
Longevity
4 Big Opportunities with Longer Retirements
With a longer retirement you can take the time to explore your interests and hobbies. Unsure of what that may look like? Here are four opportunities you’ll have during retirement
There are other retirement tools besides income annuities and your Personal Pension that can help protect against the risk of outliving your savings. To incorporate this strategy into your retirement saving plan, consider these non-guaranteed retirement income approaches to supplement the income you’ve built for retirement.
The old retirement adage says that we should use the three-legged stool approach to prepare for retirement:
Below we focus on four additional ways you can accumulate your personal savings beyond the market or in savings accounts. While these approaches are non-guaranteed retirement strategies, they can supplement your guaranteed retirement strategies, such as your Personal Pension and income annuities.
The real estate you own can provide you with a great source of supplementary income. By the time you reach retirement, you may own a second home. If you can rent it out to a tenant, you can establish a new source of monthly income. If you don’t own a second home by then, do a careful cost-benefit analysis before deciding to purchase another home. There are complicated tax planning implications, and you have to make sure that the rental income and expenses on the house will be worth the purchase price. There’s often a lot of maintenance work and upkeep to be done on rental properties, and can be a fairly time consuming activity, which you may not want in retirement.
You may not need all the space you once did when you had a full family and the extra money it generates could be significant to your savings.
In general, managed payout funds aim for steady monthly payouts in retirement that accounts for inflation. However, there are a lot of risks that come with being in the market: they put your savings at risk, don’t provide a guaranteed income, and in a worst case scenario the fund could run out.
These mortgages allow homeowners over 62 to use their home equity as a tax-free source of funds. They can become an additional source of retirement income. You can usually borrow more if you’re older, your home is very valuable and the interest rate is low.
They do come with pitfalls though, starting with the 0.5% of loan fee that borrowers can expect to pay at closing. They also must be paid off once the last surviving borrower passes away or no longer lives in the home, if the loan is insured by the Federal Housing Administration’s Home Equity Conversion Mortgage program.
With a longer retirement you can take the time to explore your interests and hobbies. Unsure of what that may look like? Here are four opportunities you’ll have during retirement
A longevity annuity can provide you with peace of mind during retirement. While not right for everyone, find out if a longevity annuity fits your retirement needs.
You can retire easy and secure with a private pension (Personal Pension) because our Personal Pension is backed by a highly-rated insurance company that guarantees for every dollar you contribute, you will receive a certain amount of income every month starting when you retire.