How can we make use of our biggest asset to make our retirement comfortable and enjoyable? By Tony Watts OBE.

It would be nice to think that we will have enough coming in through our pensions to keep us comfortable in retirement. Alternatively, that we will have capital put aside to get by.

But, for huge numbers of people, the biggest single asset they can turn to is their home. Sometimes, it’s the only one. So how can you use to generate enough money to get by… and still keep a roof over your head?

The dilemma for many is that even the costs of running the home outstrip their ability to keep it repaired, secure and warm… “house rich, cash poor” is the phrase that’s often applied. And while most of assume that having a large asset will preclude us from accessing financial support, there are excellent organisations like Care and Repair which can help – and often without charge.

Many people look to equity release as a route to release much-needed funds. Yes, it will do that – and there are various schemes which allow a level of flexibility (for instance, only drawing down what capital you need as you need it, rather than having a lump sum which will stymie your hopes of receiving a raft of benefits).  But it does come with a few wealth warnings, as it can sometimes provide an expensive way to raise money.

Downsizing is another option – ideally to a house or apartment that will need less upkeep and maintenance in future years. Dedicated retirement housing is available, although finding a suitable development that will allow you to remain close to your existing network of friends and family can prove elusive. A potential plus side is that you will have a ready-made community around you.

These will also come with management costs, which can stack up, but which do cover many of the costs you would otherwise be paying out for your own home. And do your research too on the resale value of a home in that development (if there is evidence) to ensue you aren’t taking an immediate hit on your capital.

But not everyone wants to live like in a retirement community. For them, a conventional (albeit smaller) home might offer the best solution – perhaps a town apartment, country cottage or seaside bungalow. That’s fine too… but do make sure that you will have a support network around you in the years ahead… and can get about if your car is no longer an option. And do factor in the cost of buying and selling (typically £10,000 when it’s all added up).

Finally, a wild card to consider: rent your home.

You won’t be committed to an expensive investment if your needs change in the future or you want to keep your options open as to where you live… some older people now divide their time between living close to their different children’s homes.

The returns on your investment will pay the rent and possibly a buffer to enjoy yourself too… and your capital remains intact.

If, though, security of tenure is important to you, ensure that you have a lifetime lease and not the conventional six or 12 months one. There are a very few specialist organisations that can find accommodation to fit that bill – notably www.girlings.co.uk