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Five ways to take advantage of rising interest rates to boost your savings

<p><em><a href="https://theconversation.com/profiles/fredrick-kibon-changwony-234363">Fredrick Kibon Changwony</a>, <a href="https://theconversation.com/institutions/university-of-stirling-1697">University of Stirling</a></em></p> <p>With the Bank of England base rate <a href="https://theconversation.com/how-the-bank-of-englands-interest-rate-hikes-are-filtering-through-to-your-finances-210344">currently the highest</a> it has been since early 2008, you may have a valuable opportunity to increase your earnings on pensions, investments and savings accounts. After all, when the central bank raises its main rate – the base rate, which is typically used as a benchmark for loans as well as savings accounts – it is trying to encourage people to spend less and save more.</p> <p>But UK banks and building societies have <a href="https://www.independent.co.uk/money/martin-lewis-savings-rates-mortgage-crisis-b2362955.html">recently been accused</a> of letting their savings rates lag the recent rapid rise in the base rate. UK regulator the Financial Conduct Authority has urged these financial firms to offer “<a href="https://www.fca.org.uk/news/press-releases/action-plan-cash-savings">fair and competitive</a>” savings rates in response to the increasing interest rates.</p> <p>Many financial institutions do offer accounts with <a href="https://www.theguardian.com/money/2023/jul/15/uk-savings-accounts-interest-nsi-building-societies-banks-deals">rates of 6% or more</a>. This is good news for avid savers – but only if you keep an eye on the market so you can switch from less competitive products. This is why it’s important to establish a regular savings habit, but many people are unsure about what that should involve.</p> <p>My colleagues and I have studied the <a href="https://dspace.stir.ac.uk/handle/1893/32240">correlation between people’s savings goals</a> (if they have any) and how they invest their money. We also looked at how seeking financial information advice, and being “good with numbers”, both influence this correlation.</p> <p>We analysed data from more than 40,000 individuals in 21,000 UK households from five waves of the Office for National Statistics Wealth and Assets Survey (WAS), conducted between 2006 and 2016. This data captures comprehensive economic wellbeing information and attitudes to financial planning.</p> <p>Our research shows the importance to your finances of setting multiple savings goals, keeping up with financial news, and seeking professional advice. Based on this, here are five research-based ways to make the most of your money.</p> <h2>1. Set specific savings goals</h2> <p>Establishing personal savings goals is one of the first steps most financial institutions and advisers will recommend to their customers, because it’s a good idea to <a href="https://www.investopedia.com/terms/c/compoundinterest.asp">save regularly</a>. Plus, our study shows that total financial assets increase in line with the number of savings goals you have, and that setting specific, rather than vague, goals leads to higher performance.</p> <p>Specific savings goals should have an end date, target figure, and even a meaningful name – for example, “£1,000 for 2024 trip to Asia” or “£250 for 2023 Christmas present fund”. This will create tangible reference points that encourage self-control and increase the pain you feel if you fail to meet your goal.</p> <h2>2. Seek professional financial advice</h2> <p>Rather than relying on friends, family and social media for financial advice, speak to an expert.</p> <p>Our research shows households that access professional financial advice were more likely to allocate a higher share of their wealth to stock portfolios than those that rely on friends, family and social media for financial advice. This result was consistent even across different wealth and income levels, with lower earners possibly using products like ISAs to make investments in stocks and shares. Other <a href="https://academic.oup.com/qje/article/134/3/1225/5435538">research shows</a> stock portfolios outperform most other types of investment in the long term.</p> <p>We also found that access to professional financial advice can substitute for setting goals, because your adviser should help you to determine the kinds of products to invest in (which is called asset allocation) for specific timelines and aims.</p> <h2>3. Brush up on your maths</h2> <p><a href="https://doi.org/10.1111/j.1475-5890.2007.00052.x">Several studies</a> show numerical skills affect how households gather and process information, <a href="https://psycnet.apa.org/doi/10.1037/a0013114">set goals</a>, perceive risks, and <a href="https://heinonline.org/HOL/P?h=hein.journals/fedred89&amp;i=791">decide to invest</a> in various financial assets. So, by brushing up on your basic numeracy and financial literacy skills – even with free online videos – you could boost your savings for the long term.</p> <p>Our study shows that individuals with high confidence in their numerical skills tend to have better financial planning habits – such as investing more in stocks and bonds than cash, which carries more risk but also the potential for greater returns. This trend is particularly evident among households with no savings goals, suggesting that numerical ability could compensate for failing to set such goals.</p> <h2>4. Adopt appropriate savings strategies</h2> <p>Diversified stock market portfolios generally outperform bonds and cash savings <a href="https://doi.org/10.1093/qje/qjz012">over longer periods</a>. However, stock markets can be volatile, so putting savings into less risky assets like bonds and cash is wise for savings goals of less than five years.</p> <p>In the longer term, investing across different global stock markets for more than five years can help counteract inflation. And you can access low-cost, diversified investment portfolios via financial products based on indices of stocks or other assets, such as exchange traded funds.</p> <h2>5. Set, monitor and adjust your plan</h2> <p>Free financial planning and budgeting apps can help you save money by tracking your spending and savings goals, and encouraging you to adhere to a budget.</p> <p>Most importantly, once you set savings goals and create a budget, don’t forget about them. Check regularly to see how your savings are building up and to monitor for any spending changes. A growing array of fintech tools can prompt and encourage this kind of long-term planning.</p> <p>Keeping an eye on savings rates is also important. As banks change rates or create new accounts, consider switching to get a better deal if you can do so without falling foul of account closure fees.</p> <p>It’s important to make sure your savings are working for you at any time, but its crucial in the current economy, when finances are tight but interest rates are rising.<!-- Below is The Conversation's page counter tag. Please DO NOT REMOVE. --><img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/208853/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /><!-- End of code. If you don't see any code above, please get new code from the Advanced tab after you click the republish button. The page counter does not collect any personal data. More info: https://theconversation.com/republishing-guidelines --></p> <p><em><a href="https://theconversation.com/profiles/fredrick-kibon-changwony-234363">Fredrick Kibon Changwony</a>, Lecturer in Accounting &amp; Finance, <a href="https://theconversation.com/institutions/university-of-stirling-1697">University of Stirling</a></em></p> <p><em>Image credits: Shutterstock</em></p> <p><em>This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/five-ways-to-take-advantage-of-rising-interest-rates-to-boost-your-savings-208853">original article</a>.</em></p>

