Category Archives: Retirement

Job Opportunities, Jobs, News, Pets, Retirement, Travel

Why becoming a homesitter is good for your wallet…. and your patience!

People wanting to avoid the travel chaos that has hit UK airports and ports this year, and enjoy a stress free UK break with petrol and pay covered then homesitting could be for you!

Homesitting involves staying in people’s homes when they go away to take care of the home and any pets. It offers a fantastic way to explore the UK, staying for free and having petrol costs covered. Duties are minimal. And whilst home and pet sitting is a serious responsibility it is meant to be enjoyable.

 

Normally the average working time does not exceed 1.75 hours per day. When homesitters are not carrying out duties, they are free to remain on the client’s premises or to explore the local area.

Any period away from the property must not exceed three consecutive hours during daylight or one hour after dark, but homesitters can leave the premises on more than one occasion each day.

Our homesitters tell us that they enjoy their trips out visiting local towns they may never have been to, exploring local beauty spots and National Trust properties or taking country walks with the dogs they look after.

Shops, museums and galleries are among the varied attractions of city home sits, and for rural sits visiting country pubs and enjoying peaceful time away from the hustle and bustle of life are big draws.

 

Most of our homesitters are retirees in their 50s, 60s and 70s and many rely on their pension incomes. The cost of living crisis has meant that rising prices for petrol, food and energy are hard to avoid, but becoming a homesitter can be a way to limit the impact and boost pension income.

Home and pet sitters employed by Homesitters Ltd typically earn around £170 as a couple for a two-week homesit, which includes a daily food allowance, plus they get reimbursed for mileage at 45p per mile.  People can also make savings on their energy bills as they are staying in someone else’s home, especially if they do lots of assignments.

 

Former hotelier, John Charlick (pictured above) has been home and pet sitting for four years since retiring from the hospitality industry.  Keen to stay active in retirement, John looked for a flexible part time role. He has friends who dog sit who suggested he might try something similar. He found Homesitters online, applied and was offered the job.

 

John’s favourite part of the role is the travel across the UK to different homes and meeting different people. John says, “I’m still working in the hospitality industry in a way. I’m a real people person and love the social side of the job but my favourite thing is staying in gorgeous homes and visiting places I haven’t been to before.

 

“It can be like going on a mini break. I often stay in great locations and very glamorous homes, with swimming pools and tennis courts. I took up playing the piano again a few years ago so if there’s a piano I enjoy playing in the evenings.

“I also enjoy spending time with the animals, particularly dogs. I’ve owned dogs in the past, but now that I live in a flat it isn’t practical to have one and they are rather a tie. Homesitting gives me the opportunity to look after dogs and take them for walks, but I can then hand them back to their owners – rather like having grandchildren!”

 

One of John’s most memorable home sits was an assignment in Guernsey. He explains, “I’d never been to the island before, so it was interesting to visit for a week. I stayed in a charming house looking after a cat; it was almost like a holiday with free travel and accommodation.

“I also enjoy taking on assignments in London. I lived there for a time and still have lots of friends I can meet for lunch. My favourite assignment is for a regular client who has a Whippet. I stay there four times a year and usually arrive the night before the client goes away so that we can all have supper together – I almost feel like one of the family.”

 

If this role sounds great, why not apply to become a homesitter? We are currently recruiting throughout the UK and would love to hear from people interested in becoming homesitters. To find out more and to apply, click here.

 

News, Property, Retirement

Renting in a retirement community is helping older people beat loneliness

One in 10 people aged 65 or over feel lonely some or all of the time and say feelings of loneliness have made them feel worried or anxious, according to a poll in May by the Mental Health Foundation[i].

The ITV soap, Coronation Street[ii] has also been raising awareness of loneliness and mental health with a storyline around character Audrey Roberts admitting that she tried to take her own life after struggling with loneliness.

 

Dominic Stead, Property Director at My Future Living said that loneliness is a common issue for many older people; but highlights the benefits of living in a retirement community to combat loneliness.

