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The psychology of retirement: why do so many athletes struggle to call time?

<div class="theconversation-article-body"> <a href="https://theconversation.com/profiles/sarah-tillott-1462234">Sarah Tillott</a>, <a href="https://theconversation.com/institutions/southern-cross-university-1160">Southern Cross University</a> and <a href="https://theconversation.com/profiles/diarmuid-hurley-1462235">Diarmuid Hurley</a>, <a href="https://theconversation.com/institutions/southern-cross-university-1160">Southern Cross University</a> Think back to when you met someone for the first time. One of the first questions you asked, or were asked, was likely: “what do you do for work?” It’s a polite, innocuous and socially ingrained way of getting to know more about a person. But it also demonstrates the central role of our professional lives as part of our personal identities. For professional athletes, their careers, exploits and recognition can become the defining aspect of their identity. So what happens when sporting careers end? The transition to retirement, across professions and countries, can be extremely tough to navigate. It can be especially difficult for elite sportspeople, who can experience retirement as a <a href="https://www.sciencedirect.com/science/article/pii/S1469029221001679?casa_token=L4g3UTN8T78AAAAA:VHqcgJN7jIpW82cp32TXq9gIcKFzD2jtf6Jc_OX-3fjpHVnowlp0p8fcqE01BVF3Qjx0bmiRz4T1">loss of identity</a>, connected to their sense of achievement, meaning and control in life. <h2>How retirement impacts athletes</h2> A common saying with many sportspeople is “<a href="https://www.forbes.com/sites/jannfreed/2024/06/29/athletes-die-twice-retirement-as-a-death/">athletes die twice</a>” – once when they retire and again at their death. Former Wallaby Brendan Cannon <a href="https://www.impact.acu.edu.au/lifestyle/after-the-final-siren-helping-athletes-to-adapt-to-life-after-sport">has spoken of</a> this difficulty: <blockquote> [People] want to talk to you about what you used to be, and all you want to focus on is what you want to become. </blockquote> During the transition to retirement, elite athletes can be affected by how they got into their chosen sport, how long they stayed in the system and the variables that either accelerated or ended their careers. Other factors include whether they played a team or individual sport, male vs female pathways, whether their exit from sport was voluntary or involuntary and their age when retiring. My (Sarah) interviews with former professional athletes demonstrate the complexity of retiring from elite sport. To the public, William Zillman, former NRL star turned vet, seems to have it all together. But it didn’t come without hardship, pain and struggles in navigating the harsh terrain of retirement. When asked about his retirement, Zillman said: “[Being an NRL player was] all I knew.” <blockquote> I turned up to work each day, I was told what to do, how to do it and when to do it […] but when I left the system, I think I lost the ability to think for myself. I went from having all the help in the world to very little – it was tough. </blockquote> Retiring from high-performance sport can have profound effects on an athlete’s <a href="https://journals.lww.com/acsm-csmr/fulltext/2020/10000/the_psychological_burden_of_retirement_from_sport.11.aspx/1000">physical and mental health</a>, as well as their social and professional development. While “regular people” usually retire in their 60s or 70s, an athlete’s retirement often occurs earlier, coinciding with crucial phases of career development and <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC10513329/">family planning</a>. Some have to adjust from being highly paid and highly managed to surviving on minimum wages with very little support. “It’s a recipe for disaster,” Ryan James, who considers himself one of the lucky ones, said. A former forward for the Gold Coast Titans, James has been working closely with the Rugby League Players Association (RLPA) with the aim to address some of the complex issues with the transition experience. James knows only too well the struggles some people in the system face as their careers begin to wind down: <blockquote> Many of our players come into the system from disadvantaged and vulnerable backgrounds and while we have made a start, there is more we can be doing. Financial literacy and management is just one avenue we need to tackle. I’ve known too many retired, vulnerable players who were homeless, sleeping in cars with their young families. It’s devastating. </blockquote> It took former English captain turned NRL superstar James Graham a good part of 18 months to re-configure his identity: <blockquote> You come out feeling so lost and alone. Most of your life is spent training, connecting with mates, having a lot of routine and structure to almost nothing. It’s strange and confronting. </blockquote> <h2>What are the major codes doing?