5 Ways Retirees Can Increase Their Savings
Worried that you won’t have enough money in retirement? This is a highly common concern that people have, especially in the current economic climate, but you should know that there are always ways to boost your retirement savings that could help you to lead the kind of lifestyle that want during this important period of your life. Here are 5 practical ways to boost your retirement income.
1. Equity Release
One of the best options for retirees is to get an equity release mortgage. Essentially, this allows you to free up some of the value tied up in your home and can help to add a significant amount to your savings. Many people use equity release for home improvements, travel, gifts for family or simply to improve their standard of living in retirement. There are some important considerations with equity release, so you should always speak with an advisor first.
Another way to free up some money is to downsize. You might find that you no longer need the space that you might have and it might make sense to move to somewhere smaller, especially as you get older. This does not necessarily have to be a negative move as you might be able to find a smaller but nicer property and/or move to a more desirable area.
3. Find Part-Time or Freelance Work
Many people retire and find it hard to adapt to life without work. This is why many like to find part-time or freelance work in retirement, which can help them to adjust while also allowing them to make more money. By the time you retire, you likely have valuable skills and knowledge, so you might be able to set up your freelance consultancy as a way to make money without having to commit to employment.
4. Find Passive Income Streams
There are also ways that you can earn money passively, which is ideal if you want to enjoy a life of leisure but boost your income. A few of the best passive income streams include:
- Getting a lodger
- Buying rental property
- Renting out your car
5. Invest Wisely
Investing is another way that you can increase your retirement income, but you need to invest wisely and understand the risk. Investing in index funds is a good option as this provides diversification but also the ability to compound and grow over a long period.
These are 5 of the best ways that you can increase your savings for retirement. Many people worry that their pension will not be enough to provide the kind of lifestyle that they want to enjoy in retirement, but there are always options available to you to make more money so that you can improve your quality of life during this important part of your life.