He said, “Living in a retirement community can bring many benefits, including having neighbours of a similar age to socialise with. Our apartments based in retirement developments are designed for independent living, but also have this social element that many people thoroughly enjoy.

“There are communal lounges and gardens where people can have a chat over a cup of tea or coffee, and many developments organise activities, events and outings that people can get involved with. For people living alone or those who maybe don’t have family close by living in a retirement community can be a real lifeline for them.”

Rick by the sea

One retiree who enjoys the social side of living in a retirement community is 77-year-old Dutch-born retired stockbroker, Diederik (Rik) Schmull, rents a two-bedroom apartment at Homecove House, a retirement development in Westcliff-On-Sea in Essex.

Rik was attracted to renting in a retirement community because it’s flexible, plus he has an assured tenancy which means that as long as he sticks to the terms of his agreement he can live there for as long as he wishes.

Rik enjoys being part of a community and has made friends with people in the development. He never feels isolated or alone, and highly recommends renting in a retirement community.

“For me it’s worked out really well and I’m very happy. It’s all about independent living but with the reassurance there is help available should you need it,” he adds.

 

Another resident, 62-year-old Denise Birley, who has rented a one-bedroom retirement flat in a development called Homerose House in Southsea, Hampshire since July 2021, is living alone for the first time after leaving a former relationship.

Denise has quickly embraced living on her own and has made lots of friends, even needing to buy a diary to keep track of her social life.

She says, “One of the best things about moving here is I’ve met lots of new people. The development organises events like coffee mornings which I go to. Even going to the laundry room means I meet people for a chat, so I never feel lonely. I feel I’ve got my life back and can enjoy the rest of the time I have happily.”

Homecove House’s Communal Lounge

My Future Living offer apartments in purpose-built retirement developments throughout the UK. They are designed for independent living, but have a 24-hour emergency alarm system in each apartment and an onsite manager on duty.

Most are available on assured ‘lifetime’ tenancies, which aren’t commonly available in the private rented sector, which is reassuring for older people who want to settle and not have to move again.

 

To find out more about renting a home in a retirement development visit: www.myfutureliving.co.uk

[i] https://www.independent.co.uk/news/health/mental-health-foundation-mencap-data-wifi-government-b2077057.html

[ii] https://www.dailymail.co.uk/tvshowbiz/article-11091189/Coronation-Streets-Audrey-admits-suicide-attempt-heartbreaking-storyline.html

News, Pensions, Retirement

Do you want more money for your retirement? Here are five ways to boost your pension.

When it comes to pensions, one factor is crucial; size. Of course, how much you need in your pension pot depends on the retirement lifestyle you want to have. However, as a general rule, your pension pot should be as large as possible.

Building up your pension pot is a long-term process. Consequently, the sooner you start, the more time you have to accumulate your funds. Also, your retirement age is a consideration as the earlier you want to retire, the less time you’ll have to save.

This article aims to provide you with five ways to boost your pension. It will also inform you how the age you want to retire compares to the rest of the UK and three factors influencing when you can retire.

Five ways to boost your pension.

  1. Start saving now.

Every day is one day closer to your retirement. Therefore, failing to start saving today means you have lost another opportunity to build your retirement funds. By starting to save now, you will give yourself the best chance to maximise your pension pot.

  1. Make regular top-up payments.

Even making small regular top-up payments, or whenever you can, makes a significant difference to your pension pot. Remember, your pension contributions qualify for tax relief and will experience compound interest growth.

  1. Remain within your workplace pension scheme.

Being auto-enrolled into a workplace pension scheme is a fantastic benefit for millions of workers. You don’t have to do any administration, and your 4% contributions are taken at source. You’ll also benefit from tax relief and a 3% contribution from your employer. Therefore, you should only ever choose to opt-out of a workplace pension in the direst circumstances.

  1. Regularly check your pension.

You will put a significant amount of money into your pension pot. Therefore, it makes sense that you should keep an eye on your investment. Your pension could suffer from high charges or poor performance.

Both of these could erode your pension funds. Failing to regularly check your pension means you could be unaware of these. Consequently, your funds could be diminishing without your knowledge.

