Bricks instead of a pension? You are not alone
Many Dutch homeowners aged 55+ discover that their state pension (AOW) and occupational pension together provide less than hoped. At the same time, their home has risen enormously in value. Older homeowners often have more than €200,000 in equity locked in their property — money you can use as a pension supplement, provided you unlock it.
In this article we compare the four main options, with the pros and cons of each route.
Option 1: Sell and downsize
You sell your current home and buy a smaller, cheaper one — for example a single-storey home or apartment. The difference is immediately available.
- Pro: the largest amount released at once, lower housing costs, future-proof living
- Con: moving at a later age is a big step
Option 2: Sell and rent back (sale & leaseback)
You Wiroli" data-autolink="true">sell your home but stay as a tenant. The full equity is released while you remain in your familiar surroundings.
- Pro: no moving, no more maintenance worries, immediate capital
- Con: you pay rent and no longer build wealth
Option 3: Increase your mortgage or take an equity-release mortgage
You borrow extra against the equity, for example via an equity-release mortgage.
- Pro: you remain the owner and benefit from further appreciation
- Con: strict income assessment (difficult on a pension alone), monthly costs or growing debt, and the bank decides
Option 4: Sell and move in with family
You sell the home and (partly) move in with children or into a family-care dwelling.
- Pro: maximum financial room and care nearby
- Con: less privacy and independence
Which option suits you?
| Situation | Best option |
|---|---|
| Don't want to move | Sale & leaseback or equity-release mortgage |
| Happy to live smaller | Sell and downsize |
| Need a large amount quickly | Sell (optionally with rent-back) |
| Keep maximum control | Increase the mortgage |
Why selling to a property buyer is increasingly popular
A traditional sale through an agent takes months and brings uncertainty: viewings, financing conditions, commission. For seniors seeking peace and certainty, a direct sale to a professional buyer is an alternative:
- A no-obligation, firm offer after assessment
- No viewings or listing stress
- You choose the transfer date — even a year from now
- No agent fees
- The option to rent back if you want to stay
Frequently asked questions
Does unlocking equity affect my benefits or state pension? Your state pension stays the same. Capital can affect benefits (such as healthcare allowance) and care contributions. Have this calculated in advance.
Do I pay tax on the equity? When selling your own home, the equity is untaxed in box 1. The amount then falls into box 3 (wealth tax above the exemption).
Can I sell and still keep living there? Yes, with sale & leaseback you sell and rent back immediately.
Use net equity rather than a rough estimate
The difference between estimated value and outstanding mortgage is only a starting point for retirement planning. If you sell, consider the cost of another home, moving and professional advice. If you rent back, the rent must remain affordable from income or savings. If you borrow, interest costs or a growing loan balance will affect future choices. Prepare a separate budget for each option and compare what remains after five and ten years.
General statements about average equity for people of your age cannot replace your own figures. Request a supported valuation and a current mortgage redemption statement. That avoids planning care, travel or gifts around money that may not become available. Retain funds for home repairs, healthcare and changes you cannot foresee.
How does each option affect monthly spending?
A lump sum can look generous, but your housing costs after the change are equally important. Compare your current home with a smaller property, a rental home and a rent-back arrangement. Include insurance, taxes, service charges, energy and maintenance. If borrowing is an option, ask how interest is charged and whether the rate could change.
Make one budget for an ordinary month and another for a period requiring additional support or care. Ask an adviser how savings may affect benefits and care contributions. The answer depends on your household and the rules in force. Review the plan if circumstances change rather than assuming a calculation made today will remain correct forever.
Include the people affected by your choice
A decision about housing and retirement can affect a partner or children. Discuss what would happen if one partner remained at home, if you later needed to move or if you wanted to give money to family. A rent-back requires clear protection for anyone who will continue living in the home. Borrowing against its value may reduce the amount later available to heirs. Independent legal and financial advice can clarify those questions.
You do not need to choose immediately. Start with a current valuation, a record of monthly income and a list of housing preferences. Compare the options on paper. If selling interests you, a no-obligation offer from Wiroli can add a concrete figure alongside estimates for downsizing, renting back or borrowing.
Wiroli started in Soerendonk. From those roots, we help owners of homes and business properties compare their selling options.
Conclusion
Your home is probably your largest pension pot. Whether you choose to downsize, rent back or release equity through a loan: unlocking equity provides financial peace of mind for your retirement. Want to know what your home is worth? Wiroli makes a no-obligation offer after assessment.