Smart Ways to Boost Your Finances in Retirement.
As we age, our homes can be much more than just a place to rest our heads – they can be valuable assets that help boost our financial security. Whether it’s enhancing a pension pot, funding world travel, or preparing for future care costs, your property can play a key role in your financial strategy.
Let’s explore the different ways to generate income from your home, with options tailored for raising substantial, moderate, or smaller amounts of money, depending on your needs.
I Need a Lot of Money
- Downsizing
Moving to a smaller, more affordable home can provide a substantial cash influx, especially if you’re moving out of a family-sized property. Downsizing may not only lower your maintenance costs but, with the latest government stamp duty changes, make the transition easier and more cost-effective. - Equity Release
If you prefer to stay in your home, equity release lets you access some of your home’s value without selling. Essentially a loan against your home, it’s repaid once you pass away or enter long-term care. Equity release is popular for supporting one’s financial needs in retirement or offering an early inheritance to loved ones, though it’s crucial to understand that it reduces the property’s remaining value for your heirs.
I Need to Raise a Moderate Amount
- Take in a Lodger
If you have a spare room, consider renting it out. Under the Rent a Room Scheme, you can earn up to £7,500 per year tax-free, making it a practical way to generate extra income without major lifestyle changes. - Rent Out the Entire Property
If you’re away for an extended period, platforms like Airbnb allow you to rent out your entire home to travelers, which can be especially lucrative near tourist areas. Just be sure to check with your insurer and lender first, as this may affect your home insurance and mortgage.
I Need a Small Amount of Money
- Rent Out Your Attic or Spare Storage Space
Platforms like Storemates.co.uk let you rent out storage areas in your home, such as the attic, to neighbors who need extra space. This simple arrangement doesn’t require much effort and can bring in a small but steady income stream. - Put Your Driveway to Use
If you live near a train station, sports arena, or entertainment venue, renting out your driveway can be a convenient way to earn additional income. Many people earn hundreds or even thousands per year by offering parking spaces to commuters or event-goers.