Peace of mind about your home in old age

After retirement, many people ask themselves where and how they would like to live. It is better to think about this decision at an early stage. Not every house or apartment is suitable for the elderly. Where you live after retirement also has a considerable impact on how much of your assets will remain at your disposal. We recommend that you start planning where and how you will live 15 years before you retire.

Most people want to grow old in their own home because of the strong emotional ties they have to it. Over time you develop close social contacts in your neighborhood and neighbors often become friends. That’s why many people find it difficult to imagine selling their house or apartment when they retire and leaving familiar surroundings. In addition, moving to a senior-friendly apartment in the immediate vicinity cannot be guaranteed due to the rental housing market.

Would you like to stay in your own home after retirement to be close to your friends and family while remaining as flexible as possible?

Then the following solutions may be suitable for you:

Remodeling: What renovation costs should you expect?

Have you decided to renovate your own home to make it senior-friendly? Keep in mind that renovation costs can vary significantly depending on your individual needs and circumstances. Costs depend on factors such as the scope of renovations and the size and type of home.

The following questions are particularly relevant to you:
Do you want to carry out only the most necessary renovations? Or do you want to take additional measures, for example, to increase the value and quality of your property?

During the entire planning process, remember that the cost of materials is not the only critical factor. Rather, the service life of certain components and how regularly they should be replaced also play an important role in your financial planning.

We recommend you develop a long-term strategy for renovations, maintenance and refurbishment work. This is the best way to find out if the renovations are in line with your financial goals. A professional can advise you and assist you in estimating costs.

Renovations offer the following tax benefits

In fact, remodeling work can even bring tax advantages because thanks to deductions, you can lower your taxable income and thus reduce your tax burden.
Note, however, that renovation costs are only deductible if they serve to maintain the value of your property. This includes replacing old windows, maintaining the garden or renovating an old bathroom. By contrast, value-enhancing investments such as the installation of a new sauna are not deductible.

Remember that value-preserving measures can only be claimed for in the year in which they are incurred. That’s why it’s worth spreading the deductible costs over several years. You should therefore consider carrying out your renovations gradually as you will then benefit from lower progressive taxation, because you have not claimed all the tax in the same year.

If only minor maintenance and renovation costs are incurred in a given year, you may deduct a lump-sum amount from your taxable income. Depending on the canton, this deduction is 10% of the imputed rental value for newer properties and around 20% for older properties.
Energy-efficient renovations also reduce the tax burden, as these costs are also deducted from your taxable income. They also have a positive impact on the energy efficiency of your property and reduce energy consumption.