</h2> Across various sporting codes there are programs that aim to assist athletes to prepare for retirement. For example, <a href="https://www.rlpa.com.au/past-player-and-transition-program">the RLPA has a program</a> to support athletes who are transitioning. Other major professional Australian codes have similar programs, including <a href="https://www.aflplayers.com.au/app/uploads/2021/10/Player-Retirement-Scheme_Booklet_A5_4.pdf">the AFL</a>, <a href="https://www.thepfa.com/players/union-support/pension-scheme">Professional Footballers Association</a> (soccer) and <a href="https://auscricket.com.au/programs-community/past-player-programs/">cricket</a>. However, whether or not athletes choose to participate in these programs is usually at the discretion of the players. <h2>The importance of planning, preparation and support</h2> One of the key factors influencing how an athlete transitions into life after sport is how much they have <a href="https://theconversation.com/its-not-just-retiring-athletes-who-need-mental-health-support-young-sportspeople-need-it-too-230296">prepared for it</a>. Research with elite athletes from <a href="https://elevateaus.com.au/wp-content/uploads/2021/09/The-end-of-a-professional-sport-career-ensuring-a-positive-transition.pdf">the AFL, NRL and A-League</a> shows those who planned and prepared for life after sport and who had goals, direction and identities beyond sport, experienced more acceptance, autonomy (control) and optimism about the future. On the other hand, those who were unprepared or did not plan ahead experienced negative emotional and psychological states, and struggled to move on. This negative effect is even more pronounced for those who were forced to <a href="https://journals.lww.com/acsm-csmr/fulltext/2020/10000/the_psychological_burden_of_retirement_from_sport.11.aspx/1000">end their career due to injury</a>. <hr /> <iframe id="lQixA" class="tc-infographic-datawrapper" style="border: 0;" src="https://datawrapper.dwcdn.net/lQixA/" width="100%" height="400px" frameborder="0" scrolling="no"></iframe> <hr /> <h2>How to improve the situation</h2> A recent <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC10513329/">scoping review</a> explored the notion of retirement for professional athletes and their ability to adapt to life after sport. It summarised many areas that need more attention: Make athletes aware of what’s ahead Expect that when you leave, it may be hard. Reach out to your club, coach and support services and surround yourself with people who you can talk to and who may be able to help. Athletes should expect that it will take time to adjust, and this adjustment period is crucial for mitigating the adverse effects of retirement. This adjustment period can also significantly reduce the initial negative impacts on their mental and physical health. Tailored support programs Developing tailored support programs that address the specific needs of different sports and athlete sub-groups can help mitigate the challenges associated with retirement. These programs might include career counselling, mental health support and opportunities for continuous involvement in the sports community. A need for further research There is a pressing need for more research to identify effective support mechanisms for retiring athletes. Understanding the types of support that facilitate a smoother transition can help in designing programs and interventions tailored to the unique needs of elite athletes. Additionally, mapping out the factors that aid or hinder the transition across different sports and athlete sub-groups would provide valuable insights.<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/234559/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/sarah-tillott-1462234">Sarah Tillott</a>, Senior Lecturer, Faculty of Health, <a href="https://theconversation.com/institutions/southern-cross-university-1160">Southern Cross University</a> and <a href="https://theconversation.com/profiles/diarmuid-hurley-1462235">Diarmuid Hurley</a>, Lecturer, Faculty of Health, <a href="https://theconversation.com/institutions/southern-cross-university-1160">Southern Cross University</a> Image credits: Shutterstock 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/the-psychology-of-retirement-why-do-so-many-athletes-struggle-to-call-time-234559">original article</a>. </div>