  1. Keep working a bit longer.

Remaining in work for a few years beyond your planned retirement will have a couple of benefits. Firstly, you will continue contributing to your pension pot without using those funds. Secondly, your pension funds will continue to receive tax relief and compound interest growth. These few additional years could make a significant difference to the size of your pot.

Three factors affect when you can retire.

People have aspirations to retire at different ages. Regardless of when you want to retire, here are three factors affecting when you can do so:

Extended working lives.

Generally speaking, people are working longer than they used to. The number of employed men and women in the 60-64-year-old bracket has grown significantly in the last decade. Indeed, almost twice as many women are now employed, and the number of men in work has increased by 14.3%. Today, around a quarter of 65-69-year-old men are still working. This compares to only 15% 10 years ago.

Rising State Pension qualifying age.

The State Pension qualifying age for men and women has equalised at 65. This situation is the first time parity has been reached in the 100 years since the state pension was introduced. Despite receiving the pension at 65, almost half of employed women don’t plan to retire until they are 67. 

The maximum state pension you could receive is currently £179.60 for a week. If you don’t believe this is sufficient to provide the retirement lifestyle you desire, you should put other provisions in place.

Increased pension flexibility.

Pension freedoms were introduced in 2015, giving people more flexibility in accessing their pension funds. From 55, you can now take your pension as a lump sum for certain pensions. However, only the first 25% is tax-free. Therefore, you should consider the tax implications of taking too much money from your pension pot.

Of course, you can take the tax-free amount and leave the remaining funds invested in providing an income. You can also leave your entire funds invested to generate maximum income each month. Before making any significant decision regarding your pension, it is a good idea to consult a regulated financial advisor. Check out Portafina. 

 

News, Retirement

Cost of living: Four in ten people facing retirement predict they will need to work beyond the state pension age

  • 93% surveyed are worried about their finances post retirement
  • 80% are worried about the rising cost of living post-retirement
  • 56% are concerned their pensions and savings will not be enough to last their retirement years, with 42% predicting they’ll work out of necessity

New research reveals that 93% of employees surveyed said they are worried about their finances post retirement, with 80% citing the rising cost of living as a key concern. As many as 56% felt that their pensions and savings won’t be enough to last their retirement years.

In research carried out by Renovo, specialists in supporting employers and employees through redundancy and retirement planning, 43% of those surveyed facing retirement predict they will work beyond the state pension age, as they are increasingly concerned about financial, health and lifestyle issues in later careers.

Initial survey questions were completed by 629 HR professionals and company directors. Of those surveyed, 253 respondents currently provide pre-retirement support to employees. Of 986 employees surveyed, 256 have utilised pre-retirement support from their employer within the last 5 years.

Chris Parker, Managing Director of Renovo, explains:

“The retirement picture is far more complex and pressured than it has been historically. 

“With no default retirement age and a rising state pension age, we are seeing people increasingly struggle to make firm decisions on when and how to retire. People are generally living longer which means more pension savings are needed and those approaching retirement are now more likely to have financially dependent children while at the same time caring for elderly parents. These are all financial pressures that significantly impact people’s plans for retirement, which are of course greatly exaggerated by the rising cost of living crisis.

“Unsurprisingly, with finances being squeezed, finding opportunities to work for longer is becoming necessary for many. This impacts employers immeasurably too – not just in terms of rising occupational health risks and costs but also in terms of talent mobility and succession planning.”

Beyond financial concerns

Renovo’s study found that it’s not just financial problems employees are worried about as they approach retirement. Other concerns cited included maintaining physical health (50%), remaining productive (40%), loneliness (39%) and the impact on personal relationships (17%).

Only 1 in 5 employers provide pre-retirement support

Renovo’s research also discovered that only 1 in 5 employers provide any sort of pre-retirement support. The research shows that, of the limited number of respondents that do receive support, only half received information on financial education, 24% on mental and emotional health in retirement and 22% on physical health in retirement.

Support needed earlier in employee’s career

Earlier access to information and support was also a factor demonstrated in Renovo’s study, with 78% of employees wishing they’d received more information about pensions and savings earlier on in their career.

