Retirement brings changes not only to the daily lives of many homeowners, but also to their financial situation. Decreasing income and new affordability requirements may mean that the financing of one’s home needs to be reconsidered.
Granit Kabashi, Head of Sales German-speaking Switzerland and Ticino at Tellco, highlights the importance of forward planning in an article by Manuel Boeck for The Market NZZ: “At the latest, property owners should develop a long-term strategy ten to fifteen years before retirement.”
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In the picture: Granit Kabashi, Head of Sales German-speaking Switzerland and Ticino at Tellco
Why Affordability Should Be Reviewed in Good Time
Affordability – in other words, whether mortgage interest, amortisation and maintenance can be covered by income – is central not only when initially financing a property. It remains a key factor in retirement. Since income typically declines in this stage of life, property owners should align their financing early with this new situation.
Kabashi stresses the importance of targeted preparation: “The aim is to meet affordability requirements even in retirement – ideally through gradual amortisation and the build-up of reserves for maintenance or unforeseen events.”
In addition to financial relief, such planning creates room to manoeuvre – for example for renovations, age-appropriate adaptations or unexpected expenses. Kabashi adds that it’s not only the mortgage that deserves attention: “Tax aspects must also be considered.”
Reserves as a Key Pillar of Retirement Financing
Especially in view of potential investments in barrier-free living or the preservation of a property’s value, reserves are a crucial factor. Property owners without sufficient financial buffers may find it harder to remain flexible in retirement: “Without reserves, financing in retirement becomes difficult, as banks are more cautious when granting mortgages,” Kabashi continues.
Depending on the model, term, and interest burden, a mortgage in old age can either become a challenge or remain a manageable solution. This makes it all the more important to set the right course early – ideally with a financing partner who keeps long-term developments in view.
Tellco as a Partner for Home Financing
Tellco supports clients not only with retirement planning, but also in financing their homes. With mortgage solutions that are tailored in the long term to one’s personal life situation, Tellco reliably accompanies homeowners right up to retirement.
Conclusion: Plan Ahead – Secure Affordability
Granit Kabashi’s comments emphasise this: a long-term, structured preparation for life after retirement pays off. Early coordination of amortisation, reserves, and tax considerations helps ensure the continued affordability of the home in retirement.