Retirement Life

Supreme Court Justice killed just three weeks after retiring

Former South Australian Supreme Court Justice Malcolm Blue has tragically died, just three weeks after retiring. The 70-year-old had been looking forward to spending quality time with his friends and family after retiring, when he was involved in a tractor accident at a vineyard in Willunga South on Saturday morning. South Australian Police were called to the scene after the accident, where police said he died at the scene from his injuries. After his 13-year role as a Supreme Court judge where he earned the respect of politicians and legal professionals, Blue retired in August, as his family said he had been looking forward to spending more time with his family during his retirement. “We are devastated by Malcolm’s loss. He was a much-loved and loving father, partner and brother, and cherished his family,” his family said in a statement <a href="https://www.adelaidenow.com.au/news/south-australia/justice-malcolm-blue-remembered-as-a-great-south-australian-after-death-in-farming-tragedy/news-story/49330193603000f8a0cbf7933b5b7eea?amp" target="_blank" rel="noopener" data-link-type="article-inline">to News Corp.</a> “Malcolm was always kind, funny, smart and wonderfully supportive for family, friends and legal colleagues. He was both gentle and brilliant and will be missed terribly." “Having achieved so much during a long and distinguished legal career, Malcolm was looking forward to spending more time with his family on the property." “Malcolm will be deeply missed by his partner Angela, daughters Charlotte, Victoria and Alex, three sisters, along with his extended family, many friends, and colleagues in the legal fraternity.” SA Premier Peter Malinauskas praised Blue’s service to the state at a press conference on Sunday. “Mr Blue was a great South Australian who served his community exceptionally well over a very long period of time,” Malinauskas said. “I’m sure that South Australia will appropriately honour him as someone who’s made a major contribution.” Chief Justice of South Australia Chris Kourakis said Blue’s death was felt across Australia’s judiciary and legal profession, saying, “Justice Blue was a pre-eminent intellect and jurist who selflessly devoted his energy to the work of the court and making justice more accessible to the people of South Australia.” Image credits: 7News

Caring

Retirement doesn’t just raise financial concerns – it can also mean feeling unmoored and irrelevant

<div class="theconversation-article-body"><a href="https://theconversation.com/profiles/marianne-janack-681018">Marianne Janack</a>, <a href="https://theconversation.com/institutions/hamilton-college-2966">Hamilton College</a> Most discussions of retirement focus on the financial aspects of leaving the workforce: “<a href="https://www.dol.gov/sites/dolgov/files/EBSA/about-ebsa/our-activities/resource-center/publications/top-10-ways-to-prepare-for-retirement.pdf">How to save enough for retirement</a>” or “<a href="https://www.businessinsider.com/personal-finance/investing/when-can-i-retire">How do you know if you have enough money for retirement</a>?” But this might not be the biggest problem that potential retirees face. The deeper issues of meaning, relevance and identity that retirement can bring to the fore are more significant to some workers. Work has <a href="https://www.theatlantic.com/ideas/archive/2023/03/work-revolution-ai-wfh-new-book/673572/">become central to the modern American identity</a>, as <a href="https://www.theatlantic.com/atlantic-editions/">journalist Derek Thompson bemoans</a> in The Atlantic. And some theorists have argued that work shapes what we are. For most people, as business ethicist <a href="https://www.luc.edu/quinlan/faculty/algini.shtml#:%7E:text=About,the%20Society%20for%20Business%20Ethics.">Al Gini</a> argues, one’s work – which is usually also one’s job – <a href="https://doi.org/10.4324/9780203950555">means more than a paycheck</a>. Work can structure our friendships, our understandings of ourselves and others, our ideas about free time, our forms of entertainment – indeed our lives. I <a href="https://www.hamilton.edu/academics/our-faculty/directory/faculty-detail/marianne-janack">teach a philosophy course about the self</a>, and I find that most of my students think of the problems of identity without thinking about how a job will make them into a particular