If you’re on the verge of retirement and still struggling to see your options, you may have found yourself in a pickle especially if you have contributed the bare minimum to various RRSP’s during your lifetime. However, don’t let your anxieties get the better of you; here are a few ways in which you can help save money during your retirement:
- Selling your house before your retirement can save you a heap of money and is beneficial should you find yourself next to broke approaching the time of your superannuation however this option only works if you’re willing to downsize your property. By this I mean investing in something slightly less expensive that will still provide you with comfort and all the necessities you need for a relaxed retirement.
Say you sold your home for £500,000, the most appropriate option is to purchase a home within the £200,000-£300,000 region leaving at least £200,000 spare to invest in something that generates an income such as a fixed term annuity.
- Once you have downsized your home, it is time to shop around for an annuity. It is crucial that you compare the best pension annuity rates in the UK before you go on to choose the most reliable and best rate pension provider. Not many soon-to-be retirees realise that shopping around can not only save you money but also significantly increase your income to provide you will a more secure life during retirement.
- In the case that annuity rates are low, perhaps consider developing a source of passive income to assist you during your retirement. Those with greater expertise are likely to look at purchasing a rental property to aid them in the rental process however it’s just as easy to transform one of the spare rooms into a guest room for your residents to stay.
These are just a few ways that you can prepare yourself for a comfy retirement in the event that you are a little stripped for cash. For more advice on how to enhance your annuity, speak to a specialist annuity advisor today and see what you can save.