Money & Banking

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The variation advantage: how to master tennis, learn a language, or build better AI

<p>Want to become a better tennis player? If you repeatedly practise serving to the same spot, you’ll master serving to that <em>exact</em> location, if conditions remain similar. Practising your serve to a variety of locations will take much longer to master, but in the end you’ll be a better tennis player, and much more capable of facing a fierce opponent.</p> <p>The reason why is all about variability: the more we’re exposed to, the better our neural networks are able to generalise and calculate which information is important to the task, and what is not. This also helps us learn and make decisions in new contexts.</p> <p><strong>From fox to hounds</strong></p> <p>This generalisation principle can be applied to many things, including learning languages or recognising dog breeds. For example, an infant will have difficulty learning what a ‘dog’ is if they are only exposed to chihuahuas instead of many dog breeds (chihuahuas, beagles, bulldogs etc.), which show the real variation of <em>Canis lupus familiaris</em>. Including information about what is <em>not</em> in the dog category – for example foxes – also helps us build generalisations, which helps us to eliminate irrelevant information.</p> <p>“Learning from less variable input is often fast, but may fail to generalise to new stimuli,” says Dr Limor Raviv, the senior investigator from the Max Planck Institute (Germany). “But these important insights have not been unified into a single theoretical framework, which has obscured the bigger picture.”</p> <p>To better understand the patterns behind this generalisation framework, and how variability effects the human learning process and that of computers, Raviv’s research team explored over 150 studies on variability and generalisation across the fields of computer science, linguistics, motor learning, visual perception and formal education.</p> <p><strong>Wax on, wax off</strong></p> <p>The researchers found that there are at least four kinds of variability, including:</p> <ul> <li><strong>Numerosity</strong> (set size), which is the number of different examples; such as the number of locations on the tennis court a served ball could land</li> <li><strong>Heterogeneity</strong> (differences between examples); serving to the same spot versus serving to different spots</li> <li><strong>Situational</strong> (context) diversity; facing the same opponent on the same court or a different component on a different court</li> <li><strong>Scheduling</strong> (interleaving, spacing); how frequently you practice, and in what order do you practice components of a task</li> </ul> <p>“These four kinds of variability have never been directly compared—which means that we currently don’t know which is most effective for learning,” says Raviv.</p> <div class="newsletter-box"> <div id="wpcf7-f6-p191362-o1" class="wpcf7" dir="ltr" lang="en-US" role="form"> </div> </div> <p>According to the ‘Mr Miyagi principle’, inspired by the 1984 movie <em>The Karate Kid</em>, practising unrelated skills – such as waxing cars or painting fences – might actually benefit the learning of other skills: in the movie’s case, martial arts.</p> <p><strong>Lemon or lime?</strong></p> <p>So why does including variability in training slow things down? One theory is that there are always exceptions to the rules, which makes learning and generalising harder.</p> <p>For example, while colour is important for distinguishing lemons from limes, it wouldn’t be helpful for telling cars and trucks apart. Then there are atypical examples – such as a chihuahua that doesn’t look like a dog, and a fox that does, but isn’t.</p> <p>So as well as learning a rule to make neural shortcuts, we also have to learn exceptions to these rules, which makes learning slower and more complicated. This means that when training is variable, learners have to actively reconstruct memories, which takes more effort.</p> <p><strong>Putting a face to a name</strong></p> <p>So how do we train ourselves and computers to recognise faces? The illustration below is an example of variations of a fox for machine learning. Providing several variations – including image rotation, colour and partial masking – improves the machine’s ability to generalise (in this case, to identify a fox). This data augmentation technique is an effective way of expanding the amount of available data by providing variations of the same data point, but it slows down the speed of learning.</p> <p>Humans are the same: the more variables we’re presented with, the harder it is for us to learn – but eventually it pays off in a greater ability to generalise knowledge in new contexts.</p> <p>“Understanding the impact of variability is important for literally every aspect of our daily life. Beyond affecting the way we learn language, motor skills, and categories, it even has an impact on our social lives.” explains Raviv. “For example, face recognition is affected by whether people grew up in a small community (fewer than 1000 people) or in larger community (over 30,000 people). Exposure to fewer faces during childhood is associated with diminished face memory.”</p> <p>The learning message for both humans and AI is clear: variation is key. Switch up your tennis serve, play with lots of different dogs, and practice language with a variety of speakers. Your brain (or algorithm) will thank you for it… eventually.</p> <p><img id="cosmos-post-tracker" style="opacity: 0; height: 1px!important; width: 1px!important; border: 0!important; position: absolute!important; z-index: -1!important;" src="https://syndication.cosmosmagazine.com/?id=191362&amp;title=The+variation+advantage%3A+how+to+master+tennis%2C+learn+a+language%2C+or+build+better+AI" width="1" height="1" /></p> <div id="contributors"> <p><em><a href="https://cosmosmagazine.com/people/behaviour/the-variation-advantage-how-to-master-tennis-learn-a-language-or-build-better-ai/" target="_blank" rel="noopener">This article</a> was originally published on <a href="https://cosmosmagazine.com" target="_blank" rel="noopener">Cosmos Magazine</a> and was written by <a href="https://cosmosmagazine.com/contributor/qamariya-nasrullah" target="_blank" rel="noopener">Qamariya Nasrullah</a>. Qamariya Nasrullah holds a PhD in evolutionary development from Monash University and an Honours degree in palaeontology from Flinders University.</em></p> <p><em>Image: Getty Images</em></p> </div>

Technology

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Why a cruise is the best way to visit Cuba

