Comfortable retirement for pensioner homeowners

According to a recent article in LoveMoney.com, millions of UK pensioners can tap into the goldmine that is their homeownership. These people could have a far more comfortable retirement than they do if they are willing to make the move to a smaller property.

This is especially relevant news in the light of the recent political agenda that has been at the forefront of the news during the past weeks. The highlights of such news revolved around building up a personal pension and savings safety net to supplement whatever the government is willing to part with.

The article cites research from Key Retirement Solutions, which found that retired homeowners in the UK who have completed their mortgage payments collectively own property that is worth £765.18 billion.

Although this wealth is not evenly distributed, most homes that are owned outright can provide their owners with a tidy sum of money if they are inclined to access it. With the current State Pension being what it is, this is perhaps an option that pensioners should consider.

According to the article, the most sensible advice is to move to smaller property. The money from the sale of the owned property can then be used to buy the smaller home and save for retirement living costs.

Furthermore, property that has been bought decades ago and paid in full has probably increased significantly in value. Hence it can be seen as an investment that is now ready to pay out.

The article however also warns owners to carefully consider additional costs such as solicitor’s fees and other costs associated with moving. Before therefore making a sale and calculating the profit, homeowners should first investigate the exact fees that will be needed.

Nevertheless, the remaining sum should be considerable, allowing the homeowner to retire in considerable comfort.

What's this?