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The biggest faux pas for self-funded retirees

Whether you have been retired for some time or are still looking forward to the time you can step back, chances are there are important considerations you may have overlooked. From planning and pensions to family and housing, these are the biggest self-funded retirement mistakes I come across, and some insights into how to avoid repeating them: <ol> <li>Lack of a plan</li> </ol> Not having a retirement plan is perhaps the most basic faux pas, but often the most costly. A detailed plan should cover things like: <ul> <li>When you AND your partner will retire </li> <li>Where you will live (you may want to downsize, relocate, seek assisted living)</li> <li>Anticipated living costs (living situation, health, lifestyle)</li> <li>How you will spend your time (hobbies, travel, volunteering, time with family)</li> <li>Strategies to maximise investments and superannuation</li> <li>Tax minimisation strategies</li> </ul> Remember: failing to plan = planning to fail. <ol start="2"> <li>Poor planning</li> </ol> Having a plan is the starting point, but it won’t get you far if it’s incomplete, not updated as circumstances change, or omits critical factors. For couples, not considering age differences is a big mistake. One partner retiring before the other can have big shifts on financial and tax dynamics and even the relationship itself. Then there is end-of-life care, particularly if the younger partner is still working. Not building in a safety buffer is another no-no. Too many retirees have been caught out by the high inflation of recent years, having calculated their anticipated income needs on much lower living costs. Balance short-term and long-term goals: being overly conservative early on can limit your financial situation down the track. And no plan is complete without contingencies for worst case scenarios – insurances, protections, back-up options. <ol start="3"> <li>Insecure housing </li> </ol> Government data has long shown major differences in quality of life for retirees who own their home versus those who don’t. Homelessness or insecure housing, the mercy of the rental market, and inability to customise your home as you age or if you need specialised support with disability or health issues are some of the challenges renters face. Furthermore, public estimates of how much the average Australian needs to retire typically assume home ownership – meaning rent is not part of that calculation. That’s a huge living cost you may not have factored into your retirement planning. <ol start="4"> <li>Unclaimed pensions</li> </ol> Contrary to popular belief, self-funded retirement and claiming a pension are not mutually exclusive. You may be eligible for a part-pension, calculated pro-rata according to the value of your assets and other income. Claiming a part-pension, no matter how small it may be, reduces how much income you need to draw down from super – making it last longer. Don’t fall into another common trap when applying – overestimating your assets. It’s easy to assume your non-monetary assets are worth more than what they really are, reducing how much pension you receive or negating your eligibility altogether. <ol start="5"> <li>Depleted Bank of Mum and Dad</li> </ol> With home ownership increasingly out of reach for younger adults, the Bank of Mum and Dad is often sought to bridge the gap. How you do so will impact your own situation. Giving more than you can afford can leave you overstretched. Missed loan repayments could see you fall behind on your own bills. Not putting agreements in writing can lead to disputes down the track. Having a loan guarantee called in could see you homeless. Be wise about decisions you make here and don’t let heartstrings cloud your judgement. <ol start="6"> <li>Suffering in silence</li> </ol> Elder abuse is a sad but significant problem. Given they have money in the bank, self-funded retirees are often the most vulnerable. Its effects can be far-reaching, impacting your mental and physical health, financial wellbeing, social interactions, and quality of life. Be aware of <a href="https://www.oversixty.com.au/finance/retirement-income/are-you-a-victim-of-elder-abuse-without-even-realising-it">the signs that something isn’t right</a>. If you recognise it happening to you – or someone you know – speak up and seek help. <ol start="7"> <li>Forgoing professional advice</li> </ol> How much of the above details did you already know? Chances are, not all of them. And that’s just the tip of the iceberg. Money is a complicated business and you simply don’t know what you don’t know, which is why seeking independent, tailored advice from a professional is so important. A good financial advisor can help you identify new opportunities and manage risks you may not have considered, limit expenses and also work with your accountant to minimise your tax. Helen Baker is a licensed Australian financial adviser and author of On Your Own Two Feet: The Essential Guide to Financial Independence for all Women. Helen is among the 1% of financial planners who hold a master’s degree in the field. Proceeds from book sales are donated to charities supporting disadvantaged women and children. Find out more at <a href="http://www.onyourowntwofeet.com.au/">www.onyourowntwofeet.com.au</a> Disclaimer: The information in this article is of a general nature only and does not constitute personal financial or product advice. Any opinions or views expressed are those of the authors and do not represent those of people, institutions or organisations the owner may be associated with in a professional or personal capacity unless explicitly stated. Helen Baker is an authorised representative of BPW Partners Pty Ltd AFSL 548754. Image credits: Shutterstock

Retirement Income

"Lost everything": Retirees left homeless after houseboat destroyed

Two grandparents from South Australia have lost everything after a tree fell on their houseboat during a wild storm. Pam, 77, and David, 82, moved into their two-bedroom houseboat on the Murray River when they first retired over 20 years ago, after finally living out their dream of living on the water. During a storm on February 13th, when their houseboat was moored about 700m from the Renmark boat ramp, their lives were changed forever when a tree fell through their roof. Their granddaughter Shenay Harris said it was a miracle the pair escaped with only minor injuries. “They’re both sitting in their armchairs next to each other. My nan was actually stuck. Her legs were pinned from all the rubble of the roof caving in, and my pop managed to be able to stand up and reach for the phone to call emergency services,” Harris told <a href="https://7news.com.au/news/south-australian-grandparents-lose-everything-after-tree-falls-on-houseboat-in-murray-river-during-storm--c-13615764" target="_blank" rel="noopener">7News</a>. “Looking at the boat and where they were sitting and everything, we have no idea how they are still with us. It’s just absolutely amazing that they’re still here, and they’re OK.” Shenay said her grandparents were now feeling lost about their future, while also grieving the loss of their retirement home. “My pop, he’s absolutely shattered. He’s said to us ‘it’s all over now’ ... (we’re) trying to reassure him (that) ‘no, it’s just a new beginning’,” Harris said. “They’ve been on that boat for 23 years, so it’s been my whole childhood and life with them living on the boat." The houseboat was not insured at the time of the accident, leaving both of the retirees homeless, with no hope for a replacement boat or a payout to get them back on their feet. “They’ve literally just lost everything they’ve got, you know, no assets, nowhere to go, no money,” Shenay said. An <a href="https://www.gofundme.com/f/riverland-houseboat-tragedy-pamelas-joy?cdn-cache=0" target="_blank" rel="noopener">online fundraiser</a> has been set up to support the couple as they figure out the next stage of their life, so far raising $3,000. “They’re both pensioners, they’ve really got nothing to their name now, having lost the boat. So really just to get them back on their feet.” Image credits: GoFundMe / 7News

Retirement Life

Retiree threatened with $200,000 fine over home egg business

A Queensland retiree has insisted that he will continue to sell eggs from the chooks in his backyard despite authorities threatening him with a fine up to $200,000. Murray Koina said that when he first received the email about his business he thought it was a scam and ignored it. It wasn't until they pushed for him to stop that he immediately realised things were getting serious. "They said it was a health issue, someone could get poisoned by an egg," Murray told Today show hosts Karl Stefanovic and Sarah Abo. "Well my mother grew eggs from when I was a baby and we've eaten them and given them away and sold them and I don't think anyone's died yet - and I'm 73." Murray added that he could get a licence to avoid the fine and continue his little business, but that costs $630 upfront and then around $450 every year to renew it, so it's just not worth it. "I sell around a dozen cartons a week at $4 a dozen so that wouldn't make sense," he said. "I can't say what I really feel about it, but I'm really, you know, p---ed off." Image: Today