kind of person. They think mostly about the prestige and pay that come with certain jobs, or about where jobs are located. But when we get to <a href="https://plato.stanford.edu/entries/existentialism/">existentialist philosophers</a> such as <a href="https://plato.stanford.edu/entries/sartre/">Jean-Paul Sartre</a> and <a href="https://plato.stanford.edu/entries/beauvoir/">Simone de Beauvoir</a>, I often urge them to think about what it means to say, as the existentialists do, <a href="https://philosophynow.org/issues/115/On_Being_An_Existentialist">that “you are what you do</a>.” How you spend 40 years of your life, I tell them, for at least 40 hours each week – the time many people spend at their jobs – is not just a financial decision. And I have come to see that retirement isn’t just a financial decision, either, as I consider that next phase of my life. <h2>Usefulness, tools and freedom</h2> For Greek and Roman philosophers, <a href="https://search.worldcat.org/title/Work-what-it-has-meant-to-men-through-the-ages/oclc/780872063">leisure was more noble than work</a>. The life of the craftsperson, artisan – or even that of the university professor or the lawyer – was to be avoided if wealth made that possible. The good life was a life not driven by the necessity of producing goods or making money. Work, Aristotle thought, was an obstacle to the achievement of the particular forms of excellence characteristic of human life, like thought, contemplation and study – <a href="https://classics.mit.edu/Aristotle/nicomachaen.7.vii.html">activities that express</a> the <a href="https://classics.mit.edu/Aristotle/nicomachaen.8.viii.html">particular character of human beings</a> and are done for their own sake. And so, one might surmise, retirement would be something that would allow people the kind of leisure that is essential to human excellence. But contemporary retirement does not seem to encourage leisure devoted to developing human excellence, partly because it follows a long period of making oneself into an object – something that is not free. German philosopher Immanuel Kant distinguished between the value of objects and of subjects by the idea of “use.” Objects are not free: They are meant to be used, like tools – their value is tied to their usefulness. But rational beings like humans, who are subjects, are more than their use value – <a href="https://search.worldcat.org/title/5796114">they are valuable in their own right</a>, unlike tools. And yet, much of contemporary work culture encourages workers to think of themselves and their value <a href="https://www.simonandschuster.com/books/Bullshit-Jobs/David-Graeber/9781501143335">in terms of their use value</a>, a change that would have made both Kant and the ancient Greek and Roman philosophers wonder why people didn’t retire as soon as they could. <h2>‘What we do is what we are’</h2> But as one of my colleagues said when I asked him about retirement: “If I’m not a college professor, then what am I?” Another friend, who retired at 59, told me that she does not like to describe herself as retired, even though she is. “Retired implies useless,” she said. So retiring is not just giving up a way of making money; it is a deeply existential issue, one that challenges one’s idea of oneself, one’s place in the world, and one’s usefulness. One might want to say, with Kant and the ancients, that those of us who have tangled up our identities with our jobs have made ourselves into tools, and we should throw off our shackles by retiring as soon as possible. And perhaps from the outside perspective, that’s true. But from the participant perspective, it’s harder to resist the ways in which what we have done has made us what we are. Rather than worry about our finances, we should worry, as we think about retirement, more about what the good life for creatures like us – those who are now free from our jobs – should be.<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/233963/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/marianne-janack-681018">Marianne Janack</a>, John Stewart Kennedy Professor of Philosophy, <a href="https://theconversation.com/institutions/hamilton-college-2966">Hamilton College</a> Image credits: Shutterstock 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/retirement-doesnt-just-raise-financial-concerns-it-can-also-mean-feeling-unmoored-and-irrelevant-233963">original article</a>. </div>