<p>It’s the world’s latest travel hotspot, but getting around in Cuba can still be quite tricky. That’s why a cruise is the smart way to go.</p> <p><strong>It’s easier</strong></p> <p>One of the best things about Cuba is that it is still largely off the tourist map. But while this is a plus, it can also have some negative aspects. It can be difficult to organise travel in Cuba as many hotels or tour operators don’t have international websites. It can also be difficult to pay as many places don’t accept international credit cards. A cruise takes care of everything you need for travelling with almost no effort from you. Just buy your ticket and hop onboard.</p> <p style="text-align: center;"><strong><img width="498" height="245" src="https://oversixtydev.blob.core.windows.net/media/36541/image__498x245.jpg" alt="Image_ (281)"/><br /></strong></p> <p><strong>It covers more of the country</strong></p> <p>Transport in Cuba can be hit and miss. Getting around Havana and between the major destinations is relatively easy, but if you want to go off the beaten track you could be on your own. Domestic flights are limited and can be expensive, while long distance buses can be confusing (or downright impossible). Large cruise ships will call at all the major ports and take you between them with absolute ease. If you want to explore more remote parts of the country, a small ship cruise is your own private form of transportation. You’ll also save time, because the ship will be sailing while you’re asleep!</p> <p style="text-align: center;"><strong><img width="498" height="245" src="https://oversixtydev.blob.core.windows.net/media/36542/image__498x245.jpg" alt="Image_ (282)"/><br /></strong></p> <p><strong>It’s better value</strong></p> <p>Even though it’s a developing country, Cuba can be surprisingly expensive. As more tourists arrive, some local providers are making the most of it and raising their prices. There are a limited number of hotel rooms and tour operators, so in high season you will find that the prices skyrocket as eager travellers struggle to secure their spot. On a cruise, you know the price upfront and everything is included. When you break down your fare on a per day basis, you’ll find that it’s one of the cheapest ways to see Cuba.</p> <p><strong>It takes care of the logistics</strong></p> <p>Did you know Wi-Fi is almost non-existent in Cuba? Or that it can be impossible to find an ATM that will take your international bankcard? Having a ship as your home base, as opposed to a hotel, means you have access to all the facilities you will need. You can check your email, get money out or purchase some basic necessities hassle free. A ship gives you the best of both worlds – all the colour and culture of Cuba with the convenience of a global chain when you need it.</p> <p>Have you visited Cuba? Share your experience in the comments below.</p>

Cruising

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9 more seniors card discounts to take advantage of