Caring

Downsizing cost trap awaits retirees – five reasons to be wary

<a href="https://theconversation.com/profiles/erika-altmann-361218">Erika Altmann</a>, <a href="https://theconversation.com/institutions/university-of-tasmania-888">University of Tasmania</a> It’s time to debunk the myth of zero housing costs in retirement if we want to understand why retirees resist downsizing. Retirees have at least five reasons to be wary of the costs of downsizing. Retirees living in middle-ring suburbs face frequent calls to downsize into apartments to free up larger allotments in these suburbs for redevelopment. Retirees who fail to downsize into smaller units and apartments are viewed as being a greedy, baby-boomer elite, stealing financial security from younger generations. It also makes sense to policymakers for retirees to move into less spacious accommodation and make way for high-density housing. Housing think-tank AHURI <a href="http://www.ahuri.edu.au/__data/assets/pdf_file/0021/14079/AHURI_Final_Report_No_286_Australian-demographic-trends-and-implications-for-housing-assistance-programs.pdf">fosters this view</a>. Yet seniors remain resistant to moving, in part because of the ongoing costs they would face. The concept of zero housing costs in retirement is based on a 1940s view of a well-maintained, single dwelling on a single allotment of land where the mortgage has been paid off. This concept is incompatible with medium- and high-density housing and refusing to acknowledge ongoing housing costs may cause significant poverty for retirees. <h2>Reason 1 – upfront moving costs are high</h2> When a house is sold the owner receives the sale funds minus the real estate and legal fees. When the same person then buys a different property to live in, they pay legal fees plus stamp duty. For cities such as Melbourne and Sydney, these costs are likely to exceed A$70,000. These high transfer costs may mean it is not cost-effective <a href="https://theconversation.com/why-older-australians-dont-downsize-and-the-limits-to-what-the-government-can-do-about-it-76931">for the person to move</a>. <h2>Reason 2 – levies are high</h2> Because apartment owners pay body corporate levies, people often assume this is just the same as periodic payment of rates, water, insurance and other costs. It is not. Fees remissions for low-income retirees for rates, power, insurance and water are difficult to apply within a body corporate environment. As a consequence, these are usually not applied to owners of apartments. The costs of maintaining essential services, such as mandatory fire-alarm testing, yearly engineering certification, lift and air-conditioning inspections, significantly increase ownership costs. When additional services are supplied, such as swimming pools, gyms and rooftop gardens, these also require periodic inspections. Garbage collection, cleaning, gardening, concierge and strata management services also <a href="https://eprints.utas.edu.au/cgi/users/home?screen=EPrint%3A%3AView&eprintid=23322">must be paid</a>. Owners of standard suburban homes choose whether they want these services, with those on fixed incomes going without them. Annual levies for apartment buildings vary, but expect to pay between $10,000 and $15,000. They <a href="https://www.strata.community/understandingstrata/faqs">may be more than this</a>. <h2>Reason 3 – costs of maintenance</h2> <figure class="align-right "><figcaption></figcaption></figure> Apartments are often sold as a maintenance-free solution for older people. The maintenance is not free. It needs to be paid for. Maintenance costs are higher in an apartment than a standard suburban home because there are more items and services to be maintained and fixed. Lifts and air conditioning need periodic servicing and fixing. This is in addition to the mandatory inspections listed above. <h2>Reason 4 – loss of financial security</h2> It is a mistaken belief that the maintenance costs that form part of the body corporate fee include periodic property upgrades. This relates to items that are owned collectively with other apartment owners. Major servicing at the ten-year mark and usually each five-to-seven years after that include painting, floor-covering replacement, and lift and air-conditioning repair or replacement. Major upgrades may also include garden redesign or other external building enhancement including <a href="https://eprints.utas.edu.au/cgi/users/home?screen=EPrint%3A%3AView&eprintid=23315">environmental upgrades</a>. All owners share these upgrade costs. Costs of upgrading the inside of an apartment (a bathroom disability upgrade, for example) are additional again. Once the body corporate committee members pledge funds towards an upgrade, all owners are required to raise their share of the funds, whether they can afford it or not. Communal choice outweighs an individual owner’s need to delay upgrade costs. Owners who buy apartments that are part of a body corporate effectively lose control of their future financial decisions. <h2>Reason 5 – loss of security of tenure</h2> Loss of security of tenure is usually associated with renters. However, the recent introduction of <a href="http://www.lpi.nsw.gov.au/__data/assets/pdf_file/0009/25965/Termination_of_a_strata_scheme_by_RG.pdf">termination legislation</a> in New South Wales gives other owners the right to vote to terminate a strata title scheme. When this occurs, all owners, including reluctant owners of apartments within that scheme, are compelled to sell. There are valid reasons why termination legislation is desirable, as many older apartment complexes are reaching the end of their useful life. Even so, as termination legislation is rolled out across the states, owner- occupiers effectively lose control of how long they will own a property for. They no longer have security of tenure, which means retirees may face an uncertain housing future in their old age. <h2>Downsizing raises poverty risks</h2> Because current data sets do not adequately take account of ongoing costs associated with apartment living, the effect of downsizing on individual households is masked. Downsizing retirees into the apartment sector creates ongoing financial stress for older people. Creating <a href="https://theconversation.com/it-will-take-more-than-piecemeal-reforms-to-convince-older-australians-to-downsize-51043">tax incentives to move</a> does not tackle these ongoing costs. Centrelink payments for of <a href="https://www.humanservices.gov.au/customer/services/centrelink/age-pension">$404 per week</a> are well below <a href="http://acoss.wpengine.com/poverty-2/">the poverty line</a>. Yet we expect retirees to willingly downsize and to be able to cede most of their Centrelink payments to cover high body corporate costs. Requiring retirees to downsize for the greater urban good will shift poverty onto retirees who could barely manage in their previously owned standard suburban home. Failing to understand the effect of high ongoing costs associated with apartment living and reinforcing the myth of zero housing costs in retirement will continue to lead to poor policy outcomes.<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/80895/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/erika-altmann-361218">Erika Altmann</a>, Property and Housing Management Researcher, <a href="https://theconversation.com/institutions/university-of-tasmania-888">University of Tasmania</a> Image credits: Getty Images 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/downsizing-cost-trap-awaits-retirees-five-reasons-to-be-wary-80895">original article</a>.

Retirement Income

How to spend time wisely – what young people can learn from retirees

<a href="https://theconversation.com/profiles/boroka-bo-1371004">Boróka Bó</a>, <a href="https://theconversation.com/institutions/university-of-essex-1291">University of Essex</a> For many young people, retirement is a blip on the radar, if not a total unknown. This is particularly true during our cost of living crisis, when investing and contributing more to your pension might fall down the priority list behind paying rent. Despite this, more and more young people are starting to think about retirement in <a href="https://www.forbes.com/advisor/retirement/the-forbes-guide-to-fire/">earlier ages</a>, with many focusing on their future quality of life and financial independence after they leave work. This can sometimes come at the expense of their wellbeing while they are still working, spending extremely frugally and focusing on the “hustle”, instead of enjoying the freedom and good times that could also characterise young adulthood. For my <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8681690/">new research</a>, I interviewed over 200 people and surveyed hundreds more to understand how they balance time and money. I focused on people going through major life transitions: recent retirees and new parents, and people preparing for those moments. While we expect retirees to have all the time in the world, I found that in reality, retirees are often pressed for time. Over a quarter of them feel <a href="https://link.springer.com/content/pdf/10.1007/s11205-015-1029-z.pdf">time poor</a>, with not enough hours left in the day for all they need to do. This is regardless of the amount of money they have. Although wealthy retirees generally have more control over their schedules, both rich and poor retirees are impacted by time poverty in older ages. It’s never too late (or too early) to start making the most of your time and living a better life. Here are some important lessons learned from my retirees’ journeys. <h2>Don’t chase money, let money chase you</h2> One of the biggest regrets among my <a href="https://betterdwelling.com/city/toronto/heres-torontos-richest-and-poorest-neighbourhoods-interactive/">less privileged</a> research participants was their inability to get as much education as they wanted when younger. Some left university or college early to support their families, or because they could not afford to continue. But all regretted not getting as much education as they needed to be competitive in the labour force later on. To make enough money, pick something and follow through: whether university or skilled technical trades, get good at something. Then, the money will follow. <h2>Worry about how you feel – not how you look</h2> When youth wanes, you are left with how you feel. In retirement, will you be in pain thanks to spending your life in hard labour or nonstop work? My interviewees made clear that when you prioritise making money over health – whether by necessity or by choice – you pay for this by having to give up your precious time in retirement. Some of my new retirees’ health recovery efforts included spending extra time with medical providers, and spending money and time on commuting to appointments. Women were doubly disadvantaged here as, unlike men, they continued to face societal pressures to look younger than their age. To avoid having to <a href="https://academic.oup.com/gerontologist/article/57/5/910/2632069?login=false">spend extra</a> time and money on health recovery in later life, focus on health preservation in earlier life. Sometimes you may need to to prioritise your own wellbeing above the needs of your employer, for example by taking time off for your physical or mental health. While this is a luxury currently not afforded to all, movements like “quiet quitting” are beginning to start a public conversation on this topic. <h2>Make your time count by sharing it with others</h2> We can “buy” time by exchanging money for tasks we do not wish to do. Consuming items can also have <a href="https://www.jstor.org/stable/pdf/24737120.pdf?addFooter=false">time costs</a>, as both shopping and learning to use new items takes time. Thanks to my retirees, I now also know that we can get more out of time when we share it with others. Time is what social scientists would call a “<a href="https://sociologicalscience.com/time-network-good/">network good</a>”. In other words, how we value time depends on the number of other people we can share our time with. All of my retired participants spoke of the need to build strong, healthy relationships while younger, to have friends we can share life with when older. Shared time leads to <a href="https://sociologicalscience.com/time-network-good/">greater emotional wellbeing</a> and happiness. <h2>Identify your passions early</h2> While nearly all of my retirees spent a considerable amount of time financially planning for retirement, almost as many regretted not planning ahead when it comes to cultivating hobbies and interests. This was particularly pressing for my wealthy retirees, as they faced a drop in their social status and loss of work friends when they retired. Starting new hobbies and interests once retired – out of necessity – can feel like extra work. Pursuing passions is <a href="https://www.tandfonline.com/doi/abs/10.1080/07053436.1995.10715491?casa_token=Puyxz2akU2oAAAAA:Gl6qIREhdxqfcm5fo0cJ6_5DLLjTCuEVPF7Da2JDyxVHNwbeq6N-9Hbc0nMLiKn-cO1fZfd8cKRi">necessary for wellbeing</a>, but this should be done before retirement, while it is purely for fun. <h2>Time is love</h2> Repeatedly, my interview participants gently reminded me that giving your time to another person is the biggest act of kindness we can do. This is because once you give your time away, you can never get it back. Be mindful of this as you give your time, to your friends, employers, acquaintances or to social media companies. Thanks to my participants, I now often ask myself: Does this company or organisation love me? Generally, the answer is no, at which point I also know they do not deserve much of my time. At the same time, when a friend, trusted mentor, teacher or stranger donates their precious time to me, I am aware that my appreciation and kindness can only ever partially repay them. My retired participants show that it is important to remain grateful for the time we share with each other while on this Earth. When the daily grind gets you down, remind yourself that time is love.<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/189340/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/boroka-bo-1371004">Boróka Bó</a>, Assistant professor in sociology, <a href="https://theconversation.com/institutions/university-of-essex-1291">University of Essex</a> Image credits: Getty Images 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/how-to-spend-time-wisely-what-young-people-can-learn-from-retirees-189340">original article</a>.