Parker summarises:

“Supporting employees earlier means organisations can benefit from having employees who have a clear plan for the later stages of their careers and are motivated around those plans. Just a quarter (24%) of the survey respondents say the support they received covered later stage career planning – and with people feeling they need to work longer this is becoming increasingly important.

“Employees who are able to be more transparent about their intentions with their managers plus take more control of the later stages of their careers provide more visibility to their employers enabling effective succession and workforce planning.”

News, Property, Retirement

Rising house prices promoting a wave of retirees to downsize and move to the coast

With Zoopla[i] recently reporting that house prices reached a record high in April 2022 but may be slowing down, more retirees are tempted to downsize according to retirement rental brand, My Future Living.

Dominic Stead, Property Director at My Future Living says they are seeing a rising number of enquiries from people interested in renting in retirement, with properties in coastal towns across the UK particularly popular.

He said, “The sun’s out and much of the UK is basking in a mini heatwave, which may have some older people thinking about relocating to the coast. Combine that with record house prices and COVID restrictions now lifted, it could be a good time to start planning a move.

“Over the past decade downsizing and renting in retirement has become more common as people realise it offers financial and social benefits. Freeing up capital in a home, no longer having to worry about maintenance and property upkeep costs, as well as living in a safe and sociable retirement community is appealing for many in their 60s, 70s and 80s.

“We’re expecting a busy summer as people that may have put off moving during the pandemic years, just decide to get on with it and move to their ideal dream location.”

One retiree who relocated to the coast from London is 77-year-old Dutch-born retired stockbroker, Diederik (Rik) Schmull, who now rents a two-bedroom apartment at Homecove House, a retirement development in Westcliff-On-Sea in Essex.

Having previously owned a flat, Rik was attracted to renting in a retirement community because it’s flexible, so he could quickly move back to Amsterdam if he wanted. He also has an assured tenancy which means that as long as he sticks to the terms of his agreement he can live there for as long as he wishes.

He says, “Having rented a few places on shorthold tenancies before moving here, I ended up having to move twice at fairly short notice. I didn’t want that to happen again, especially as I’m getting older. Having the security of tenure that I can stay as long as I want is really reassuring.”

Rik enjoys being part of a community and has made friends with people in the development. He never feels isolated or alone, and highly recommends renting in a retirement community.

“For me it’s worked out really well and I’m very happy. It’s all about independent living but with the reassurance there is help available should you need it,” he adds.

My Future Living currently has a one bedroom apartment in Homecove House, where Rik lives, from £950 per calendar month.  It’s on the fifth floor and has fantastic views overlooking the sea, gardens, and promenade. Other coastal properties are also available in Exeter in Devon, Christchurch in Dorset and Scarborough in North Yorkshire.

Homecourt House in Exeter is a lovely development just off the high street, with restaurants, shops and cultural attractions close, as well as being a short drive from the coast. A one bedroom apartment is available from £775 per calendar month.

Over in Dorset is Homechurch House a popular development in Christchurch, a town on the shores of its own harbour, close to the magnificent Dorset World Heritage Coast and the tranquil New Forest National Park. A one bedroom apartment is available from £925 per calendar month.

And in North Yorkshire, Hartford Court is a development in Scarborough ideally located close to local shops and amenities, and within walking distance of the seafront. Scarborough town centre is a mile away and is one of the largest resorts along the east coast of Britain. A one bedroom apartment is available from £775 per calendar month.

These purpose built retirement developments have a 24 hour careline system in each apartment and an onsite manager on duty. They have shared lounges and gardens to socialise in, plus events and activities are organised that people can join in with if they wish.

To find out more about renting a home in a retirement development visit: www.myfutureliving.co.uk

News, Pensions, Retirement

Explore all avenues before stopping pension contributions says Punter Southall Aspire

The cost of living crisis has left nine in ten people struggling to make ends meet and concerned about funding their retirement, according to new research.

To address this, many people are reducing their savings including their pension contributions.

Over half are no longer able to save as they want to and 13 per cent say they plan to stop or reduce their pension contributions to save money in the short term – increasing to 21 per cent of 18-34 years old.