<p>You’d be forgiven for thinking we’d already<a href="http://www.oversixty.com.au/finance/retirement-income/2016/11/10-surprising-seniors-card-discounts/"><strong> <span style="text-decoration: underline;">scraped the bottom of the barrel</span></strong></a> when it comes to <a href="http://www.oversixty.com.au/finance/retirement-income/2017/01/more-surprising-seniors-card-discounts/"><strong><span style="text-decoration: underline;">Senior’s Card discounts</span> </strong></a>in Australia. But the truth of the matter is we’ve hardly scratched the surface. Here are 10 more sweet savings.</p> <p><strong>1. Funfields</strong></p> <p>This theme park in Whittlesea is a great day out for the whole family, and Senior’s Card holders have the bonus of receiving a <a href="https://www.seniorsonline.vic.gov.au/seniors-card/discount-directory/discounts/Funfields-Melbourne"><strong><span style="text-decoration: underline;">38 per cent discount</span></strong></a> on Day Passes.</p> <p><strong>2. Jenolan Caves</strong></p> <p>Seniors who are looking to unleash their inner-Indiana Jones can enjoy 10 per cent off the standard cave tour (Adult Wonder Pass) at <a href="http://www.jenolancaves.org.au/"><strong><span style="text-decoration: underline;">Australia’s most famous caves</span></strong></a>.</p> <p><strong>3. Donut King</strong></p> <p>A range of Donut King outlets across NSW offer two free cinnamon donuts with any beverage purchase. For more information on this offer, <a href="http://www.seniorscard.nsw.gov.au/discounts/"><strong><span style="text-decoration: underline;">click here</span></strong></a>.</p> <p><strong>4. Resort holiday</strong></p> <p>Looking for a coastal NSW getaway? <a href="http://www.archerresort.com.au/"><span style="text-decoration: underline;"><strong>Nowra’s Archer Resort</strong></span></a> is offering Senior’s Card holders a nice 10 per cent discount on all accommodation, plus breakfast.</p> <p><strong>5. Pet care products</strong></p> <p>Have a four-legged friend to look after? Hanrob locations across NSW including Heathcote and Mascot are offering a <a href="http://www.hanrob.com.au"><strong><span style="text-decoration: underline;">10 per cent discount</span></strong></a> on products.</p> <p><strong>6. Walhalla Gold Mine</strong></p> <p>Senior’s Card holders in Victoria can experience 150 years of history at the <a href="https://www.seniorsonline.vic.gov.au/seniors-card/discount-directory/discounts/Walhalla-Gold-Mine-Gippsland"><span style="text-decoration: underline;"><strong>Walhalla Gold Mine Long Tunnel Extended Mine tour,</strong></span></a> for just $10 per person.</p> <p><strong>7. National Motor Museum</strong></p> <p>Rev-heads visiting South Australia will be overjoyed to learn they can get discounted entry to the <a href="http://www.seniorscard.sa.gov.au/"><span style="text-decoration: underline;"><strong>National Motor Museum</strong></span></a> with their Senior’s Card.</p> <p><strong>8. Interesting art</strong></p> <p>Feel as though your lounge room could use a bit of a spruce up? <a href="https://secure.communities.qld.gov.au/chiip/businessSearch/SearchDetails.aspx?OutletID=31002"><span style="text-decoration: underline;"><strong>Queensland’s Alpha31 Art Gallery &amp; Sculpture Garde</strong></span></a> is offering a 10 per cent discount on art purchases.</p> <p><strong>9. Dry Cleaning</strong></p> <p>Spilled a glass of vino on your favourite shirt? <a href="https://www.seniorscard.wa.gov.au/discounts/discount-details/?id=a21a2444-67ef-e611-80ec-000d3ae07082"><span style="text-decoration: underline;"><strong>WA’s Dry Cleaning Laundry Hub</strong></span></a> is offering Senior’s Card holders a generous 10 per cent discount on all dry-cleaning services.</p> <p>Do you know of more discounts to add? Share in the comment section below.</p> <p><strong>Related links:</strong></p> <p><span style="text-decoration: underline;"><em><strong><a href="http://www.oversixty.com.au/lifestyle/retirement-life/2017/01/retirement-checklist/">Checklist to make your retirement years your best yet</a></strong></em></span></p> <p><span style="text-decoration: underline;"><em><strong><a href="http://www.oversixty.com.au/lifestyle/relationships/2017/01/tips-for-making-new-friends-later-in-life/">Tips for making new friends later in life</a></strong></em></span></p> <p><span style="text-decoration: underline;"><em><strong><a href="http://www.oversixty.com.au/lifestyle/retirement-life/2017/01/hobbies-that-boost-brainpower/">3 fun hobbies that can boost your brainpower</a></strong></em></span></p>

Retirement Income

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4 advantages of at-home aged care