Money & Banking

7 hacks for retirees to make your money last longer

As Australians continue to live longer, the squeeze is on to make each dollar last longer – and never moreso than in retirement. <a href="https://www.aihw.gov.au/reports/life-expectancy-deaths/deaths-in-australia/contents/life-expectancy">Life expectancies in Australia</a> are now 85.4 years for women and 81.3 years for men. Meanwhile, the <a href="https://www.abs.gov.au/statistics/labour/employment-and-unemployment/retirement-and-retirement-intentions-australia/latest-release">average age at retirement</a> for all retirees is 56.3 years. That’s up to 29.1 years of retirement to be paid for without a salaried income. Thankfully, making money last longer is just possible, with the help of a few tips and tricks. <ol> <li>Embrace seniors’ discounts</li> </ol> It was once said that “it’s better to pay full price than to admit you’re a senior citizen”. Really? Who wouldn’t prefer the extra cash! Being “senior” opens the door to numerous discounts and freebies. If you haven’t already, apply for your eligible concession cards, including the <a href="https://www.servicesaustralia.gov.au/commonwealth-seniors-health-card">Commonwealth Seniors Health Card</a> (for discounted healthcare and prescriptions) and state or territory seniors card (for discounted/free vehicle registration, public transport and other services). Additionally, many businesses offer seniors discounts – insurers, retailers, attractions and more. But they may not advertise these discounts widely, so it pays to ask. <ol start="2"> <li>Maintain a plan</li> </ol> Having a plan and keeping it up to date ensures you don’t overdraw from super, losing the income-generating power of those funds and running out prematurely. I prefer a ‘savings and investment plan’, which sounds nicer and is more comprehensive than a ‘budget’. Incorporate your goals, expenses, assets, and incomes – visibility keeps you disciplined and allows you to act quickly if something is amiss. <ol start="3"> <li>Spend points</li> </ol> Many retirees have held their current credit card, store cards and frequent flyer account for years – decades even. How many points are sitting there unused? These points generally aren’t transferable, so can’t be gifted in your will. It’s use them or lose them! Points can pay for everything from groceries to homewares, travel and even your Christmas shopping – conserving your cash and super. <ol start="4"> <li>Get comfortable</li> </ol> Rightsizing your home sooner rather than later has numerous benefits, such as: <ul> <li><a href="https://www.ato.gov.au/Individuals/Super/Growing-and-keeping-track-of-your-super/How-to-save-more-in-your-super/Downsizer-super-contributions/">downsizer super contributions tax breaks</a> to boost superannuation earnings.</li> <li>paying less for your new home, since property prices generally track upwards whilst investing the extra equity.</li> <li>avoiding complications of moving later in life when your health or mobility may not be as good.</li> <li>avoiding a mistake - using the time to find exactly what you want, where you want, rather than being under pressure and having to spend stamp duty again</li> </ul> Home ownership is also a major determinant of how comfortable your retirement will be. And given the current state of Australia’s rental market, selling your home to move into rented accommodation could prove costly. <ol start="5"> <li>Retain protections</li> </ol> Protections are typically a cost – insurance premiums, legal fees, memberships etc. However, the cost of not having them in place can be far higher. Plus, in the case of insurances, prices and restrictions increase with age – meaning you pay more but get less value for that spend, compared with the more favourable terms of a long-held policy. By all means adjust your protections to suit your current and future needs. But think twice before trying to save a few dollars by discarding insurances or cancelling sports and social memberships that keep you active. <ol start="6"> <li>Update estate planning</li> </ol> Considerable costs (and heartache) inevitably hit a grieving partner and family where someone dies without having their affairs properly in order: <ul> <li>funeral costs and medical bills pile up if funds haven’t been allocated for them.</li> <li>delayed payouts from insurances and super if those details aren’t readily available. </li> <li>loss of economies of scale (living costs per person are cheaper for couples than singles). </li> <li>unexpected taxes, debts, and liabilities.</li> <li>legal conflicts arise where wills are unclear or outdated.</li> <li>a person’s wishes may go overlooked or be challenged where guardianships and power of attorney were not devised.</li> </ul> In extreme cases, the surviving spouse may be forced to sell their home to pay associated costs or because they can’t afford to maintain it alone. <ol start="7"> <li>Seek good advice</li> </ol> Just like a good doctor helps you stay physically and mentally healthy, a good financial adviser helps your finances stay healthy, tactically smart and use strategies to reduce tax which stretches your money further. Be sure their accreditation is up-to-date, and they have experience working with retirees (not just those planning for it during their working years). Often, the cost of this advice pales in comparison to the tax saved and additional income earned through benefits, structures and plans you never even knew about. What’s not to love about that! Helen Baker is a licensed Australian financial adviser and author of the new book, On Your Own Two Feet: The Essential Guide to Financial Independence for all Women (Ventura Press, $32.99). Helen is among the 1% of financial planners who hold a master’s degree in the field. Proceeds from book sales are donated to charities supporting disadvantaged women and children. Find out more at <a href="http://www.onyourowntwofeet.com.au">www.onyourowntwofeet.com.au</a> Image credits: Getty Images

Retirement Income

Essential money conversations retirees should have with family

Discussions about funding retirement, aged care and inheritances may be uncomfortable. However, not having them risks your wishes going unmet and family conflicts where details aren’t clear. Hence having discussions about money while you are able to is one of the best (and cheapest!) investments you can make – for both you and your family. Precisely what those discussions entail will depend on your circumstances – and theirs. Yet many points apply almost universally: What matters to you Even the best laid plans mean nothing if those responsible for enacting them don’t know what they are or understand your reasoning behind them. Your will provides a legal overview of who gets what upon your death, while nominated beneficiaries determine how assets are divided from superannuation and some other structures. A separate letter of wishes can informally share your wishes, covering more than just legalities. Sharing this before your death allows family to clarify your wishes and ask questions. Go through: <ul> <li>How your money should be managed now and longer term (e.g., you may want money set aside for grandchildren’s education, or have instructions for a dependent’s ongoing care).</li> <li>Funeral arrangements; cremation or burial; where you will be laid to rest.</li> <li>Plans for anyone other than direct family, charities etc.</li> <li>Any non-negotiables among your wishes.</li> </ul> Partner protections Ensure your partner knows how they will be looked after if they outlive you. Similarly, your kids should know what if any support they will need to provide – especially important for blended families. Where beneficiaries have divorced/separated, will you exclude their ex from your estate? Are your records updated to reflect this? Ensure everyone knows the difference between joint tenants and tenants in common for property owners – only one automatically leaves your share of the property to your co-owner. Health matters How do you want to be looked after in your final years? Don’t assume your loved ones already know everything. Communicate your wishes, small and large – medications, dietary requirements, retirement living, palliative care, resuscitation. Discuss whether power of attorney and enduring guardianship are needed should you be unable to make decisions over your health and finances (e.g., due to dementia or stroke), and who will assume those responsibilities. Family legacy Consider the legacy you want to leave and whether this aligns with your family’s expectations. Is dividing assets equally among your children really fair if one is well-off while another struggles or has complex needs? Do your plans on inheritance unwittingly create headaches for the recipients – such as leaving property to someone who cannot afford to maintain it, or tax liabilities that eat into any financial gain? Discuss non-financial legacy too: do your offspring know about your (and hence their) heritage? Are there special family mementos/stories to pass on? This knowledge may be lost if you don’t share it now. Place to call home Given their financial, logistical, and emotional implications, living arrangements are crucial to discuss before things need to change (and change can be imposed suddenly, such as by a health emergency). Consider: <ul> <li>Where would you want to go if you need high-level care?</li> <li>Is your current home suitable in your advanced years? How would any required modifications be paid for?</li> <li>Would you move nearer your kids? Downsize, upsize or sea/treechange?</li> <li>If you move, would you need to sell your current home? Could it be retained somehow?</li> <li>Do you want/expect kids to care for you? Are they capable of doing so? </li> <li>Could/would you live with one of your children? If so – such as paying to build a granny flat on their property – how does this affect your will? Would they be forced to sell so their siblings receive their inheritance?</li> </ul> Team united Having everyone on the same page helps things to run smoothly – especially during difficult times such as a death or serious illness in the family. Stay aligned by: <ul> <li>Introducing adult children to your financial adviser, lawyer, and accountant.</li> <li>Ensuring everyone knows where to find your will and who is your executor.</li> <li>Disclosing what is and is not up to date.</li> <li>Providing contingency access to passwords, important documents, keys etc.</li> <li>Sharing relevant policy details (e.g., life insurance).</li> </ul> These discussions may be sensitive and difficult to initiate, but are crucial to ensure your wishes are known and enacted. Plus, they may encourage your loved ones to think about their own wishes – and give you all peace of mind for the future! Helen Baker is a licensed Australian financial adviser and author of the new book, On Your Own Two Feet: The Essential Guide to Financial Independence for all Women (Ventura Press, $32.99). Helen is among the 1% of financial planners who hold a master’s degree in the field. Proceeds from book sales are donated to charities supporting disadvantaged women and children. Find out more at <a href="http://www.onyourowntwofeet.com.au">www.onyourowntwofeet.com.au</a> Image credits: Getty Images

Retirement Income

"Get a grip": Retirees roasted over tone-deaf pension question

A pair of retirees - and their significant others - have found themselves at the centre of a new online debate, all because of their submission to one financial advice column, and its circulation on social media. Both retirees - each with millions of dollars to their names - submitted their concerns to the Sun Herald’s George Cochrane, hoping for financial advice and a solid strategy moving forward with their respective retirements. The first request saw a 78-year-old man and his 79-year-old wife ask if they should look into selling some of their shares in order to stay below a threshold. The couple were receiving an account-based pension from their self-managed super fund, with a combined total of nearly $2.3 million - he had $1,5999,956 and she had $675,590 as of July 2017. Their combined funds were invested in Australian shares, they noted, and gave them a “healthy return which includes imputation credits”. They went on to share that since 2017, some of their shareholdings had “more than doubled in value”, and that the husband’s contribution to their fund had exceeded “the $3 million limit which the government intends to bring in.” “What will be the tax implications if my SMSF reaches $4 million and my wife’s $1.8 million?” they asked. “Should we sell some of our shares to stay below the $3 million threshold?” The second request came from a 60-year-old woman on behalf of herself and her 50-year-old husband, in which she revealed they had property valued at $4 million, and that they’d accessed her super to pay their $300,000 mortgage. His super, meanwhile, still contained half a million. Additionally, the two had plans to relocate to Europe to a “less expensive property” in order for them to spend more time - and have more funds to put towards - travelling. “We prefer not to work,” she shared, “have no children and intend to spend all our money. What would be a good strategy?” Advice was given, but the column’s wave of response came when The Guardian’s deputy news editor Josephine Tovey shared it to her Twitter, sharing her thoughts on the “generational inequality” it represented, and closing her take with the line “what problems to have”. <blockquote class="twitter-tweet"> Honestly if you want to get your blood up about generational inequality in Australia may I recommended the letters on the Money page of the Sun Herald? What problems to have. <a href="https://t.co/uka3EpbOOj">pic.twitter.com/uka3EpbOOj</a> — Josephine Tovey (@Jo_Tovey) <a href="https://twitter.com/Jo_Tovey/status/1660073911944638464?ref_src=twsrc%5Etfw">May 21, 2023</a></blockquote> Many - mostly those from younger generations, primarily millennials - were quick to side with Tovey, unable to wrap their heads around the idea that the couples’ problems were valid ones. “Oh no. I have TOO MUCH MONEY. What to do, what to do,” one user wrote. “‘I have more money than I know what to do with. Please help’,” another contributed. “I'd ‘prefer not to work’ too but here I am,” one quipped. And as someone else put it, “more than $4 million in assets but too cheap to pay for professional advice. Nothing could be more boomer than this.” “I think that there is huge inequity and variance among Boomers - often depending on the presence or absence of intergenerational wealth,” another user noted. “Ditto with millennials cos of [the] same reason”. However, for every person who was condemning them, another was prepped and ready to come to their defence. “Dear oh dear. Tall poppy syndrome strikes again - Australians are so good at trying to tear down the successful,” one said. “Seriously, get a grip everyone. Good luck to them and I hope they enjoy their respective retirements.” “My partner and I don’t have kids, we live in a modest house and save as much as we can so that we can retire early and travel, we are not landlords, we didn’t inherit any money but we should have about $2 million to retire on, we are working class,” one shared, “doesn’t seem wrong to me.” “They obviously worked hard and earnt it!! Haters going to hate - but good on them - I hope in 20 years when I retire, I have problems like this too,” another wrote. “So they have worked hard all their lives, they don’t have children and they want to travel - why is this an issue?” someone wanted to know, before adding that “they deserve to spend their twilight years in comfort.” Images: Twitter