Alan Morahan, Chief Commercial Officer at Punter Southall Aspire, a financial planning and retirement savings business, said, “It’s not surprising that as household budgets get squeezed people look for ways to cut back their spending and pension contributions could be reduced or stopped completely.

However, people should be encouraged to look at other ways of saving money before considering the pension option.

In the UK, pensions are already woefully underfunded as demonstrated by this survey from Cushon, which estimated that people aged between 50 and 64 have pension savings that are on average 58 per cent short of what they need, adding up to a total annual savings gap of £132bn.

“Before reducing or ceasing pension contributions people should look at all other bills and see if these can be reduced. They should set a mantra of ‘I’m going to get it for less’ and challenge every insurance renewal, review every subscription e.g. Netflix, Spotify, Amazon Prime and, whilst it might not be possible to reduce energy costs, it might be possible to get reductions on landline and mobile phone bills and broadband costs.

“We recommend that people trawl the memory banks to see if they’ve got money lost down the back of what might be referred to as the cyber-sofa. This could be money on payment apps like PayPal, holiday cash cards, travel cards like Oyster, gift cards, or even in a betting account set up to have a flutter on the Grand National.

“All avenues should be explored before cutting pension contributions because no one wants the difficult times we’re experiencing now to become the reality for their retirement years.”

Animals, News, Retirement

Sharon Payne takes early retirement and becomes a dog whisperer

Sharon Payne, 57 from Milton Keynes has been home and pet sitting through Homesitters Ltd since April 2018 after taking early retirement from a busy career working for a food packaging company.

Before retiring at the age of 55 Sharon talked to a financial adviser who advised her it would be wise to continue earning some money for a while, and friends she spoke to were concerned she would get fed up without a job.

Unwilling to take another 9 to 5 office job, Sharon looked for alternatives and came across Homesitters.  It sounded like the ideal role for her, she would enjoy the travel and spending time with pets whilst earning a modest remuneration.

After attending an interview at Homesitters’ offices she was offered the role.

 

She says, “I was impressed with the level of detail Homesitters went into in the interview. Home and pet sitting may sound like a low key job but you’re looking after the most important things in people’s lives, apart from their children. Looking after animals with different needs and people’s homes is a responsible job so I appreciated the process I went through to get the job.

“The company is very professional and caring. They carefully match clients and homesitters so the right people are assigned to the right assignments. They arrange preliminary meetings for homesitters and clients so they can meet and discuss the brief and they also call homesitters while they are on assignment to check everything is running smoothly. As I home sit alone, I was very reassured by these processes.”

 

One of the things Sharon enjoys about the role is the interesting people she meets. Talking about one of her most memorable assignments she explains, “I stayed in a beautiful old house in a small village where I looked after two dogs – and 35 tortoises! The owner had had a few pet tortoises and someone wanting to rehome a tortoise heard she liked them and took it to her and it snowballed from there!

 

“I really enjoyed looking after them, although I had to keep going to the local shop for more salad as they eat a kilo of salad every day between them! They are quite low maintenance and mostly put themselves to bed at night although I did have to check they were all in their beds and look for any stragglers!”

 

Other memorable home sits for Sharon included staying in a gorgeous Tudor mansion in Cambridgeshire with landscaped gardens and a swimming pool, and looking after an extremely well behaved dog on assignment near Chelmsford who, when he got muddy, would sit by the door and lift his paws one by one for Sharon to wash and wait to be towel dried off before venturing into the house!

Having always considered herself to be a ‘cat person’ Sharon has been surprised to discover she is something of a dog whisperer.

 

She says, “The dogs are all lovely, they tend to follow me everywhere and they all have their own funny ways about them. Last year I looked after a miniature schnauzer puppy, she was very cute and I had so much fun with her – and when I went back to look after her again this year she remembered me. Her owners are completely besotted with her so while they were away I sent them pictures of her and told them what we’d been up to each day, which they really appreciated.”