<p>We’d all love to grow old in the comfort of our own homes, but the sad fact is that many of us will require professional care in our old age, or have to organise care for a loved one. From medical assistance to help around the house, we take a look at why in-home care could be the answer.</p> <p>“Our research shows that 90% of seniors want to continue to live in their own homes,” Founder of <a href="http://www.homeinstead.com.au/" target="_blank"><strong><span style="text-decoration: underline;">Home Instead Senior Care</span></strong></a> Martin Warner tells Over60. “In-home care focuses on building the individual’s strengths and providing assistance to ultimately help them maintain their independence and overall wellbeing and allows people to continue to make valuable contributions to their community and feel a sense of purpose.”</p> <p>From cost to comfort and everything in between, here are four reasons you should consider in-home care.</p> <ol> <li><strong>Independence.</strong> As we’ve <a href="/health/caring/2016/09/tips-to-cope-with-losing-independence-with-age/" target="_blank"><strong><span style="text-decoration: underline;">mentioned previously</span></strong></a>, maintaining self-sufficiency in old age is a real concern for seniors, with many revealing they fear loss of independence more than death. Being able to stay in your own home is not only more convenient, but it means not having to completely adjust your lifestyle by uprooting and relocating to a residential facility, potentially moving away from friends and family.</li> <li><strong>Individual care.</strong> While in your home, your carer is looking after you and only you, meaning you’ll be cared for one-on-one based on your exact needs. “While some in-home care providers are non-medical, others provide care for seniors with a number of mental and physical issues such as dementia, arthritis, diabetes, Parkinson’s and more,” Warner says.</li> <li><strong>Comfort.</strong> While independence is a huge motivator for people making the choice between home care and residential care, comfort is also a major factor. No one wants to leave the comfort of their own home, and it can actually be better for your mental and physical health not to. “Adults aging in place exhibited better levels of cognition, better functioning in daily living activities, decreased levels of depression, and lower levels of incontinence compared to older adults aging in nursing home settings,” a <a href="http://www.ncbi.nlm.nih.gov/pubmed/15897796" target="_blank"><strong><span style="text-decoration: underline;">2005 study</span></strong></a> found.</li> <li><strong>Affordability.</strong> Because you’re in your own home, there are no room fees, cleaning costs or other facility charges. Plus, in-home rates are charged differently to residential fees. “Costs are charged on an hourly basis and can therefore be far more affordable than the costs associated with nursing homes,” Warner explains.</li> </ol> <p>Have you thought about aged care options for yourself or a loved one yet? Share your thoughts with us in the comments below.</p> <p><strong>Related links:</strong></p> <p><a href="/health/caring/2016/09/how-to-get-the-best-hospital-care/"><strong><em><span style="text-decoration: underline;">How to get the best hospital care</span></em></strong></a></p> <p><a href="/health/caring/2016/09/tips-to-cope-with-losing-independence-with-age/"><em><span style="text-decoration: underline;"><strong>Tips to cope with losing independence with age</strong></span></em></a></p> <p><a href="/health/caring/2016/08/how-to-make-your-home-more-age-friendly/"><strong><span style="text-decoration: underline;"><em>How to make your home more age-friendly</em></span></strong></a></p>

Caring

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The surprising advantages of being invisible as you age

