Boosting Your Retirement Income

Business owners sometimes come to us as retirement is starting to emerge over the hill. They’re concerned that they haven’t enough put aside for their later years.

This might be because they didn’t plan far enough in advance. Sometime their industry has changed, and their business is worth a lot less than they had anticipated. Or sometimes they’ve simply been living the high life and neglected their retirement savings!

Assuming you’re saving as much as you practically can and you have a suitable investment strategy in place, all is not lost.  Providing your objectives for your retirement are reasonable, there are various options to consider.

Work for Longer

This is the most obvious one. This may not change the value of your business when you sell or close it. However, it will allow you to extract an income from the business for longer. By delaying retirement you’re allowing your pension to grow, which should ensure a higher level of income when you start drawing it down.

Part-Time Work

This option is often very attractive to people and, in our experience, has many benefits. By continuing to earn a salary, you’re not drawing down as much income from your pension. We have seen many wealthy people retiring and quickly looking for part-time work, even when they don’t need the money. Continuing to work, albeit at a slower place, provides a challenge, the sociability of working and a feeling of achievement and self-worth.

Take in a Lodger

Again, this one is not for everyone but it suits a lot of people. Particularly for people living alone, having a lodger can be a great source of company and also provides a greater sense of security at home. There is also a pretty generous tax exemption limit under Rent-a-Room Relief, which you should study carefully to ensure you meet the terms. This can deliver a very nice supplementary income.

Downsize Your House

Your home may be your biggest financial asset. It may have been a happy family home for many years and hold great emotional attachment. However, a large house often becomes more of a burden than an asset, the older the residents become. If the kids have moved out, having gardens to manage and empty rooms to keep can be stressful. Downsizing your house in retirement might be a smart move for you. You’ll still have all the memories, but do you want to remain in the past for sentimental reasons or live your future to the full?

Downsizing will enable you financially to do all the things in life that you want to do. And won’t it be nice to have a smaller garden that you can easily manage?

Take a look at our article on when you should start planning for retirement next.