Retirement Income

Readers response: If you could spend your retirement anywhere in the world, where would you go?

When it comes to retirement, many people decide to spend their golden years travelling the globe. Alternatively, others prefer to stay closer to come to spend valuable quality time with their closest friends and family. We asked our readers where they would spend their retirement if they could choose anywhere in the world, and the response was overwhelming. Here's what they said. Tracee Williams Mason - A cruise ship. Kay Little-Ohmsen - Right where I am. Sunshine Coast and have been for 48 years. Cheryl Barrett - On the Greek island of Naxos. Bruce Hopkins - Travelling around the world. Bob Holl - Cruising the Whitsunday Islands. Steve Tracy - Back to Japan where I spent the 25 happiest years of my life. Terry Dolman - Where I live in South Australia for half the year, Vietnam for the other half. Bev Martin - Florida. Sandra Tiplady Schellings - At the beach! Sonia Davis - Darwin. Sally O'Neill - European cruise and cruising around the Greek Isles. Image credits: Shutterstock

International Travel

Top ten places in Australia to retire

Each year, more and more Aussies are fleeing their hometowns and major cities after they retire for a slower pace of life to fully enjoy their retirement years. These small towns offer retirees more lifestyle benefits and affordable housing, while avoiding the busy hustle and bustle of city life. A new study by fintech firm Citro shared the top ten places retirees are choosing to move to, with New South Wales and Queensland housing the most desirable locations. In the top ten spot was Echuca in Victoria, followed by the Tasmanian town of Launceston, with both towns offering a unique sense of community and beautiful scenery. Three charming seaside towns were named in the next positions, with Wallaroo, the seaside paradise on the Yorke Peninsula in South Australia, taking out the 8th place spot, Mandurah in the south of Perth, Western Australia in 7th, and the town of Rosebud on Victoria's Mornington Peninsula landing in 6th place. Heading inland to the Australian capital was Belconnen in Canberra, ACT, in 5th place, while the whale-watching hub of Hervey Bay in southeast Queensland landed in 4th. Maryborough in Victoria came in 3rd, while Ingham – known as the "Little Italy" of tropical north Queensland – was crowned the 2nd most desirable place for Aussie retirees. However, coming out on top was the quaint country New South Wales town of Armidale, which was dubbed the best place in the country for Australian retirees, largely based on the fact that average house prices are currently sitting at $450,000. Image credits: Visit Victoria / Shutterstock

Retirement Life

Readers response: What is the best thing about retirement?

When it comes to retirement, there are a thousand ways to spend your day now that work isn't a priority. It's the perfect time to travel, take up a new hobby or simply indulge in the endless time to relax in your golden years. We asked our readers what the best thing is about retirement, and the response was overwhelming. Here's what they said. Maree Commens - Six Saturdays and one Sunday. Jill Waterhouse - Everything. Although I'm probably more busy now than when I was working because I can do more things that I like. Chaz Maree - Being with my husband, he worked away for a lot of his career. The day he retired I cried when he pulled up in the driveway knowing he would never leave me again. Stuart Ferguson - Not having someone else plan my travel itinerary for most of the year. Jill Harker - Doing whatever I feel like every day! Claudia Ukalovic - Spending some time with our grandchildren. Faye Cheyne -The alarm gets set only when I choose!! Marlene Hassett - More time at home with my dog. Margie Buckingham - Absolutely love being retired. We can do whatever we like, whenever we like, however we want to! I’m so busy with so many individual pursuits/hobbies, my grandchildren, my elderly parents and executing our renovations that I just don’t know how I fitted everything in while working full time. I still have a cleaner bc I just don’t have time for that…. lol. Vaughan Stephen Brummer - No more alarms and not knowing what day of the week it is. Michael L Carrigg - Not having to tolerate corporate bs ever again. Les Thornborough - Not having to get up and travel to work. Image credits: Shutterstock

Retirement Life

Retirement tips for Australians without a full superannuation safety net

Most people who commenced paid work before the 1992 launch of compulsory employer contributions won’t have enjoyed money going into their retirement fund for the full duration of their working lives. Others have spent most or all of their adult lives as caregivers – stay-home parents, carers for elderly parents or relatives living with disability. Unquestionably valuable work, yet sadly unpaid – meaning no superannuation. Then there other factors impacting retirement savings – the gender pay gap, periods of unpaid leave, unemployment, working abroad, being a low income earner and more. So don’t think you are alone if you don’t have enough in superannuation for a comfortable retirement. Consider the following options to fall back on instead of, or as well as, your super: Age pension This is the most obvious alternative. What fewer realise, though, is that you may still be eligible for a part-pension, even if your assets exceed the eligibility threshold for the full amount. Claiming a part-pension will stretch what super you do have further. Plus, the related concession card entitles you to a range of discounts, reducing your living costs. Don’t overestimate the value of your assets under the pension means test – potentially denying yourself a legitimate source of income. Semi-retirement Consider transitioning to part-time work instead of retiring outright, allowing you to reduce your workload while still generating both income and employer contributions into your super. This could include self-employment – many retirees begin building a business out of their hobby or do paid consulting work within their industry (often a much higher hourly rate than as a permanent employee). Your home If you own your home, chances are you are sitting on a pile of equity. Yes, you would need to sell and move in order to unlock those funds. But it’s tax-free money. And it can be as much of a lifestyle opportunity as a financial one: downsize to a home with less maintenance needs; relocate nearer to grandkids; enjoy a seachange or treechange. Downsizer provisions also allow you to contribute a chunk of the proceeds into your superannuation over-and-above voluntary contribution caps. Investments Certain investments can deliver a lucrative passive income stream, which you can use in lieu of – or alongside – income from super. Think investment property rents, share dividends, even renting out your car/caravan/boat when you’re not using it. Or you could sell investments you own and use the proceeds to top up your super, which is typically more tax effective than holding as cash. Family business/trust If you have a family business or family trust, you may be able to draw down a regular income from it if structured correctly. Doing so over time from operating profits/investment returns, rather than as a lump sum, means a trust can continue as normal without being forced to sell assets or be wound up, while a business can continue trading under family ownership without the remaining directors having to find the cash to buy out your share (though this may be another option to explore with them). Living costs Your living costs are quite different in full-time retirement compared to full-time work. Goodbye to many commuting, clothing, personal grooming, professional development, registration/certification, lunches and coffees, and work-from-home expenses. Hello to greater energy bills (more time at home and no more remote working tax deductions), travel and lifestyle spending. Don’t overlook the power of updating your household spending and investments plan to reflect this new reality, cancel work-related outgoings and cut unnecessary spending. Timing Perhaps the most far-reaching, yet most commonly overlooked, aspect around retirement is timing. For instance: <ul> <li>the later in the financial year you retire, the more employment income you have accrued – potentially pushing you into a higher tax bracket and ballooning your tax bill.</li> <li>the proceeds from investments differ depending on when in the market cycle you sell them.</li> <li>retiring early may reduce employment bonuses, leave payouts, share option entitlements etc.</li> <li>both spouses/partners retiring simultaneously may reduce overall employment earnings, while conversely unlocking greater opportunities to do things together (like travel, shared hobbies, visiting family).</li> </ul> A qualified financial adviser can help you work through your various options and alternatives, allowing you the peace of mind to enjoy your golden years comfortably – whether that is with or without superannuation. 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