<p><em><strong>Del Dennis, 72, is wife to William, mother to five amazing women and “grammie" to 12 grandchildren. She has been involved in the health industry for 43 years.</strong></em> </p> <p><img width="211" height="281" src="https://oversixtydev.blob.core.windows.net/media/25912/del-dennis_211x281.jpg" alt="Del Dennis" style="float: left;"/>It would appear that with the onset of the ageing process, we seniors are discovering the reality of invisibility before we actually expire. The grey hair, crinkles, and crags born of living a long life are not able to be disguised. The light above the mirror in our bathrooms reveals in minute detail, the bagging and sagging that is inevitable from the passage of the years.</p> <p>And it appears that such facial images, along with the accompanying physical effects of ageing, leaves people in no doubt that the years have taken their toll. When we are encountered, it registers in a nanosecond to the observer: their eyes avert and glaze over, and it would appear as if their hearing has been affected. This response seems to cause anxiety to many of our senior citizens.</p> <p>But there are many advantages to appearing invisible. First and foremost is that we should not need any sort of recognition from anybody. We know who we are. We have been fortunate enough to have experienced a great many of life's experiences. We have worked in our chosen careers, raised our families and participated actively in civic responsibilities.</p> <p>Often these attributes were achieved by making mistakes, shedding buckets of tears and devouring decent portions of humble pie. Some of life's puddles we easily jumped, but a great many of them we seriously miscalculated. We know how it feels to be mentally wet and soggy!</p> <p>We are in a place where we would not trade a beautiful face and younger body for what we have earned and lived through. We have earnt our wrinkles and now regard them as “reward points”. We can cash them in by sharing experiences with others, if that is what they wish, by being silent and just listening if somebody has a need to debrief, by enjoying the space when one realises that they have been judged to have little they could offer to a conversation.</p> <p>We realise the value of listening to other voices: the voice from our heart and the messages from our brains. They are now the jewels in our lives. Stretch and exercise them and a new visibility will become apparent. Not a shallow cosmetic visibility, but a visibility that is rich, deep and satisfying.</p> <p>It could not be imagined that women of the calibre of Dame Judi Dench, Mother Teresa, Maggie Smith, or men like Nelson Mandela, Elie Wiesel, Gandhi or Morgan Freeman, would ever be regarded as invisible. On the contrary, they, and countless others, shine as beacons in the world.</p> <p>An older person can possess a sense of dignity that often comes with age and a poise not unlike that of an old oak tree that has weathered many seasons.</p> <p>We should face the world with pride. We have earned it.</p> <p><em><strong>If you have a story to share please get in touch at <a href="mailto:melody@oversixty.com.au">melody@oversixty.com.au</a></strong></em></p> <p><strong>Related links: </strong></p> <p><em><span style="text-decoration: underline;"><strong><a href="/health/mind/2016/08/poem-captures-what-it-is-like-to-get-older/">Poem captures what it’s like to get older</a></strong></span></em></p> <p><em><span style="text-decoration: underline;"><strong><a href="/health/caring/2016/06/18-great-quotes-about-ageing/">18 great quotes about ageing</a></strong></span></em></p> <p><em><span style="text-decoration: underline;"><strong><a href="/lifestyle/retirement-life/2016/07/can-we-really-take-old-age-one-day-at-a-time/">Can we really take old age one day at a time?</a> </strong></span></em></p>