Money & Banking

Three common issues for retirees to watch out for

It can be hard to know what’s next around the bend of the road of life on a good day, and when it comes to retirement, uncertainty can rear its head faster than you can blink. Thankfully, there’s plenty of time to brace yourself, and prepare for what might be waiting. Understanding the most common problems people face is half the battle, and with these three quick explainers, you can take your new intel into your next planning session, and give yourself the head start of a lifetime. <ol> <li dir="ltr" aria-level="1"> New horizons </li> </ol> Change is hard, and the change of pace that comes with retirement can be a challenge to navigate. Many dream of holidaying during this time, buying that caravan they’ve talked about for years, doing those renovations to make home more comfortable or accessible, and spending more quality time with - as well as spoiling - loved ones. According to Senior Wealth Manager Clint McCalla, who spoke to Forbes, one of the biggest problems people face is not saving enough money to maintain the retirement lifestyle they’ve always dreamed of. Put simply, they “can’t afford to do the things they want to do.” “The other problem is boredom or a loss of purpose,” McCalla continued. “Also [we] see relationship issues emerge between significant others as you are now potentially spending more time together, which is an adjustment. “For anyone going through this transition, you need to be realistic about how quickly you adapt to a new lifestyle. It isn’t going to happen overnight. Take time to figure it out, and don’t pressure yourself to meet the expectations you had going into retirement.” <ol start="2"> <li dir="ltr" aria-level="1"> Money </li> </ol> Cash gets a mention in almost every discussion surrounding retirement, and this one is no different. Keeping your finances in order will not only give you peace of mind, but starting early will give you more opportunities moving forward, as you won’t be as limited when it comes to following your dreams. “The two cornerstone questions faced by those anticipating retirement are ‘am I going to be okay?’ and ‘can I afford to financially support the lifestyle I have worked all my life toward?’” Retirement Navigator’s Doug Dahmer explained. “People usually just don’t have enough to retire,” Bob Chitrathorn added, “they simply retire and will try to make do with what they have, without knowing how long the amount of money they have may or may not last.” And as Investment Adviser Derek Miser put it, “many people rely on their pension income to survive, and if this income is reduced due to higher retirement age, it can cause financial hardship. Health issues often become more prevalent in older age, and these may only be compounded by working longer.” <ol start="3"> <li dir="ltr" aria-level="1"> Thumb twiddling </li> </ol> Without a clear sense of purpose, many people spiral down the path of boredom. While having some disposable income to enjoy yourself can help, it doesn’t guarantee that you won’t one day find yourself sitting around and wondering what you want to do. So, it’s crucial to know what it is that makes you happy, what inspires you, and how to ensure you can keep on coming back to it - hobbies are a great example, whether they’re with others and something you can keep busy with on your own terms. “People need to contribute and have purpose in life,” explained Anna Rappaport, “if their main purpose was their job, they need to find a new passion and/or purpose.” “One of the main problems people face when they retire is a lack of purpose and meaning in their lives,” agreed Dennis Shirshikov. “Many retirees struggle with feelings of boredom, loneliness, and isolation, which can lead to depression and other mental health issues.” Images: Getty

Retirement Life

“Some lowlife took our home”: Retirees wake to devastating theft

Retirees Sue and Tony Hill have been living out of a campervan and driving it on the Big Lap around Australia. They returned home to North Adelaide recently to stop in and visit family when disaster struck. Their home was stolen right from under their noses. "I came out Monday morning around 7.30 ish and it was gone,” Sue Hill told <a href="https://www.9news.com.au/national/couple-move-life-into-campervan-and-have-everything-stolen/ac17b057-a51d-4b04-b366-9c63307b2984" target="_blank" rel="noopener">NineNews</a>. "Some lowlife took our home ... Our life has just been ripped out from under us.” The grey nomad couple, who had spent their retirement savings to buy the camper trailer for their Big Lap around the country, were absolutely distraught – but now an incredible act of charity has given them new hope, and a brand new trailer to call home. "We'd given up hope that we'd ever get back on the road again, which is what we love doing. We'd given up hope that we'd ever get our camper trailer back," Mrs Hill said. But then the owner of local business Eagle Camper Trailers – Brent – heard about the plight of the Hills and just had to act. "I heard it, I watched it and I thought 'I can't believe this'," Brent told NineNews. "The fact that someone had taken their home, I needed to try and do something to sort it out." The Hills also turned to social media to try and track down the stolen trailer or the thieves, with no luck. "I've been on the truckie pages trying to get the truckies of Australia to help," Sue and Tony's daughter Janene Harper said. "Through COVID and the rental crisis, they lived homeless for more than 12 months," she said, on the family’s Facebook fundraiser page. "They decided to invest every last dollar they had to purchase a portable home, something they could call home. They were required to sell most of their belongings to be able to move in." The Hills are now incredibly thankful to Brent at Eagle Camper Trailers for his generosity, and for helping to put them back on their feet and into a new home. Images: NineNews

Real Estate

Retiree shocked to find super account drained of funds

A retired couple have received the shock of their life after finding out their super was drained to next to nothing after years of hard work. Stephen Lockwood worked his entire life but was forced to retire after having open-heart surgery, a plate placed in his neck for sciatic nerve, and two hip replacements. At 65 years old, Stephen believed that he had enough in his super account for him and his wife Denise. But when Denise went to take a look at the account, she was horrified to find only $48,863.80 of the expected $200,000 that was meant to be in there. It is understood that in 2010, Stephen took advice from MBA Financial Strategists to merge all his super accounts into one. Based on life insurance cover, all three accounts were merged into AXA's Summit Personal Super Plan before merging into AMP the following year. Five years later, Stephen had a record of $79,613.71 in his super but things took a turn despite the couple contributing $800 each month. This was caused by multiple fees each month, particularly for his life insurance and total permanent disability cover, which almost quadrupled from $509 per month in 2013 to $1960 a month this year. He was also being charged for a financial advisor. "They were taking $24,000 a year," Stephen told <a href="https://9now.nine.com.au/a-current-affair/adelaide-couple-call-out-superannuation-fees/3bf0e217-3d45-4dd2-b155-7842490d0205?ocid=Social-9News&fbclid=IwAR0r0e5KfoEOrTIjSGaa_K70Cf7fGheE6E6HeLrsWbGFxDBx6y_pyGX5iv4" target="_blank" rel="noopener">A Current Affair</a>. Stephen admitted he wasn’t keeping tabs on his account and assumed that being charged for an advisor from MBA Financial Strategist was okay. MBA Financial Strategists told the publication that they attempted to reach out to Stephen in 2017 but heard no response. "At his most recent review in 2017, we alerted Mr Lockwood that his life insurer was increasing his premiums and it would be prudent to review his level of cover," a spokesperson told A Current Affair. "We made multiple attempts to contact Mr Lockwood over a number of years to assist with his annual review, however due to lack of contact we ceased charging his annual fee for advice in 2020.” Stephen’s account has since been referred to the Australian Financial Complaints Authority with AMP cooperating to receive the best possible solution. Image: ACA

Retirement Life

How to spend time wisely – what young people can learn from retirees

For many young people, retirement is a blip on the radar, if not a total unknown. This is particularly true during our cost of living crisis, when investing and contributing more to your pension might fall down the priority list behind paying rent. Despite this, more and more young people are starting to think about retirement in <a href="https://www.forbes.com/advisor/retirement/the-forbes-guide-to-fire/" target="_blank" rel="noopener">earlier ages</a>, with many focusing on their future quality of life and financial independence after they leave work. This can sometimes come at the expense of their wellbeing while they are still working, spending extremely frugally and focusing on the “hustle”, instead of enjoying the freedom and good times that could also characterise young adulthood. For my <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8681690/" target="_blank" rel="noopener">new research</a>, I interviewed over 200 people and surveyed hundreds more to understand how they balance time and money. I focused on people going through major life transitions: recent retirees and new parents, and people preparing for those moments. While we expect retirees to have all the time in the world, I found that in reality, retirees are often pressed for time. Over a quarter of them feel <a href="https://link.springer.com/content/pdf/10.1007/s11205-015-1029-z.pdf" target="_blank" rel="noopener">time poor</a>, with not enough hours left in the day for all they need to do. This is regardless of the amount of money they have. Although wealthy retirees generally have more control over their schedules, both rich and poor retirees are impacted by time poverty in older ages. It’s never too late (or too early) to start making the most of your time and living a better life. Here are some important lessons learned from my retirees’ journeys. <h2>Don’t chase money, let money chase you</h2> One of the biggest regrets among my <a href="https://betterdwelling.com/city/toronto/heres-torontos-richest-and-poorest-neighbourhoods-interactive/" target="_blank" rel="noopener">less privileged</a> research participants was their inability to get as much education as they wanted when younger. Some left university or college early to support their families, or because they could not afford to continue. But all regretted not getting as much education as they needed to be competitive in the labour force later on. To make enough money, pick something and follow through: whether university or skilled technical trades, get good at something. Then, the money will follow. <h2>Worry about how you feel – not how you look</h2> When youth wanes, you are left with how you feel. In retirement, will you be in pain thanks to spending your life in hard labour or nonstop work? My interviewees made clear that when you prioritise making money over health – whether by necessity or by choice – you pay for this by having to give up your precious time in retirement. Some of my new retirees’ health recovery efforts included spending extra time with medical providers, and spending money and time on commuting to appointments. Women were doubly disadvantaged here as, unlike men, they continued to face societal pressures to look younger than their age. To avoid having to <a href="https://academic.oup.com/gerontologist/article/57/5/910/2632069?login=false" target="_blank" rel="noopener">spend extra</a> time and money on health recovery in later life, focus on health preservation in earlier life. Sometimes you may need to to prioritise your own wellbeing above the needs of your employer, for example by taking time off for your physical or mental health. While this is a luxury currently not afforded to all, movements like “quiet quitting” are beginning to start a public conversation on this topic. <h2>Make your time count by sharing it with others</h2> We can “buy” time by exchanging money for tasks we do not wish to do. Consuming items can also have <a href="https://www.jstor.org/stable/pdf/24737120.pdf?addFooter=false" target="_blank" rel="noopener">time costs</a>, as both shopping and learning to use new items takes time. Thanks to my retirees, I now also know that we can get more out of time when we share it with others. Time is what social scientists would call a “<a href="https://sociologicalscience.com/time-network-good/" target="_blank" rel="noopener">network good</a>”. In other words, how we value time depends on the number of other people we can share our time with. All of my retired participants spoke of the need to build strong, healthy relationships while younger, to have friends we can share life with when older. Shared time leads to <a href="https://sociologicalscience.com/time-network-good/" target="_blank" rel="noopener">greater emotional wellbeing</a> and happiness. <h2>Identify your passions early</h2> While nearly all of my retirees spent a considerable amount of time financially planning for retirement, almost as many regretted not planning ahead when it comes to cultivating hobbies and interests. This was particularly pressing for my wealthy retirees, as they faced a drop in their social status and loss of work friends when they retired. Starting new hobbies and interests once retired – out of necessity – can feel like extra work. Pursuing passions is <a href="https://www.tandfonline.com/doi/abs/10.1080/07053436.1995.10715491?casa_token=Puyxz2akU2oAAAAA:Gl6qIREhdxqfcm5fo0cJ6_5DLLjTCuEVPF7Da2JDyxVHNwbeq6N-9Hbc0nMLiKn-cO1fZfd8cKRi" target="_blank" rel="noopener">necessary for wellbeing</a>, but this should be done before retirement, while it is purely for fun. <figure></figure> <h2>Time is love</h2> Repeatedly, my interview participants gently reminded me that giving your time to another person is the biggest act of kindness we can do. This is because once you give your time away, you can never get it back. Be mindful of this as you give your time, to your friends, employers, acquaintances or to social media companies. Thanks to my participants, I now often ask myself: Does this company or organisation love me? Generally, the answer is no, at which point I also know they do not deserve much of my time. At the same time, when a friend, trusted mentor, teacher or stranger donates their precious time to me, I am aware that my appreciation and kindness can only ever partially repay them. My retired participants show that it is important to remain grateful for the time we share with each other while on this Earth. When the daily grind gets you down, remind yourself that time is love. This article originally appeared on <a href="https://theconversation.com/how-to-spend-time-wisely-what-young-people-can-learn-from-retirees-189340" target="_blank" rel="noopener">The Conversation</a>. Image: Shutterstock