"Dignified retirement": Aussies set for $21k cash boost

The average Australian is set to receive a $21,000 cash boost following a change to superannuation contributions. From July the superannuation guarantee increased from 11 to 11.5 per cent, meaning that the compulsory superannuation payments made by employers have risen. This means that an average worker earning around $72,000 would pocket an extra $21,000 at retirement as a result of the permanent increase, according to an analysis by the Treasury Department. “Wages growth and tax cuts are putting cash in people’s pockets now, and our increase to the super guarantee will put cash in people’s pockets for the future,” Treasurer Jim Chalmers said. “This will make a meaningful difference for millions of Australians who deserve a dignified retirement. “The superannuation guarantee has increased three times under our government.” The government has been progressively increasing the super guarantee rate until it hits 12 per cent, which will come into effect from July 2025. The concessional super contributions cap - the amount that you can invest into your super each year without copping extra tax and includes employer payments - also increased on July 1, up from $27,500 to $30,000 per year. In addition to this, the after-tax super or non-concessional super contributions cap has also been increased from $110,000 to $120,000. Image: Shutterstock

Retirement Income

Couple's retirement plans "ruined" after investment fail

A couple from Brisbane claim their retirement has been "ruined" after an investment went wrong. After first visiting Coffs Harbour in 1976, Raymond and Wendy Dibb saw potential in the area, land-banking 2.7 hectares of rural acreage in the late 1980s. The couple bought the land in Korora for $118,000 in 1988 and sat on it for decades, waiting for the day they could make their retirement fortune by subdividing and selling it off. However they never got the chance, as the land was compulsorily acquired by Transport for NSW back in 2021 in order to make way for the Pacific Highway bypass. The $2.2 billion highway is now currently being built over the top of the block, which will be the site of a major intersection when the project opens to traffic in late 2026. The couple believed the land was worth a hefty $5.5 million, although Transport NSW valued it at just $1.062 million back in 2021. A gruelling three-year legal battle finally ended in the NSW Court of Appeal on June 28th, with the Dibbs being awarded $1.359 million in compensation, although they argued they deserved more. “This was a pretty significant financial transaction that’s really gone bad for us,” Raymond Dibb told the <a title="www.smh.com.au" href="https://www.smh.com.au/national/nsw/couple-loses-property-fight-after-highway-swallows-5-5-million-dream-20240703-p5jqrx.html" target="_blank" rel="noopener">Sydney Morning Herald. </a>“And it’s got nothing to do with our investment choices." “We’re talking about landowners just minding their own business, and someone comes knocking on your door, saying, ‘We’re going to take your land’”. Mr Dibb slammed the entire process of the acquisition, saying that he believed an independent body should conduct compulsory acquisitions rather than the government. In the Land and Environment Court, Justice Nicola Pain ended up increasing the couple’s compensation to $1.42 million after it was determined the land could have produced seven residential lots with less risk and cost. She found they were also entitled to money to cover fees and stamp duty on a replacement block for their land bank, which the couple argued they would need to buy to delay paying capital gains tax. Transport for NSW argued that they should not have been granted any money for stamp duty, with Justices Kristina Stern, Anthony Payne and Jeremy Kirk agreeing. This was stripped from the award and they refused to revalue the block of land. The couple were also ordered to pay the government’s costs of the two-day appeal. Mr Dibb is considering seeking leave to appeal against the High Court’s decision. He added that the couple’s retirement plans had been ruined by Transport for NSW, which originally offered just $470,000 for the land back in 2019. A spokesperson for Transport for NSW said the government body “empathises with residents and landowners affected by property acquisitions” and said they always “try to minimise the need for property acquisition”. Image credits: Shutterstock

