How to supplement your retirement income

You might be on a fixed retirement income, but there are other ways that you can supplement your finances in retirement.

Whatever you choose, remember that effective budgeting is always important. Managing your money well won’t necessarily get you more income, but it'll help make funds available for the things you need/want.

With that in mind, here are just some of the options you have for getting more money in retirement. Remember, these could affect any means tested benefits you claim.

Claiming the benefits and allowances that you’re entitled to

If you’re a UK resident and at retirement age, there are a raft of benefits and allowances that you may be entitled to. These range from help with heating costs, and free travel on buses to health and disability allowances for those who are less physically able.

Tracking down missing pensions

Check for a lost pension, a missed benefit, or any other potential sources of income which you may be entitled to.

Borrow money against the value of your home with a Lifetime Mortgage

Equity release products allow you to either borrow against or sell part of your home. The most popular type of equity release is a Lifetime Mortgage, which is a loan secured against your home. It's tax-free and you won't have to move. However, there may be cheaper ways to borrow money.

Borrow money against the value of your home with a Retirement Interest Only (RIO) Mortgage

A retirement interest-only mortgage is a type of residential mortgage that allows you to take out a loan based on the value of your home. It's tax-free and you won't have to move. As a last resort, your home may be repossessed if you don't keep up payments.

Downsizing your home

If you own your home, you could consider selling it and downsizing to release some additional funds. Downsizing is where you buy a less expensive home. After paying moving costs and stamp duty, there could be money left over which will be yours to use as you wish.

Renting out your property

For many people, their home is their biggest asset and there are ways in which it could work harder for you. From renting out a room, a car parking space or the whole property, using your home to help supplement your finances in retirement has a number of attractions.

Delaying your retirement

Much has changed in recent years, including the requirement for you to stop working when you reach a certain age. More and more people are now delaying their retirement, and that can mean deferring their State Pension.

Working in retirement

More than a million of us now work past the state retirement age. Working past State Retirement Age not only means deferring the State Pension, it can also mean additional income from paid employment and provide extra income whilst you get used to being on a reduced or fixed income.

Next steps

It’s worth thinking about your plans for the future, and taking time to look at your options in detail. We don’t help customers downsize, or take out buy to let, but we may be able to help in other areas:

627470885