 

Sharon also appreciates the income she receives through the company and has noticed that the job is actually saving her money. She explains, “It’s not so much about what I earn but what I don’t spend. I’ve noticed that since I started home sitting my gas, electric and water bills are significantly lower – my water company keeps reducing my monthly payment! I also get a food allowance so I eat for free while I’m on assignment.”

A keen golfer, Sharon always takes her golf clubs with her to play a few holes if there’s a golf course nearby, and on one assignment the grounds were so large that she was able to practice her swing without leaving the property – and the dog collected all the balls!

 

Sharon is also a keen photographer and enjoys taking her camera out on walks with the dogs, there’s always something new for her to photograph. She says the day just flies by while she’s on assignment – her friends certainly don’t need to worry about Sharon find her retirement boring!

 

Animals, News, Pets, Retirement

Could becoming a home and pet sitter boost your retirement income?

The cost of living is going up with energy, fuel and food prices all rising leading to many people being concerned about their finances. With inflation expected to hit 7% by spring[i] the crisis may get worse, before it gets better.

For retired people on a fixed pension income this can be worrying as there are limited to opportunities for retired people to add to their income.

One solution however is for them to become home and pet sitters who are employed to look after people’s homes and pets when they are away.

Most of our homesitters are retired people in their 50s,60s and 70s who want to remain active and fill their retirement with new experiences.

Our homesitters can boost their pension income because they can make savings on their own household utility bills when they are on assignments, and they receive a modest remuneration.

One retired couple who have been home and pet sitting through us since they retired are Peter and Julie Barnes from Gloucestershire who are both in their 60s. They typically earn around £180 as a couple for a two-week homesit, plus they get reimbursed for mileage at 45p per mile when they travel to and from the assignment and they get a daily food allowance.

The fees vary depending on how many pets are involved and the length of the assignment, however this extra income comes in handy with the Barnes’ saying they tend to save it up for holidays.

However, money wasn’t their main motivation for becoming homesitters it was the benefits of the role that appealed.  Prior to retirement Peter spent many years in the Armed Forces, before leaving to work in the printing industry. Julie was a swimming coach and a manager at a large leisure centre in Gloucester.

The couple wanted to do something adventurous in their retirement. Peter was keen to get a dog, but the couple also wanted to travel, which would be difficult with a pet.  Peter remembered seeing an advert for Homesitters Ltd in a magazine and realised the role could offer the perfect solution.

One of their favourite parts of the job is to travel and exploring new places. The couple especially love to spend time in the countryside because they enjoy walking and wildlife spotting.

Julie says, “We do a lot of homesits around the Cotswolds near where we live and really enjoy going to different places. Even if we’re only going thirty miles or so from our home, it is often to somewhere we haven’t heard of before! There’s a limited amount of exploring you can do while you’re working and we’re really enjoying discovering new places.”

The couple love to spend time with pets and both enjoy combining a long dog walk in the country with a pub lunch.

Peter says, “We can’t help but fall in love with the pets – they all have different characters. We looked after two black Labradors who loved to play in the snow and a beautiful Rhodesian Ridgeback who would sit and watch us read. We even looked after a parrot who would mimic Julie’s voice so I would think she was in the room talking to me!”

“We keep a travel journal to remind us of all the wonderful places we’ve been, the pets we’ve looked after and the people we’ve met.”

If you are looking for an interesting and fulfilling way to spend your retirement, as well as boost your pension income, we are currently on a recruitment drive.

We have assignments across the UK and offer flexible employment which can fit around other commitments.

One of the best things about working through us is all our homesitters are employed by us (rather than being self-employed) which means they benefit from support from our team when on assignment.

We also organise all the assignments, including arranging the preliminary meeting with clients prior to a homesitters agreeing to take a job. All homesitters are fully insured through our company too. If this sounds appealing, please get in touch, here.

 

 

 

[i] https://metro.co.uk/2022/02/03/cost-of-living-2022-energy-petrol-interest-rates-and-food-prices-16041718/

News, Property, Retirement

Half of all homes will be rented by older people by 2035

An ageing population is driving an increase in households renting, with new analysis by Paragon Bank[i] revealing that over half of homes in the private rented sector are anticipated to be headed up by someone over 45, up from around a third today, plus over four in five (81%) of renters aged 55 or over believe they will still be renting in 15 years.

