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I’m Retiring – Should I Sell My House?

im retiring should i sell my house featured image

In this post we’re going to break down your retirement options when it comes to selling your house.

In fact, much of this advice is exactly what we have passed on to hundreds of home owners who needed help when it came to their retirement – let’s dive right in.

Back in the 1950’s there was little difference when it came to life expectancy and the ages at which people stopped their working lives. Since then however, life expectancy has increased significantly which has resulted in more and more people investing their time & money into things like retirement planning. So the big question us should you sell your house for retirement or not?


i'm retiring should i sell my house infographic


What is Retirement Planning?


According to Investopedia, Retirement planning is the process of determining retirement income goals and the actions and decisions necessary to achieve those goals. Retirement planning includes identifying sources of income, estimating expenses, implementing a savings program and managing assets.

When your plan is complete be sure to check it thoroughly as a mistake here could put everything at risk. If it turns out you’ve calculated incorrectly and your plan won’t be able to cover all your expenses, you essentially have two options:

  1. Increase the amount of money going into your retirement plan.
  2. Reduce your overall expenditure so you meet your budget.

Now that we know what retirement planning is and what it involves, let’s take a look at some of the pro’s of con’s of selling up and moving on.


The Pro’s of Selling up & Retiring


Pro 1: If you decide to sell your property to help fund your retirement and downsize, the running and living costs of your new home will be much lower which leaves you with even more funds to enjoy your retirement with.

Pro 2: By selling up you will release all the tied up equity in your home allowing you to use the added cash injection to fund your retirement.

Pro 3: This one is not for everyone but if you sell your current house it gives you the opportunity to travel and live wherever you want – meeting new people and making friends along the way.

Pro 4: If your house has a high market value, you could potentially purchase a smaller home to live in with what remains after you have budgeted for your retirement. This is especially useful if you’d still like to own a place of your own and prefer not to rent.

As with most things, there are also downsides to selling up after you retire.


The Con’s of Selling up & Retiring


Con 1: If you have children then selling your family home could put a halt to things like family reunions, moreso if you have grand kids. In old age, many people enjoy family time more than anything else so it’s definitely something to consider before deciding to sell up.

Con 2: Selling your house and downsizing means you’re going to have less space for your personal belongings. You’ll either have to get rid of the extra stuff or find a new place to store them.

Con 3:  Not all people are comfortable with moving into a new area or meeting new people, especially the elderly as many are set in their own ways and do not like change. It’s important to consider the social impact moving into a new place may have on your life before doing so.

Con 4:  The money you receive for your home may not be enough for you to enjoy your retirement to the fullest. This is why retirement planning is so important –  the last thing you want is to sell your home and have a bad retirement experience.

It’s important for anyone who is thinking about selling up after retirement to understand both the pro’s and con’s of it so they can plan efficiently.

Let us now take a look at some tips on how to plan your retirement.


6 top tips for your retirement plan


1) Start Saving as Early as Possible


The earlier you decide to start planning for your retirement the better it’ll be for you in long run. Starting this early will give you more time to plan and save up which will ultimately increase the amount you have to spend when you do eventually retire. The added funds may give you the opportunity to relocate or emigrate to a place you could only dream of when were younger!

In addition, starting early allows you to take more risks with your money so if something does go wrong you have the time recoup what you have lost and try again.


2) Ask for Professional Advice


Retirement planning is by no means simple and straight forward. There are many services & products specifically designed to help those who are planning their retirement that you will probably never hear about unless you consult a professional.

Doing so will put you in the best possible position to make the most out of your retirement options.


3) Review your Outgoings


This is one is pretty simple but essential if you want to give yourself the best retirement possible. By reviewing your expenditure you know how much you have going out each month which allows you to plan more efficiently.


4) Buying an Annuity


An Annuity is essentially an income for life. The way it works is you save up your pension and when you finally reach an age of your choice and decide you want to stop working, you withdraw the pension and convert what you’ve saved into an income for life.


That said, we highly recommend speaking to a professional financial adviser before pursuing this option as there are many different products and each one is different. The key here is to pick the one that caters for your specific needs & goals.

5) Take Risks


Taking risks and trying to increase your retirement pot is a great idea. If they work out you get to live the remainder of your life exactly the way you want it.

Saying that it’s important to examine each decision thoroughly before proceeding with any investment. Furthermore, it makes more sense to take risks when you are younger in age so you can recover if things were to go wrong. This is why it’s a sound idea to start your retirement plan as soon as possible.


6) Set a Budget & Reduce your Spending


Setting up a budget keeps you disciplined so when the time does come for you to retire you have right amount of funds available for you to live the perfect retirement. It also helps you avoid potential financial difficulties that some couples do face when they stop paying attention to their finances.

The people over at Fidelity have a great retirement planning calculator that can help with this.

Taking this a step further and reducing your spending will result in you having an even larger retirement pot which you can use to enjoy your retirement even more.


How can Housebuyers4u Help you If you’re Wanting to Sell up & Retire


If you’re someone who wants to sell their property quickly so you can begin your retirement as soon as possible, we here at Housebuyers4u are the perfect choice for you.

We are genuine cash house buyers who guarantee to buy any house in any condition within 7-14 days and have the cash funds available to purchase a property at any time. Below is a chart outlining our services compared to estate agents and other house buying companies.


Housebuyers4u cash house buyers with RIC's survey

 


If that’s not enough, we are also proud members of the National Association of Property Buyers meaning we have to follow even stricter regulations when purchasing properties. That should help put your mind at ease if you’re unsure of selling your home to a house buying company!

Move forward with the sale of your house – Get your free no obligation cash offer today!

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