5 Ways to Boost Your Pension Fund in Retirement

Retirement is one of those things that are a certainty in life and that you cannot escape. It can be something to dread, or something to look forward to, depending on how you manage your finances throughout your life – starting right now!

Did you know that you don’t need to necessarily rely on your state pension?

There are numerous ways to boost that pension fund so that you can enjoy a more comfortable retirement, and even some fun money to spend on trips and other small luxuries in your golden years.

Here are some ways in which you can make sure your third act is your best one yet!

1. Downsize your home

A lot of people find that as they grow in age and advance to a different stage in their lives, their children leave the nest, they have less energy, or come to have mobility issues. That can make a big home too large to manage effectively and a bit of a wasted space for an elderly couple.

At this point, many choose to downsize to a smaller home that is easier to manage and that fits their needs better – perhaps something without stairs or otherwise equipped for individuals with mobility issues.

The advantage here is that you are left with some money to play around with – or set aside for your retirement years. If selling your house sounds like a hassle, a private house sales company like Yes Homebuyers can make the selling process quick and hassle-free, so that you can enjoy the money as soon as possible.

2. Release equity

If you’ve been diligently paying your mortgage and you’ve got some equity in your home, this can be an excellent opportunity to release these funds and put them to good use! A lot of people aren’t aware that you can also opt for refinancing, taking a second mortgage, or other similar alternatives that would grant you access to some money.

You are free to do whatever you want with it: deposit it in a pension fund, invest it, or otherwise use it to boost your retirement income.

3. Make an investment

It’s never too late to start an investment portfolio – the only thing to be careful about is what you invest in and how much of a risk you are taking. Maybe don’t put your money into Bitcoin or other volatile investments; one of the safest bets is to invest in property. Buying to let is a sure-fire way of ensuring a form of income in the future, and in a relatively low-effort way.

The renting market will always be active, and maintaining a rental property doesn’t have to require much effort. All the financial transactions are done remotely and online nowadays, and any and all repairs and maintenance can be done by paid professionals.

4. Start a business

Starting a business in the latter part of your life may seem like a risky move, but it can have a double pay-out: it gives you something to put your energy into during your retirement years, and it provides some extra income for you.

Some people choose to travel around the world, invest in a vacation home in a tropical country, or set up trust funds for children and grandchildren, but if you want a challenge or to fulfil a dream that can pay off in a big way, a start-up can be the perfect passion project!

5. Utilise the kids’ inheritance

There is also a point to be made here about spending the kids’ inheritance. While leaving an inheritance for your kids or grandkids is certainly a noble gesture, it should not come at the expense of your comfort during your retirement years! At the end of the day, your goal is to be able to be self-sufficient and live comfortably.

If your pension fund doesn’t stretch as far as you’d like it to, consider at least dipping into the inheritance fund, if you don’t need to utilise all of it. Remember that your children have decades ahead of them to forge their own paths and become financially independent, and ultimately, they are also able to opt for student loans and other financing avenues that are no longer available to you at the age of retirement.

As you can see, there is always something you can do to add to your pension fund if you want to ensure a comfortable life. Have a think about it and see what is the best option for you!