They also highlight what is important to older renters, with nearly half (48%) of those aged 55 or over saying that being close to shops was in their top three priorities, along with good transport facilities, being close to friends and family and proximity to health services.

According to Jamie Turnbull, Business Director at retirement rentals brand My Future Living this echoes what they are witnessing with a growing number of older people choosing to rent a home in a retirement development in later life – a trend expected to continue.

A recent report from the Centre for Ageing Better[ii] says today there are almost 11 million people aged 65 and over – 19% of the total population. In 10 years’ time, this will have increased to almost 13 million people or 22% of the population.

Jamie says, “Renting is a popular choice for older people, especially homeowners who want to downsize after retiring. Renting in a retirement community offers several benefits including the chance to free up capital in a home and move to a smaller property where they don’t have to worry about maintenance, as this is included in the monthly rent. Being part of a sociable community is a big attraction too, plus developments are usually located in convenient locations for shops, transport and health facilities.  The majority of retirement rental properties are available on assured ‘lifetime’ tenancies, which give the same security of tenure as homeownership. This means renting can be a viable option, especially for those who have never rented.”

Dutch-born retired stockbroker, 77 year old Diederik (Rik) Schmull, decided to rent in a retirement community after moving out of London. He rents a two-bedroom apartment at Homecove House in Westcliff-On-Sea. He previously owned a flat in the Barbican, but sold it in anticipation of returning to Amsterdam and moved into a rented flat. However work commitments kept him in London and after he retired, he decided to stay in the UK.

Rik wanted to move out of the city and looked for a retirement community close to the sea.He explains, “I was still busy with meetings and events in London, so I wanted to be close enough to get there easily. Homecove House is ideal. It’s close to the beach and there are lots of amenities around but I can get into London in an hour. It’s the best of both worlds.”

Rik was attracted to renting in a retirement community because it’s flexible, so he could quickly move back to Amsterdam if he wanted, plus the assured tenancy means that as long as he sticks to the terms of his agreement he can live there for as long as he wishes.

He says, “The assured tenancy is a real benefit. Having rented a few places on shorthold tenancies before, I ended up having to move twice at fairly short notice. I didn’t want that to happen again, especially as I’m getting older. Having the security of tenure that I can stay as long as I want is really reassuring.”

Rik also enjoys being part of a community and has made friends with people in the development. This was comforting during the Covid-19 lockdowns and he never felt isolated or alone. He highly recommends renting in a retirement community.

“For me it’s worked out really well and I’m very happy. It’s all about independent living but with the reassurance there is help available should you need it. They do keep an eye on people especially those that live alone. Old age comes to us all and at some point it’s a sensible choice to live in a retirement community,” he adds.

My Future Living has a one bedroom apartment with balcony available in Homecove House, Westcliff-On-Sea for £950 per calendar month. The development is situated on the seafront, close to shops, amenities and the train station. The town is situated in a beautiful position on the Thames Estuary within easy reach of the peaceful Essex countryside and London.

Another available coastal property is a one bedroom apartment at Havenvale in Clacton-On-Sea for £795 per calendar month. Clacton-on Sea is a traditional seaside resort and one of the east coast’s most popular destinations, with an award winning beach, pier, beautifully maintained gardens and a leisure centre.

For those wanting to live close to a large city, My Future Living has a one bedroom apartment available at Redwood House in Northenden, just five miles from Manchester for £695 per calendar month. Northenden hosts a twice-weekly farmers market and has plenty of local amenities, as well as giving easy access to the bright lights of Manchester.

All rents are on an assured tenancy and include services and maintenance. Developments have communal facilities including a communal lounge where social events and activities take place and gardens, plus a 24 hour emergency call system in each apartment and an onsite Manager who oversees the development during the day.