Relationships

11 best places to retire in Australia

From Geraldton to Merimbula, there’s so many amazing places to retire to in Australia, so where do you choose? Here’s 11 great places. When it comes to choosing where to retire, it’s good to give the decision some careful thought. Who likes packing up the belongings and moving house several times? Not many people. However, it can be a difficult decision because Australia is a beautiful country, so you’re spoiled for choice! For many over-60s, the decision will come down to a few important factors, such as where your children and grandchildren live, what amenities are available, good transport connections and affordable housing. Good all-year round sunshine doesn’t hurt either. For this reason, Queensland has always proven a popular choice, with places like the Sunshine Coast and the Gold Coast, however, there are great places to choose all over this great southern land. Jill and Owen Weeks, founders of retirement website <a href="http://www.where2now.net" target="_blank" rel="noopener">Where2Now</a> and authors of Where to retire in Australia, say, generally speaking, retirees are looking for a number common factors when trying to find their perfect retirement location. “Every retiree is different, so they will have a different set of criteria about what they are looking for,” Jill explains. “However, generally speaking, they’re looking for leisure facilities, low crime rates, accessible transport, relatively low cost of living, good climate, good medical facilities and choice of shopping.” Before making your final decision, however, do your research. It can be a costly (and not to mention annoying) for anyone who had to move again, and again. With so many amazing places to choose from in Australia, we take a look at some of the most popular places to retire. Does your location make the list? Read on to find out! Sunshine Coast, Queensland No one will be surprised by the inclusion of this area of beautiful beaches, great weather and relaxed community feel, otherwise known as the Sunshine Coast. A little quieter than its southern counterpart, Gold Coast, but no less vibrant, this area is home to a few well-known suburbs, including Noosa, Mooloolaba, Maroochydore and Caloundra. There has been less development in this area, and cheaper housing too. However, that will all depend on what you’re looking for. Prices can range from about $500,000 to $2 million, or if you’re not wanting to buy, there’s plenty of rentals available too. You’ve also got a pick of retirement villages, with a number of affordable options close to amenities. An hour’s drive north of Brisbane, it’s a great place to base yourself that’s quiet and peaceful, but not too far out of the way that you can’t easily visit family in other parts of the country. Coolangatta, Queensland/Tweed Heads, NSW A favourite area with retirees, it’s hard to separate Coolangatta and Tweed Heads, the neighbouring towns on the Queensland/New South Wales border. Much quieter than its glitzy cousin, Surfer’s Paradise, Coolangatta has a relaxed and friendly vibe that’s easily accessible to all parts of Australia, with the nearby airport. Good shopping centres, close proximity to leisure and entertainment options, and plenty of community groups, clubs and associations to get involved in, this area has everything an over-60 could want. The popular Twin Towns club is beloved by retirees on both sides of the Queensland/New South Wales border, with affordable dining, entertainment (in the form of classic film showings and live music), live bands for dancing, and let’s not forget the great views of the Tweed River! Unlike the glitter strip of the Gold Coast, which can get a little noisy when school leavers descend on Surfer’s Paradise and surrounds, Tweed Heads is relaxed, peaceful and an ideal retirement spot for many. Between Tweed Heads and Coffs Harbour, as well as further south towards Foster-Tuncurry, Aussie retirees are spoilt for choice. If you’re looking in this area, take a few days and go for a drive to find a place that feels right for you. Hunter Valley, NSW While you’re probably thinking over-60s are retiring here for the wine (and that could definitely be a contributing factor), the Hunter Valley also offers close proximity to the state’s main urban hubs – Newcastle and Sydney – and has plenty of amenities for retirees. House prices have steadily risen in this area, however, as more people have discovered the appeal of this diverse region. Having said that, it can be cheaper than living in many other parts of the country which are closer to the big capital cities. What the Hunter Valley excels at though is its rich gourmet food and wine scene, stunning golf courses and diversity of residents, with the nearby mining industry continuing to attract and retain people of all ages to the region. Merimbula, NSW It’s one of the worst-kept retirement secrets among retirees – the south west coast of NSW. From Milton to Merimbula, this peaceful coastline that has long been popular with holidaymakers has started attracting large numbers of people looking for a quiet and relaxed retirement destination. From Sydney, Milton is about a three-hour drive while Merimbula is about a six-hour drive, with beautiful scenery along the way. If you feel like a day trip to Canberra or a weekend in Melbourne, these are well within driving range too. If you prefer a quicker way to get to Sydney, there’s also an airport in Merimbula, with daily flights to Sydney and Melbourne. There’s sunshine all-year round, with a range of natural attractions, superb beaches and national parks to go for walking excursions. Plenty of amenities too, with a good selection of shops, clubs, leisure facilities and restaurants. Safe and friendly too, this is a beautiful place to call home. Echuca, Victoria For residents of this little spot on the Murray River, there could be no better place to live. While it may be far away from the pristine coastlines of the Sunshine Coast, the community spirit in the twin towns of Echuca and Moama, which sits across the river in NSW, makes every visitor feel welcome. As the closest settlement on the Murray to Melbourne, Echuca offers an affordable place to live that’s vibrant, accessible and friendly. Retirees to this place, whose name means “the meeting of the waters”, love the clubs, associations and activities that can be found and enjoyed by residents and visitors alike. It also offers great health facilities and plenty of places to eat out at half the price of dining in Melbourne. Mornington Peninsula, Victoria On the other side of the state, to the south, is the Mornington Peninsula, another retiree favourite in Victoria. The quaint coastal villages and hamlets in this breathtaking part of the world are hard to forget, and offer endless places to explore and discover for retirees who decide to settle here. From the beachfront to the rolling hills of orchards and market gardens, this place is heaven. There are a number of housing options, including retirement villages, good access to the Melbourne CBD, if you need to visit family or fly interstate, and there are plenty of quality food and wine producers, so you’ll never fall short of having delicious dishes to create for visiting family and friends. For those who like a morning or afternoon walk, there’s beautiful places to go in and around the open water scenery of Western Port Bay, Port Phillip Bay and the Bass Strait. Huon Valley, Tasmania Sharing the love around Australia, you can’t forget Tasmania. If you’re love for natural beauty and open spaces can master the cooler climate you’re going to experience here, then Huon Valley is an ideal retirement spot. While many retirees opt for places with warmer weather, Jill and Owen Weeks say more people are noticing the charms of Tasmania. “We have become aware of a number of people from mainland states looking to retire to Tasmania,” they say. “For example, St Helens on the east coast, which has around 300 days of sunshine a year, and the Huon Valley. People we have spoken to say they like the clean air, friendly locals, ease of getting about and the relatively low cost of living (compared to where they used to live).” With affordable housing, plenty of attractions to explore and a strong community vibe, the townships in the valley could be a great place to look at for those hoping to retire in a beautiful part of Tasmania. There are seven altogether: Cygnet, Dover (on Esperance Bay), Franklin, Geeveston, Port Huon, Glen Huon and Huonville. While retiring in Tasmania won’t be for everyone, if you’ve lived here before and love it, or prefer quiet places with that local feel, the towns in this part of the world could be worth a look. Kadina, SA Together with Tasmania, South Australia has the highest proportion of older Aussies (about 16 per cent) compared to the other states. So, where do they live? Well, you’ll find many retirees enjoying the community spirit of the Copper Coast, with Kadina at its heart. This pretty town, along with Wallaroo and Moonta, make up the Copper Coast, so named for the discovery of copper at the Wallaroo mines, near Kadina, in 1859. The region on the Yorke Peninsula, about a two-hour drive from Adelaide, is also known as ‘Australia’s Little Cornwall’. Here, you’ll find the Kernewek Lowender, the world’s largest Cornish festival, which has been held every two years since 1973. Away from the hustle and bustle of the capital city, Kadina and its neighbours continue to attract retirees for its country way of life and the variety of facilities the towns offer. There’s a good selection of supermarkets, medical services, retirement living options, aged care facilities and local attractions to keep residents busy. Yankalilla, SA Set on the western side of South Australia’s stunning Fleurieu Peninsula, Yankalilla is a pretty country haven that has lots of charm and character. If you love being surrounding by nature and is only about an hour’s drive south from Adelaide. It has a number of quaint bed and breakfast establishments for visiting family and friends, and there are affordable housing options if you’re looking to set up permanently. Median prices in Yankalilla are about the $240,000 mark. For beach excursions, the nearby seaside havens of Normanville, Carrickalinga and Myponga Beach are beautiful spots for a relaxing morning swim or afternoon walk. While it may not have as many facilities as other retirement havens, the fact that it’s an hour’s drive from the state’s capital means you can get to bigger shopping complexes and medical facilities. Home to farmers, artists, city-dwellers down for the weekend and retirees, this is an ideal place for those looking to be close to a capital city but with the peaceful lifestyle of a quiet country town. Geraldton, WA If you love the feel of the sun warming your skin and taking a dip in clear turquoise waters, Geraldton is the place to go. This coastal town about a five hour drive from Perth is a popular haven for retirees who like to be warm all-year round! It’s the gateway to the Abrolhos Islands and is an area known for its rock lobster fishing. Jill and Owen Weeks suggest nearby Dongara, which they say is perfect for over-60s who love fishing and a quieter life. Due to the local iron ore mining boom, housing may have gone up slightly compared to previous years, but you can still find some affordable gems here. Due to the growth from mining, the region boasts a number of facilities for residents, including a wide variety of community activities and programs for residents over 60. These include: art classes, ballroom dancing, bowling tournaments, computer lessons and a range of clubs to get involved in. Esperance, WA While the South West of WA has a wonderfully diverse range of quiet inland towns and coastal havens for retirees, Esperance is a real natural gem. It’s one of the furthest outposts from Perth in the state’s south, but its unspoilt coastline, stunningly white beaches, friendly community and great options for one to three-day road trips make it an ideal hub to set up and establish your retirement home. If you’re not up for the eight to nine-hour drive south-east from Perth, Esperance has an airport that provides daily travel to Perth with Virgin Australia. Here, you’ll find all the essential amenities of any large regional centre, along with plenty of things to see, do and show your family and friends when they come down for a visit. Median house prices come in around $267,000 for units or $370,000 for houses. A truly beautiful part of the world, Esperance could make a great retirement destination for anyone. Image: Getty

