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You can have your cake and eat it too - when you retire

The number of people throughout the world reaching retirement with large mortgages is increasing. Many have been adding debt using the equity in their homes to pay for things like home renovations, cars, holidays or even school fees for children.

Traditionally people used to work hard to reduce their debt while still in the workforce with the view of reaching retirement mortgage free. A lot of families also count on downsizing the family home and using the difference to fund their retirement.

Debt can be good and your mortgage can help you finance some of those expenses at a better rate than credit cards or personal loans. However, it is important to consider the risks of taking up more debt and how will it affect your future plans. After all, it might be very difficult to meet mortgage repayments when you don't have an income when you retire.

Paying off your mortgage before you retire is a priority, but make sure that it is not your only retirement plan. Seek specialist financial advice to find the best option to achieve your retirement goals.

Contact us if you would like to discuss your debt or find out more about planning for retirement.

Image courtesy of Stuart Miles freedigitialphotos.net