To find out more about renting a home in a retirement development and other available properties visit: www.myfutureliving.co.uk

[i] https://www.propertywire.com/news/older-households-in-privately-rented-homes-to-soar-by-2035/

[ii] https://ageing-better.org.uk/summary-state-ageing-2022

Finance and Banking, Retirement

A high earner’s guide to investing in retirement

Investing in your pension can be an excellent way to grow your wealth, but it’s not the only way to ensure you have sufficient income for your retirement. As a high earner, you’ll also have to understand and manage the potential impact of the Lifetime Allowance — this is currently £1,073,100.

In addition, it’s important consider how to diversify your tax wrappers to ensure you are investing in your retirement in the most tax efficient way. This is arguably just as important as diversifying your investments.

When it comes to retirement planning, the best option is to consult with an expert financial adviser. With their professional help and some clever financial planning, you can structure your assets wisely, in the most effective way, and aim to reduce your tax burden.

In this article we’ll explore the expert’s approach to tax-efficient investing in retirement, so you can achieve your financial goals once you reach retirement age.

The four-box principle

One theory that offers a helpful approach to retirement planning is known as the ‘four-box principle’ — as named by Saltus, a financial planning and investment management company. This method aims to minimise the tax you pay on your retirement income, and focuses on four core tax wrappers, as the name suggests.

Depending on your personal circumstances and stage in life — and whether you’re accumulating wealth or drawing on your assets — these tax wrappers have varying advantages and uses.

If used in the right combination these four tax wrappers can have a significant effect on your wealth. These are:

  • Self-Invested Personal Pension (SIPP)
  • Individual Savings Account (ISA)
  • General Investment Account (GIA)
  • Offshore Bond

Let’s explore each of these tax wrappers further.

Self-Invested Personal Pension (SIPP)

Any contributions to your SIPP are gross of all tax — one of the main reasons they known to be a great vehicle for building wealth. Your contributions are also free of Capital Gains Tax (CGT). When it comes to withdrawing from your pension, you can usually take 25% completely tax-free, but the remaining amount is taxed at your marginal income rate.

Individual Savings Account (ISA)

The contributions to an ISA are net of tax (unlike a SIPP). However, once your money is in the ISA wrapper, there is no further tax to pay. Withdrawals from an ISA are also completely tax free.

General Investment Account (GIA)

Differing from an ISA and SIPP, GIAs are a fully taxable environment, meaning you’re liable for income tax and CGT. However, when accessing your money, you can make the most of your CGT allowance. For the tax year 2021/2022, this stands at £12,300 — a considerable amount of money you can access tax-free. Any gains over and above the CGT allowance are taxed at your marginal CGT rate.

Offshore Bond

A bond works in a way to essentially defer tax. Each year of your retirement, you can access 5% of your initial investment, without any immediate tax charges and free of CGT. However, any gains withdrawn from a bond are taxed as income at your marginal tax rate.

How do you use the four core tax wrappers?

To better understand the four-box principle it’s best to put the method into practice and look at an example.

A couple have £2 million to invest, and wish to have an income of £90,000 a year in retirement. Through structuring their wealth and using the four core tax wrappers, they can access this amount, completely free of tax.

In this case, they have been working with financial planning services to ensure they can navigate this somewhat complex method. Their assets are structured collectively as follows:

  • SIPPs — £750,000
  • ISAs — £500,000
  • GIAs — £500,000
  • Offshore Bond — £250,000

Using their tax-free personal allowance (as of tax year 21/22), they withdraw £12,570 each — a total of £25,140 tax-free.

Next, they make use of their annual CGT allowance, which as previously mentioned, is currently £12,300 each. This means they take a total of £24,600 from their GIAs.

Any withdrawals from an ISA are free of tax, and therefore the couple take £27,760 from their ISAs.

Finally, they take 5% of their initial investment from their offshore bond, which equals £12,500, and again, is tax-free.

In total, the couple have £90,000 a year, completely tax-free!

—

The four-box principle can be a complex method, and so it’s always best to consult with a financial adviser, to make the most of their expertise, before you make any decisions.

 

Disclaimer: Information is correct to the best of our understanding as at the date of publication. Nothing within this content is intended as, or can be relied upon, as financial advice. Capital is at risk. You may get back less than you invested.