With the rising costs of living and longer life expectancy, funding your dream retirement can feel harder and more stressful than ever. Gone are the days of depending on Social Security and pension plans to pay for retirement. Most people must work on their own to build a substantial savings plan and portfolio that can sustain them in their later years.

Not to mention, most of us have lofty goals for our golden years—we don’t plan on sitting at home, twiddling our thumbs. You likely want to travel the world, buy a vacation home, visit grandkids, start new hobbies—you name it.

To be able to feel financially secure and confident enough to truly enjoy retirement, some investors are opting to incorporate alternative investments, like self-storage, into their portfolios. With ongoing volatility in both the stock and bond markets, pursuing alternative paths to retirement may better suit their investment goals and long-term needs, including steady income, security, and growth. 

Should retirees consider investing in self-storage? Here are a few compelling reasons why self-storage investing could enhance your retirement plan:

Provides a Steady Cash Flow 

We like to remind our investors that self-storage can help them accomplish three investing goals: security, income, and growth. For retirees in particular, income can often play a big role in their financial peace of mind during retirement.

Investing in self-storage facilities creates cash flow, which can help provide consistent income to retirees when they no longer receive a traditional paycheck.

Access to a Recession-Resistant Asset Class

When COVID-19 impacted commercial real estate in 2020, the self-storage sector was less affected than sectors that were more directly impacted by closures, like office buildings, strip centers, and malls. 

A similar trend occurred during The Great Recession in 2008. While other commercial real estate sectors experienced losses, the self-storage sector realized a gain of 5%. 

Self-storage has proven to be a resilient and recession-resistant asset class, providing positive returns in a number of challenging economic conditions. 

Adds a Passive Income Stream

While DIY investing in self-storage is an option, the amount of time investors must sink into research, conducting studies, running operations, and ensuring profitability is monumental.

Self-storage investing on your own can quickly become a very active endeavor, which may not appeal to investors seeking a sustainable retirement income solution. 

When investing with a knowledgeable self-storage sponsor, like Belrose, retirees can maintain their flexibility and freedom while still earning passive income. Belrose handles all aspects of the investment process, leveraging our vast network of resources and seasoned experts to identify, evaluate, and manage suitable opportunities for investors. 

Gain Exposure to a Growing Industry

The self-storage and moving services market is projected to grow an estimated $51.53 billion by 2028. This is driven largely by Gen X renters, who use self-storage more than any other demographic group. 

However, self-storage is beginning to pick up among Millennial renters, as well. Millennials now make up 35% of self-storage users, which is up from 20% a few years ago. As this demographic matures and lifestyles change, it’s likely we will see increased demand for self-storage from this group over time. 

In addition, our team remains focused on opportunities in secondary and tertiary markets as well, where growth continues on an upward trajectory and competition remains less fierce. These markets are also appealing due to the low cost of operations (as compared to major metropolitan areas). The increasing availability of technology and digital-first practices means self-storage operators can manage remotely, effectively cutting overhead costs and increasing profitability. 

Though the industry has corrected course since the pandemic boom, self-storage demand remains strong throughout the country. 

Incorporate Self-Storage Investing into Your Retirement Plan 

At Belrose, our time-tested approach to self-storage investing is centered around improving facility performance, enhancing facility efficiency, and leveraging opportunities for expansion. Driven to provide the best returns for our investors, we embrace security, consistent income, and growth as core pillars of our service. 

If you’d like to learn more about incorporating self-storage investing into your portfolio in retirement, we’d be happy to share more information. Just schedule a call with our CEO Joe Downs, and he’ll talk you through the process of self-storage investing at a time that’s convenient for you.