also going to affect your credit rating.
Aside from that, you should look into reducing your living expenses. Downsize if you have to – it’s not as bad as people make it out to be! Make sure you revise your monthly statements and cancel any unnecessary outgoing payments.