How to Boost Your Retirement Income?


How to Boost Your Retirement Income?

Retirement is different for everyone. After having worked all your life to build your retirement savings, you want to lead a retirement life that is comforting, convenient, and without any financial hassles. You want to increase your retirement income to the best you can.

 

People are living longer than ever before. This means you will need more income after your retirement to pay for your health costs and other expenses. So, how do you boost your retirement income? These tips should help you prepare well financially for your twilight years.

 

1. Check Your Pension

Check your pension program if its value has declined. You may be earning much less income from the time you first applied for pension. There may be new pension programs that may provide you with more post-retirement income. Some of the new programs include:

  • Career payments
  • Energy supplement
  • Rent assistance

2. Recheck Your Investments

All investments are dynamic in terms of the returns they offer. The returns keep changing over time and depend on many market factors. So, it is important to review your investments from time to time. Check where your money is invested and consider updating your portfolio to generate better returns.

 

3. Start a Small Business

While trying to boost your retirement income, it makes all the sense to explore side hustles that can increase your income. You may take up many kinds of temporary jobs such as mowing someone's lawn or walking a dog. Do you know that you can generate up to $8,000 a year in such income without your pension entitlements getting affected?

 

4. Save on Your Maintenance or Repair Costs

Some tradesmen will offer special discounts to seniors for repair or maintenance jobs in their homes. Increasing your retirement income isn't just about earning more, but also saving more. You can find reliable plumber such as SPS Plumbers that offer special discounts for seniors. Things are always going to need maintenance in your home. It is better to take advantage of such schemes to keep more cash in your pocket.

 

5. Check Your Housing Wealth

Retirees in Australia are among the wealthiest, owning an average of $1.4 million in assets. Almost a million dollars worth of this wealth is in the form of their family home. A significant percentage of these retirees live in homes that are too big for them while they are unable to lead the retirement lifestyle they deserve.

 

You can make the most of your home equity to grow your retirement income.

  • Pension Loans Scheme (PLS): The PLS lets you get tax-free income on a fortnightly basis. You can avail an Instant Cash Loan against the equity of your home. The principal and interest get repaid after your death or when you sell your home.

  • Reverse Mortgages: These schemes are similar to PLS and are provided by commercial entities instead of the government. You can take drawdowns in a lump sum amount, as a line of credit, or in the form of an income stream.

  • Downsizing: You may sell your large house and move to a smaller one and contribute up to $300,000 into your super. The contribution can be double for couples.

Thus, there are many ways in which you can increase your retirement income. It is recommended to start planning and increasing your income as early as you can.

 

Image Credit Unsplash

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