Retirement Income

5 questions to ask before setting up self-managed super

Self-managed super funds (SMSF) continue to attract retirees looking for greater control over their finances, but is managing your own super for everyone? Here’s five questions to ask yourself before setting one up. Retirees continue to establish self-managed super funds, with SMSFs the fastest growing area within the superannuation industry. For many Australians, the advantage of managing your own super means greater flexibility in choosing where to invest the money, lower fees and better performance on average compared with industry and retail funds, and ultimately, more control of the future of your retirement income. Are you looking to manage your own SMSF? Before you do and to get a better understanding of what can be involved, wealth management firm BT Financial Group recommends asking yourself these five questions to see if setting up a SMSF is right for you. 1. Why are you looking to establish a SMSF? Historically, many prospective SMSF members have used the terms “control” and “choice” as reasons to establish a SMSF. But, this is not necessarily a feature confined to SMSFs. The ability to choose underlying investments (often thought of as also giving control by some) is a feature that is today available in a number of other types of superannuation funds. In general, the only asset classes that SMSF trustees will potentially look to invest in that can’t be achieved through a retail fund are direct property investments and investments in collectibles. 2. How many money do you have to start your SMSF? You can start your SMSF with less, but the industry recommended investment is around $200,000. This makes the cost of running the fund more competitive with other funds with a similar amount of money invested. There are incidental costs to running your SMSF which should be taken into account when deciding whether it’s a cost effective option with the balance you have. There are also costs in moving money from one fund to another, such as realising capital gains tax on the sale of existing investments, and time out of the market until investments are re-purchased. Any potential loss of insurance coverage (and the loss of possible benefits around group insurance arrangements) also needs to be considered. 3. What trustee structure will you utilise? As a trustee you have two choices here – individual or corporate. Most SMSFs have been established with an individual trustee structure, on the basis that it’s initially cheaper and easier. However, the benefits of a corporate structure should not be ignored. It has future benefits for the efficient running of the fund. For example, any direct shareholdings of an SMSF need to be registered in the name of the trustees. With individual trustees, when new members are added or removed, changes are required to the share register. If held via a corporate trustee, however, any changes in membership of the fund doesn’t require share registry changes, as it’s only the directors of the corporate trustee that change – not the trustee itself. 4. Have you thought about the fund’s investment strategy? One big requirement in managing a SMSF is to have a sound investment strategy, which complies with the sole purpose test requirements and assists in managing and growing super savings. You should consider diversification, risk and return. Given the recent amendments to super law, trustees should be aware that they’re also required to review their investment strategy regularly (a good idea would be annually) and to consider the insurance needs of the fund. This doesn’t mean that insurance needs to be taken out if members are adequately covered through other means, but the considerations should be documented for future reference. 5. Do you understand your obligations and responsibilities as a SMSF trustee? One of the most common comments from new trustees is that it takes more time than they anticipated in running their own fund. All new SMSF trustees are required to sign a standard trustee declaration issued by the Australian Taxation Office. While this document does a great job of summarising many of the requirements of being a trustee and the responsibilities associated with running a SMSF, the question still remains whether trustees truly understand this or are just signing it as a matter of course for establishing the fund. In the event that something goes wrong, ignorance won’t be an excuse for trustees who have signed the form. Did you know? Not to equate a SMSF with a do-it-yourself fund. If you decide to start your own fund, you should choose experienced service providers to assist with the efficient and compliant running of your fund. This includes administrators or accountants to ensure the accounts are maintained, a lawyer for the appropriate drafting of the terms of the SMSF’s deed, a tax agent for completion of annual tax returns, and a financial planner to assist with strategy and investment decisions. Image credits: Getty Images

Retirement Income

Retiree figures out how to win the lotto

A retired couple have beaten possibly all odds when it comes to winning the lottery thanks to “simple math”. Jerry and Marge Selbee from Evart, Michigan, are multimillionaires because of a loophole in the gambling game. After retiring in 2003, Jerry decided to follow the lotto closely and discovered that it's easier than he thought to win, saying, “Anyone could have done it.” The retiree inspected the game called WinFall and found that if no one won the jackpot of US$5 million ($7 million AUD), then the money would go to ticket holders with fewer winning numbers. "I looked at the probabilities of the game and it said that when the WinFall actually occurred and no one won the jackpot, that the prize level would go up by a factor of 10," Jerry said on <a href="https://9now.nine.com.au/60-minutes/jerry-and-marge-go-large-lotto-tips-selbee-how-retired-couple-won-39-million/1e5093b5-be35-400f-a142-8ecdf0c289d0" target="_blank" rel="noopener">60 Minutes</a>. "US$50 for a three-number winner and US$1,000 for a four-number winner and the odds were one in, one in 56 and a half for a three-number winner and one in 1032 for a four-number winner." Jerry went on to explain that part of the problem when it comes to playing the lotto is that people think it is structured. "I did not have to be lucky to win. I had to be unlucky to lose." Almost akin to placing a bet on himself, Jerry decided to test his theory and realised that he was right – and quickly came clean to his wife Marge who was all for it. The couple would buy hundreds of thousands of tickets for the WinFall game – but disaster eventually struck when no more tickets were sold in their hometown. Soon the pair had to drive 15 hours to Massachusetts to keep winning a similar style of lottery with the same "loophole" structure, but it was something they were both keen to do. Eventually, they were caught out by investigators but Jerry and Marge were in fact not doing anything illegal. Their story eventually became well known to the point that a film is being made for streaming service Paramount+ and will feature Breaking Bad’s Bryan Cranston. Despite their lifetime of winnings – in the many tens of millions over the years – Jerry and Marge remain quite humble, spending their money on education for their grandchildren and great-grandchildren. Images: Nine

Money & Banking

How the pandemic has impacted retirees

Two years of lockdowns, mask-wearing and rapidly expanding our medical knowledge during the COVID-19 pandemic has affected the world in a variety of ways - and retirees are no exception. New research has found that Australia’s over 50s have shifted their priorities since the pandemic, with 44 percent of seniors wanting to live closer to their families and nearly 70 percent feeling their appreciation of the little things in life has changed. According to the <a href="https://www.seniors.com.au/news-insights/australian-seniors-series-quality-of-life-report" target="_blank" rel="noopener">Australian Seniors Quality of Life Report</a>, which surveyed over 5,000 Australians over 50, one in three Aussies have changed their priorities in retirement because of Covid, and approximately half find that good physical and mental health is their highest priority during retirement. Though Covid has had the biggest impact on retirees' travel plans - according to 55 percent of respondents - spending time with family (42 percent), and socialising and being in the community (36 percent) have been listed as a close second and third. Seniors’ expectations for their quality of life during retirement have also changed following the pandemic. A majority (62 percent) expect they might not be able to travel in the ways they want to, while just over 50 percent expect they may have to deal with greater health risks - with people over 60 more at risk of becoming seriously ill with Covid, it’s unsurprising that this is a big issue for retirees. Even with all of the changes the pandemic has brought to our lives, nearly all seniors agree that living independently is the most important part of retirement and it ranks in the top five of key goals Aussies have. It comes as the preference for living at home and receiving residential care outstrips aged care, with the <a href="https://www.pc.gov.au/research/ongoing/report-on-government-services" target="_blank" rel="noopener">Productivity Commission’s Report on Government Services</a> finding that the number of home-care packages reached 236,554 in the last financial year, while the number of aged care packages stayed stable. “If you asked 100 people where you would rather be, 100 percent say ‘I want to stay home’,” Darren Nelson, an adjustable bed expert at Solace Sleep, told OverSixty. “We are seeing a huge increase in people reaching out, desperate to avoid having to go into an aged care facility.” As a result of this spike in demand, Solace Sleep – a company providing in-home care supplies – has seen the sale of mechanical beds go from less than 10 beds a year to over 300. Not only that, but living at home means that it’s easier to stay connected to friends and family - another key retirement goal. All in all, the COVID-19 pandemic has seen many of us question our priorities in life, and shift our focus to spending time with the people that matter most - and it might be that it’s an antidote to the isolation we’ve faced over the past few years and the key ingredient for a fulfilling life. Image: Getty Images