Mind

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Government benefits to take advantage of in retirement

<p>The transition from work to retirement can be quite daunting, especially when you consider the prospect of meeting health challenges on a limited income.  The good news is the government has a range of benefits in place to help you meet your health needs.</p> <p>That being said, there’s much more that goes into a happy, healthy retirement than government benefits. It’s important that you’re in a financial position to enjoy these benefits, rather than rely upon them. In this <a href="https://vimeo.com/168128506" target="_blank"><strong><span style="text-decoration: underline;">video from super fund Equip</span></strong></a>, Kim Watkins takes us though what we need to do to have a comfortable retirement.</p> <p>We’re going to take a look at the major government bonuses you should take advantage of when you’re finished working. These benefits are designed to make it easier to stay healthy into retirement and enjoy a happy, healthy retired life.</p> <p><strong>1. Commonwealth Seniors Health Card</strong> – Even if you’re a self-funded retiree, once you’ve reached a certain age you may be eligible for the Commonwealth Seniors Health Card. This card gives you access to cheaper prescriptions and potentially bulk-billed GP consultations.</p> <p><strong>2. Medicare Safety Net</strong> – This is particularly useful if you’re seeing doctors and specialists at multiple times over the course of a year. The Medicare safety net reduces your out-of-pocket expenses once you’ve spent a certain amount of money, which will help you save.</p> <p><strong>3. Pharmaceutical Benefits Scheme (PBS) Safety Net Card</strong> – You can apply for a Medicare PBS safety card at a pharmacy, and what it’s basically designed to do is create a ‘safety net’ threshold to help households cover the cost of medicines. Once the threshold has been passed, medicines will be much less expensive of free for the rest of the year.</p> <p><strong>4. Early detection programs and free immunisations</strong> – Your doctor should have information on what you’re specifically entitled to, but older Australians can generally get free vaccinations against influence and pneumococcal disease, free  screenings for bowel cancer and free breast screenings. Older women are also entitled to Pap smears and people who qualify can receive free prostate cancer tests. For more information <a href="http://www.cancerscreening.gov.au/" target="_blank"><strong><span style="text-decoration: underline;">click here</span></strong></a>.</p> <p><strong>5. Annual health assessment</strong> – Once you’ve passed the age of 75 (or 55 for Aboriginal and Torres Strait Islanders) you’re entitled to a free annual health assessment from your doctor. That being said, if they do not bulk bill you may have to pay the gap.</p> <p><strong>6. Home medication review</strong> – If you’re living at home and taking more than five medications a day, you’re entitled to a home medication review. This can help you use your medicines more effectively and also makes sure you avoid any unwanted side effects. If you would like to take the review, talk to your GP or pharmacist about arranging it.</p> <p>Were you aware of these government benefits? Do you take advantage of any of them, do you think now that you do know you will?</p> <p>Let us know in the comments below.</p> <p><em><strong><span style="text-decoration: underline;"><a href="http://www.equipsuper.com.au/" target="_blank">Equip</a></span></strong> manages $7 billion of investments for members working across a wide range of Australian industry sectors. This <strong><a href="http://www.equipsuper.com.au/" target="_blank"><span style="text-decoration: underline;">superannuation fund</span></a></strong> has been providing strong investment performance and has been a reliable provider of retirement benefits for over 80 years.</em></p> <p><strong>Related links:</strong></p> <p><a href="/finance/retirement-income/2016/06/changes-to-superannuation-for-seniors/"><span style="text-decoration: underline;"><em><strong>Super is changing. Should I be concerned?</strong></em></span></a></p> <p><a href="/finance/retirement-income/2016/05/how-to-make-retirement-income-go-the-distance/"><span style="text-decoration: underline;"><em><strong>How to make retirement income go the distance</strong></em></span></a></p> <p><a href="/finance/retirement-income/2016/05/poll-suggests-bleak-retirement-outlook-for-baby-boomers/"><span style="text-decoration: underline;"><em><strong>Poll suggests bleak retirement outlook for baby boomers</strong></em></span></a></p>

