Early Retirement at 55: How to "Consume" Your Apartment While Still Living In It

Early Retirement at 55: How to "Consume" Your Apartment While Still Living In It

When You Have No Children — Who Will You Leave the Apartment To?

Marta (54) and Peter (56) have been married for 25 years. They have no children — not from lack of love, it just didn't happen. They own a 3-bedroom apartment in Bratislava (value ~€220,000), still have 4 years left on their mortgage, and share one dream:

"We want to retire at 55-60. Travel while we're still healthy. Not wait until 64 and then sit at home sick."
— Marta and Peter, Bratislava

The problem? State pension only starts at 64. And even when they get it, it will be around €600-700 per person. That's not enough for traveling.

But they have something most people don't: an apartment with no heirs. And that changes everything.

The Mathematics of Early Retirement

Classic Scenario: Wait for the State

ParameterPeterMarta
Current age5654
Retirement age6464
Years until retirement810
Expected pension~€750~€650
Combined monthly€1,400

Problem: 8-10 more years of work. At 64, they'll have health problems typical for their age. Traveling? Maybe yes, maybe no longer possible.

Early Retirement: The Penalty

If Peter retires early at 60 (4 years before the deadline):

  • Penalty: 0.5% per month = 24% reduction
  • Pension: 750 × 0.76 = €570
  • And that's for life!

Early retirement in Central Europe is expensive. But what if there's another way?

The "Equity Release" Concept — Consume the Apartment, Not Yourself

In Anglo-Saxon countries, there's a concept called equity release — unlocking property value during your lifetime. Millions of seniors in the UK, USA, and Australia use it.

In Slovakia, HomeGrif offers this service.

How Does It Work?

  1. You sell your apartment — but not to strangers on the market
  2. You receive a lump sum payment — part of the value immediately (20-35%)
  3. You receive monthly rent — until end of life, both of you
  4. You live there for life — usufruct registered in land registry
  5. After death — apartment stays with the new owner (not heirs, because you have none)

Example: Marta and Peter — Early Retirement at 57

Starting situation:

  • Apartment in Bratislava, 75m²: €220,000
  • Remaining mortgage: €35,000 (paid off from lump sum)
  • Net value: €185,000
  • Current combined income: €3,200 net
  • Expenses: €2,100 (including €450 mortgage payment)

Solution with HomeGrif (age 57/55):

ItemAmount
Lump sum payment€55,000
— mortgage payoff-€35,000
— remainder (reserve/travel)€20,000
Monthly rent (both)€720

New budget after leaving work:

IncomeAmount
HomeGrif rent€720
Part-time work (optional)€400
Interest on reserve (€20,000 × 4%)~€65
Total€1,185

Life Phase 2: State Pension from 64

When Peter reaches 64 (in 7 years):

IncomeAmount
HomeGrif rent€720
Peter's state pension€750
Marta's state pension (from 64)€650
Total€2,120

That's more than they had while working! And without work stress, without mortgage, in their own apartment.

Why This Makes Sense for Childless Couples

1. The Apartment Goes to No One — So Use It

Without children, your apartment will be inherited by distant relatives or the state. Why should you live modestly to enrich someone you don't even know?

2. Health Won't Wait

Statistics are clear:

  • Average Slovak man lives to 74 years / woman to 81 years
  • But healthy years are only 55-60
  • After 65, chronic diseases increase: heart, joints, diabetes

Travel and enjoy life now, not at 70.

3. No Mortgage Lien

Unlike reverse mortgages:

  • You're not a debtor — you sold, not borrowed
  • You can't lose your housing — you have usufruct rights
  • Rent is guaranteed — doesn't depend on interest rates or markets

Comparison: Wait vs. HomeGrif

CriterionWait until 64HomeGrif from 55-57
Extra years of work8-100-2
Healthy retirement years~10~17-20
Travel while fitMaybeDefinitely
Property value utilization0% (inheritance)100% (for you)
Who benefitsDistant heirsYou

Conclusion: Your Apartment, Your Life, Your Rules

As a childless couple, you're in a unique position. You have no obligation to leave an inheritance. You have the right to use what you've built your whole life — for yourself.

→ Calculate your rent


Sources

Zdieľať:

Zaujíma vás doživotná renta?

Vypočítajte si, koľko môžete získať z vášho bytu bez nutnosti predaja.

Vypočítať rentu