Retirement Life

Retirees face exorbitant fees for retirement village upkeep

A group of NSW retirees are facing exorbitant fees for basic upkeep of their retirement village, as they question where their strata money has gone. At Lakes of Cherrybrook in Sydney's north west, mould coats the ceilings and walls and bright orange plastic has been stapled to every roof in the village since April to prevent water coming in. Fifty units, or 75 per cent of the entire complex, are now owned by RSL LifeCare, one is common property and there are 13 units owned by resident strata owners. Last year the residents were informed new roofs were going to be installed, which the strata owners were advised there would be a special levy for. One of the residents, Lesley, said its "unfair" to ask the retirees to front the costs of the repairs. She told <a href="https://9now.nine.com.au/a-current-affair/nsw-retirees-face-exorbitant-fees-for-retirement-village/dc08ddfe-21aa-463a-b461-780f5a1f043a" target="_blank" rel="noopener">A Current Affair</a>, "They have the duty of care to look after the place and the people in it." "We didn't come here to do maintenance work, we didn't come here to go to meetings month after month … It's put an awful lot of stress on people." On June 1st, the residents said they were told works would cost more than $7 million, but it looks like that could blowout, as many works are yet to be priced. According to this quote, the residents could be expected to pay up to $200,000 each, when they already pay up to $13,000 on strata fees. According to RSL Lifecare's 2021 financial results, the company has $170 million in the bank, which has left residents questioning why they're the ones who have to pay up. Another resident, Judy, said, "People are deaf, they can't hear what's going on, they don't understand; they get frustrated. It's sad, it's wrong." Image credits: A Current Affair

Retirement Life

For the love of Greys – retiree volunteers and retired ex-racers

It’s an unexpected match made in heaven, but retirees hoping to give their time to a good cause could find one in a four-legged friend looking for a home. With National Volunteer Week (16 – 22 May 2022) soon upon us, it’s timely to recognise all volunteers. But there’s a very special group of retirees who go the extra mile for Greyhounds. Contrary to popular belief, Greyhounds are big goofy sooks and will swamp you with adoration and love. They’ll also adopt a place on your couch or bed as a loyal pet. This is why many volunteers and foster carers not only adopt a grey or two, but also actively want to save them from greyhound racing. Not surprisingly, the RSPCA <a href="https://kb.rspca.org.au/knowledge-base/what-are-the-animal-welfare-issues-with-greyhound-racing/#what-needs-to-change" target="_blank" rel="noopener">does not support greyhound racing</a> due to the many unresolved animal welfare concerns associated with the so-called sport. These concerns motivate rescue groups, as well as activists. CPG (the Coalition for the Protection of Greyhounds) is a dedicated group of volunteers across Australia who work together to inform the public about the cruelties of dog racing – <a href="http://www.facebook.com/CoalitionForTheProtectionOfGreyhounds" target="_blank" rel="noopener">FB</a>,<a href="http://www.greyhoundcoalition.com/" target="_blank" rel="noopener"> </a><a href="http://www.greyhoundcoalition.com/" target="_blank" rel="noopener">web</a>,<a href="https://www.instagram.com/coalitionprotectgreyhounds/" target="_blank" rel="noopener"> </a><a href="https://www.instagram.com/coalitionprotectgreyhounds/" target="_blank" rel="noopener">Insta</a>,<a href="http://www.greyhoundcoalition.com/cpg-in-the-media" target="_blank" rel="noopener"> </a><a href="http://www.greyhoundcoalition.com/cpg-in-the-media" target="_blank" rel="noopener">media coverage</a> Retired nurse Annie is one of CPG’s amazingly enthusiastic volunteers. She’s a media spokesperson for the group and is often busy doing radio and newspaper interviews. Her love affair with Greyhounds started long ago. “I saw an ad on Facebook by Gumtree Greys for foster carers, applied and was introduced to Holly. This beautiful black greyhound girl had been an Irish Champion and ‘Bitch of the year’ in 2012. She was bought by an Australian syndicate at two years old and kept to breed from,” said Annie. Holly whelped many litters until she was nine years old and had her last puppies by caesarean. When Annie took Holly to be desexed, the vet said she was a mess inside and had been sewn up with nylon non-dissolving sutures. “Holly taught me all about how gentle, quirky, dorky, loving and unintentionally hilarious greyhounds are, like the way their jaws quiver when they are happy. All of my future foster greyhounds learnt how to become great pets with guidance from gorgeous Holly,” said Annie. “I foster greyhounds because they deserve the chance of a good life as a dog and pet, not just a product or commodity. Greyhounds bring me so much joy. In return, I speak out for them because of what they suffer on Australia’s many racing tracks.” Annie says she’s appalled by the fact that in 2021, there were <a href="https://greyhoundcoalition.com/2021-australian-track-deaths-and-injuries/" target="_blank" rel="noopener">212 greyhound deaths</a> on Australian dog tracks and over 10,000 injuries, according to statistics from official stewards’ reports. Because of this, she volunteers for CPG and other greyhound-related voluntary bodies. She’s also a motorbike enthusiast and uses her motorbike riding to raise money for greyhound welfare. Alicia – one of CPG’s newest volunteers – is semi-retired. She works part-time in journalism and interior design, but adores Greyhounds. Her male black Greyhound, Fluffy, is now nearly seven years old and has been retired from racing for four years. “Fluffy is one of the lucky survivors from the greyhound racing tracks, as he only won one race and is loving his retired life on the couch! He’s a soppy sook despite his size and the name suits him down to the ground as he is not an Anubis or Nero by nature,” said Alicia. “My lovely boy is very nervous due to his past racing days. He’s frightened of loud noises such as cars or motorbikes, as well as thunder and lightning. He absolutely loves children and babies, as he instinctively knows they won’t harm him.” She says greyhounds are ideal companions for retirees as they are lazy couch potatoes, love cuddles, are very affectionate and generally don’t need more than one walk of 20 minutes a day. “I volunteer with CPG by writing content for publication. They really need more people who have at least five years’ experience writing news releases and placing them with media outlets. Greyhounds are innocents with no voice, so we speak up for them,” said Alicia. She said CPG’s <a href="https://greyhoundcoalition.com/5-key-demands/" target="_blank" rel="noopener">five-point plan</a> is aimed at reforming the racing industry. As well as increased penalties for mistreatment, the plan includes tracking each dog from birth to death so they don’t ‘disappear’, reduced breeding, sanctuaries and safer tracks. Fran, previously a lecturer in Environmental Science, is spokesperson and leader of the Tasmanian activist group <a href="https://www.facebook.com/Let-Greyhounds-Run-Free-425546354301519/?ref=page_internal" target="_blank" rel="noopener">Let Greyhounds Run Free</a> (LGRF), which formed as a result of the ABC's Four Corners program on live baiting and the subsequent Parliamentary Inquiry into the Tasmanian Greyhound Industry. LGRF has held several rallies against greyhound racing, and continues to lobby for the end of this cruel, archaic industry. Fran began her greyhound journey back in 2000 when she came across a Greyhound Adoption stall at a local event. She was instantly hooked after meeting a few of these four-legged beauties and adopted the timid and scared Miss Ruby. It was Ruby who introduced Fran to the dark life of a racing greyhound. Ruby was soon joined by regal Jena. Ruby was terrified, and Jena was injured and a severe epileptic - why we may never know, and it was then that Fran vowed she would do whatever she could to end greyhound racing. All these years later, having had the joy of six hounds and several more foster hounds, she now has the privilege of living with Paddy and Jennifer Jane. Paddy became well known in promotions for Let Greyhounds Run Free's rallies. He is also a champion at helping timid and shy foster greyhounds come back to life after their traumas, and adjust to life as it should be, in a safe and loving home. “I have stories about all the beauties who have blessed my life. They are the most gentle, loving, soul-filled, quirky beings and I'm so very grateful I met ‘Miss Ruby Two Shoes’ way back then in 2000” says Fran. Meanwhile, retired lawyer Jeff is also a tireless campaigner, volunteer and lover of greyhounds. He’s been a supporter of the worldwide campaign to end greyhound racing for the last 15 years or so. “When my pet greyhound died in 2015, I promised myself to continue fighting for the cause. That was the year when the live baiting scandal broke in Australia,” he said. “I followed the news reports and the inquiries closely. When an opportunity arose to become an admin at the new Facebook group ‘<a href="https://www.facebook.com/groups/1376102522706650/" target="_blank" rel="noopener">Ban Greyhound Racing – Australia Wide</a>’, it was an ideal way to support the growing anti-racing campaign.” Jeff said the group’s focus has always been on activism. “There are many other social media outlets where people can share pictures of their rescued greyhounds and discuss their care, behaviour and feeding. On our page, we try to be a resource for current information about the Australian racing industry.” Those interested in adopting or fostering a goofy hound, should contact one of the groups listed <a href="https://greyhoundcoalition.com/links-to-greyhound-rescue-groups/" target="_blank" rel="noopener">here</a>, while anyone interested in volunteering with CPG, can find out more <a href="https://greyhoundcoalition.com/volunteering-with-cpg/" target="_blank" rel="noopener">here</a>. For further information about greyhound welfare issues, see CPG’s hot topics listed <a href="https://greyhoundcoalition.com/media-resource/" target="_blank" rel="noopener">here</a>. Images: Supplied