Retirement Income

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How to take advantage of house price spike

<p>As median house prices continue to climb across most capital cities, asset-rich, cash-poor seniors are missing an opportunity for improved living standards by building on existing home equity.</p> <p>That’s the contention of retirement finance expert and author Rachel Lane, who suggests that by selling while house prices are high and moving into more affordable accommodation, certain seniors could boost their cash reserves by tens to hundreds of thousands of dollars.</p> <p>“While housing affordability is generally considered a young person’s issue restricting entry to the market, it is also a major problem for those that do own a home but rely on a low weekly income,” Ms Lane says, “The Australian Government Productivity Commission’s recent report Housing Decisions of Older Australians found more than 90 per cent of homeowner Age Pension recipients currently under the ASFA threshold for modest retirement standards could reach that benchmark over the rest of their lives by using their home equity.”</p> <p>“The report also suggested households aged 65 to 74 years had on average $480,000 in home equity, which compared to the cost of a more affordable home in the vicinity of $200,000-$300,000 represents a significant gap of potential cash reserve.”</p> <p>So by taking advantage of their existing home equity while house prices remain high, seniors could boost their cash reserves considerably. With this excess capital they could do a range of things like diversify in other property, shares or annuities.</p> <p>Ms Lane is also quick to dispel concerns that seniors seeking more affordable housing options may find their choices severely limited in a market where prices are currently high.</p> <p>”Senior homeowners looking to downsize needn’t be competing in the private market against homeowners and investors, which is a common fear, as there are a variety of traditional and new home options to suit,” Ms Lane says. “Lifestyle-focused manufactured home estates for example are one of the newest catering to this specific market. “</p> <p>“While the homes on offer are of an increasingly high quality, the entry price point is kept low since residents lease, rather than own the land, with weekly fees in the $120-$160 range. This pricing model eliminates the need to pay stamp duty, entry and exit fees and in some cases, the resident is then eligible for rent assistance… I would urge seniors to pay close attention to median house prices in their area and affordable housing price points like these to get a better sense of the type of cash reserves they might be able to access.”</p> <p><strong>Related links:</strong></p> <p><span style="text-decoration: underline;"><em><strong><a href="/finance/retirement-income/2016/01/a-third-of-women-are-retiring-in-poverty/">A third of Aussie women are retiring in poverty</a></strong></em></span></p> <p><span style="text-decoration: underline;"><em><strong><a href="/finance/retirement-income/2016/01/10-exciting-retirement-adventures/">10 exciting retirement adventure ideas</a></strong></em></span></p> <p><span style="text-decoration: underline;"><em><strong><a href="/finance/retirement-income/2016/01/should-you-withdraw-all-of-your-super-at-once/">Is it a bad idea to withdraw all of your super at once?</a></strong></em></span></p> <p> </p>

Retirement Income

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