Family & Pets

What the federal Budget does – and lacks – for retirees

<div title="Page 1"> <div> <div> For Aussies currently saving for retirement, unpicking the Budget suggests a case of short-term gains but long-term pain. While the Budget included some soft support on the cost of living, it was very clearly an election budget – lots of short-term sweeteners that do little to address the underlying financial cavities. Here’s what it all means for retirees. Pension numbers don’t add up The ASFA Retirement Standard – used as a guide by <a href="https://moneysmart.gov.au/glossary/asfa-retirement-standard" target="_blank" rel="noopener">the government’s MoneySmart website</a> – states couples need at least $41,929 p.a. for a modest retirement; $64,771 for a comfortable one. Yet the maximum aged pension – including supplements – is only $38,708.80. A $3,220.20 shortfall. For singles, that gap is even worse. Income of $29,139 will fund a modest retirement; $45,962 a comfortable one. The maximum pension? Just $25,677.60 – $3,461.40 below the minimum needed. In that context, it’s difficult to see the value of the one-off $250 bonus for pensioners. That buys, for example, $20 in fuel each week for 3 months. And even with the temporary fuel excise cut, $20 doesn’t buy much. Tricky tax offsets In theory, offsets like the Low and Middle Income Tax Offset (LMITO) sound like a win. However, they aren’t so clear-cut. Think back to the last tranche of income tax offsets – lots of hype beforehand, but hardly anyone noticed a difference in their bank account. Politicians like to use big numbers, but they’re usually referencing the total saving over the forward estimates – or next 4 years – not necessarily what you will see this year. Incomes also change year-to-year, potentially shifting your tax bracket and hence your eligibility. Plus, you won’t see this latest offset until you lodge the current year’s tax return – at least 3 months from now. Breaking or making barriers? Some Budget measures sought to address issues inhibiting self-funded retirement – a great first step. What they lacked, though, was structural reform. Funding to support women escape domestic violence is a great example. Too many women face the choice between a life of poverty for themselves and their children if they flee, or a life of violence and the threat of death. But where exactly does that funding go? How many homes will it deliver? What programmes will it support? Are funds properly distributed between immediate support for vulnerable women and prevention strategies to stop violence occurring in the first place, such as education and mental health services? </div> </div> </div> <div style="text-align: left;" title="Page 2"> <div style="text-align: left;"> <div style="text-align: left;"> Similarly housing affordability support. For years, we have been warned of far-reaching impacts from unaffordable housing and declining home ownership rates: <ul style="text-align: left;"> <li> More people retiring with a mortgage and burning superannuation to pay it off. </li> <li> More retirees renting – constraining rental supply, inhibiting housing stability and restricting necessary home modifications. </li> <li style="text-align: left;"> Delayed wealth accrual for younger people. </li> </ul> </div> </div> </div> However, the Budget assistance for first home buyers and aspiring regional buyers who have not owned property within the past 5 years has stoked fears of further inflating house prices. Meanwhile independent financial advisers are disgruntled by the effects of industry regulation – soaring compliance costs are ballooning the price of professional advice, limiting access for lower income earners Maximising retirement savings But, it’s important to work with what we have. One positive change for pre-retirees actually introduced in last year’s Budget – which takes effect from 1 July this year – relates to downsizer super contributions. This little-known rule enables older people to contribute up to $300,000 ($600,000 per couple) from the proceeds of selling their home into super, without affecting contribution caps. The change <a href="https://www.ato.gov.au/Super/APRA-regulated-funds/In-detail/News/Eligibility-age-change-for-downsizer-contributions/#:~:text=This%20means%20from%201%20July,proceeds%20of%20selling%20their%20home." target="_blank" rel="noopener">will see the eligibility age reduced from 65 to 60</a> – enabling more Aussies to boost their super and enjoy the associated tax benefits when downsizing. Other great news is the ability to contribute to superannuation way beyond current ages and without meeting a work test. Make sure you seek advice. Meanwhile, even short-term windfalls can be invested wisely – whether in the form of lower taxes, cash grants or simply cheaper fuel. The trick is to have a solid household savings and investments plan, to identify these funds and separate them from everyday expenditure. While interest rates remain low, now is a good time to pay down debt – a great use for tax returns. Of course, with a <a href="https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/FlagPost/2021/December/Timing_for_the_2022_federal_election" target="_blank" rel="noopener">federal election due by 21 May</a>, remember that some Budget measures may never eventuate – the new government will be free to make their own changes or start over. So, by all means consider the Budget and its possible impacts on your bottom line. But don’t pin your whole retirement on its every detail. Focus on the big picture, get qualified advice, have a plan, and build in contingencies. Otherwise, there may be nothing left with which to fill any nasty cavities! Helen Baker is a licenced Australian financial adviser and author of two books: On Your Own Two Feet – Steady Steps to Women’s Financial Independence and On Your Own Two Feet Divorce – Your Survive and Thrive Financial Guide. Proceeds from the books’ sales are donated to charities supporting disadvantaged women. Helen is among the 1% of financial planners who hold a master’s degree in the field. Find out more at <a href="http://www.onyourowntwofeet.com.au/" target="_blank" rel="noopener">www.onyourowntwofeet.com.au</a> Note this is general advice only and you should seek advice specific to your circumstances.

Retirement Life

How leaving work can be good for you

A few years ago, my mother had a bit of a crisis in the lead-up to her retirement. She struggled with her self-worth, perceived value to society and fears of boredom. She’s not alone in her worry. The literature suggests retirees may experience the loss of <a href="http://gerontologist.oxfordjournals.org/content/55/5/802.long#ref-38">identity</a>, usefulness, sense of purpose and <a href="http://www.cornellpress.cornell.edu/book/?GCOI=80140100816130">social relationships around work</a>. For some people, retirement is also associated with reduced income, <a href="http://link.springer.com/article/10.1007%2Fs00391-016-1036-y">social exclusion</a> and <a href="http://www.nber.org/papers/w12123">physical and mental deterioration</a>. Retirement wasn’t all doom and gloom for Mum. Within months of retirement, she was busy with piano practice, dance classes, choir rehearsals, painting and reading. Today she wonders how she survived decades of working. She is one of many who reap benefits from retirement. Our recent study, published in the <a href="http://www.ajpmonline.org/article/S0749-3797%2816%2900045-3/abstract">American Journal of Preventive Medicine</a>, followed 27,257 working Australian adults for more than three years. During this time, more than 3,000 retired. After controlling for various confounding factors, we found those who retired were more likely to enjoy a healthier lifestyle than their counterparts who remained in the workforce. <h2>What else did we find?</h2> During the study period, retirees increased their physical activity by 94 minutes per week, compared with 32 minutes among non-retirees. Retirees also became less sedentary, with a reduction of 67 minutes of sitting per day, compared with 27 minutes among non-retirees. Retirees were also more likely to get a healthy amount of sleep. They gained 11 minutes of sleep per night while the non-retirees lost four minutes. Finally, half of the female smokers quit smoking after retirement, a cessation rate twice as high as working female smokers. Overall, our findings weren’t a surprise. Several prior studies from North America and Europe found retirement was associated with more physical activity in leisure time. This is likely because retirement <a href="http://link.springer.com/article/10.1186%2Fs12966-015-0186-4#page-1">reduces common barriers to physical activity</a>, such as lack of time, low energy and competing priorities. The reduction in sedentary time following retirement that we noted could be explained by a reduction in occupational sitting and commuting. Most office jobs involve prolonged sitting. A <a href="https://ijbnpa.biomedcentral.com/articles/10.1186/1479-5868-9-128">previous study among office, call centre and customer service employees</a>, for instance, found an average of 77% of their work time was spent in uninterrupted sitting. There is evidence that certain types of employees, such as those in skilled occupations, <a href="http://www.ncbi.nlm.nih.gov/pubmed/22368226">sit even more than others</a>. This may explain why, in our study, those with higher educational attainment, people who lived in urban areas and those who worked full-time experienced the most reduction in total sitting time. Our finding about sleep duration is in line with a <a href="http://www.ncbi.nlm.nih.gov/pmc/articles/PMC2768952/">previous French study</a>, which found people had less sleep disturbances after they retired. The mechanisms for the change are unknown, but we hypothesise that it might be due to the removal of work demands and stress, and having more time. Our study is the first to find that female retirees are more likely to quit smoking. Explanations may include reduced occupational stress and disposable income after retirement. Perhaps retirement also prompted smokers to rethink their lifestyles. The behavioural changes we observed among retirees are not trivial; they have <a href="http://journals.plos.org/plosmedicine/article?id=10.1371/journal.pmed.1001917">profound effects on health and longevity</a>. Positive lifestyle changes following retirement <a href="http://www.sciencedirect.com/science/article/pii/S0002934306011855">may therefore lead to better health</a> down the track. <h2>But not everyone benefits equally</h2> Retirement doesn’t benefit everyone equally. Our study showed those who retired before 65, those who worked full-time prior to retirement and those who retired voluntarily benefited more from retirement in terms of lifestyle improvement. This is consistent with <a href="http://eurpub.oxfordjournals.org/content/24/3/433.short">previous research</a>, which suggests the lifestyle changes associated with retirement transition differed by various factors, such as reasons for retirement, and pre-retirement lifestyles and circumstances. So retirement may not automatically lead to better health, but it presents an opportunity to engineer a healthier lifestyle. <h2>Window of opportunity for lifestyle changes</h2> We live in a rapidly ageing society. Globally, the number of people aged 60 years and above is <a href="http://www.who.int/features/factfiles/ageing/ageing_facts/en/">expected to increase</a> from 900 million in 2015 to 2 billion in 2050. In Australia, <a href="http://www.abs.gov.au/ausstats/abs@.nsf/0/1CD2B1952AFC5E7ACA257298000F2E76?OpenDocument">15% of the population</a> is aged above 65 years and <a href="http://www.abs.gov.au/ausstats/abs@.nsf/Latestproducts/6238.0Main%20Features3July%202014%20to%20June%202015?opendocument&tabname=Summary&prodno=6238.0&issue=July%202014%20to%20June%202015&num=&view=">40% of people aged 45 years</a> and over are retired. The health and well-being of retirees therefore plays a critical role in the health of our society. Retirement is a unique opportunity to interrupt previous routines and establish new habits. A number of <a href="http://ijbnpa.biomedcentral.com/articles/10.1186/s12966-016-0336-3">intervention programs</a> have been found to promote healthy lifestyles among adults around retirement age. These use various strategies from professional counselling to in-home and computer-based programs. <a href="http://www.ncbi.nlm.nih.gov/pubmed/23758511">Other interventions</a> have offered an explicit social role, such as foster grandparents, mentors and volunteer works. These are promising options for health promotion among retirees, though the evidence is not yet robust. <h2>What can you do?</h2> Here are a few suggestions for those who are retiring soon. 1) Embrace retirement. Rather than thinking about retirement as the end of a working life, consider it as the start of life after work with new freedom, opportunities and <a href="http://www.ncbi.nlm.nih.gov/pubmed/23199311">identities</a>. 2) Prepare for retirement ahead of time. Plan with key concepts such as health, leisure and enjoyment in mind. Pick up new hobbies, discover new passions, or reconnect with your old interests. 3) Find a new role that makes your life meaningful, whether it is a grandparent, teacher, volunteer or community organiser. Discover new identities within society, make new friends and stay connected. If you’re not retiring in the near future, don’t wait until retirement to live a healthy, enjoyable and fulfilling life. Eat well, be active, get healthy amounts of sleep and find time in your busy life to savour the moment – even just for a few minutes a day. This article originally appeared on <a href="https://theconversation.com/retirees-dont-worry-about-your-health-deteriorating-leaving-work-can-be-good-for-you-54179">The Conversation</a>. Image: Getty

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