Money & Banking

Pop legend dies just days after retiring

One of the founding members of British pop band Black Lace has passed away at the age of 70, just days after announcing his retirement. Colin Gibb was best known as the longest-standing member of the band, famed for their tunes such as the Aussie hit Agadoo and Do the Conga. Black Lace became a household name after finishing seventh for the UK at the Eurovision Song Contest in 1979 with their song, Mary Ann. On Sunday, Gibb's wife Sue Kelly told fans her “dearest husband” had died in the afternoon, sharing the news on Facebook. Alongside a photo of the couple, she wrote, “I love you Colin, spent 22 years living your Agadoo dream, we were due to retire to Spain on Thursday, you were so happy, so looking forward to our new life, now you’re gone." “As we used to say, always love you forever.” Just days before his passing, Gibb took to his social media page to tell fans he would be playing one final show that week as he thanked them for their support over the years. He wrote, “Well all good things must come to an end. I have decided to retire." Despite numerous line-up changes over the years, Gibb – born Colin Routh – stuck with Black Lace for decades, seeing them through the height of their success in the 1980s. Image credits: Facebook

Caring

Australian superannuation changes and your retirement savings

Superannuation has been a working retirement model plan for years, and the government makes constant changes to ensure these approaches remain feasible in today’s society. The Australian government announced changes to superannuation in February 2023, and since then, there have been new considerations for employers to deliberate over regarding super account plans for employees. Here is a look at the most recent alterations and what they mean for your super account and retirement plans. <h2>Understanding Superannuation</h2> Superannuation, or “super,” is money put aside in an account throughout an employee’s work experience. The sole purpose is for these individuals to have something to live on when they retire. For most people, it involves their employers taking from their salary and putting aside the dictated sum in a super account. These contributions are paid outside your wages or salary and are based on existing laws on how much recruiters must pay. There are also age and earning limits involved. For instance, you may not be eligible for a super account if you’re under 18 and work less than 30 hours weekly. Eligible individuals have to work over 30 hours weekly and have an earning cap of $450 or more (before tax) to be paid super. These funds are typically invested in assets like stocks, bonds, real estate, and others that can help yield interest over time. You can also manage your investments through the forex market using an advanced <a href="https://www.oanda.com/au-en/trading/platforms/" target="_blank" rel="noopener">Australian trading platform</a>. <h2>Recent Superannuation Changes in Australia</h2> <img src="https://oversixtydev.blob.core.windows.net/media/2024/06/Australian-superannuation-changes-and-your-retirement-savings01.jpg" alt="" width="1280" height="720" /> Following the introduction of the Superannuation Bill in 2016, a series of changes have been made to the annotation laws. On November 9, 2016, the Australian government introduced the bill, which was meant to help preserve the objectives of superannuation in the legislation. From the onset, this model aimed to provide income in retirement to replace or supplement the age-pending laws. The objective of this scheme has remained the same, and changes made over the years have been towards improving efficacy rather than impeding its relevance. The most recent of these reforms took place in 2013, and below is a summary of what these changes entail and how they affect retirees. <h2>Superannuation on Paid Parental Leave</h2> One of the first alterations was the announcement that superannuation would be payable to the Commonwealth’s Parental Leave Scheme to close the gender super gap. This means that superannuation will be paid on Government-funded Paid Parental Leave (PPL) for parents who give birth or adopt children on or after July 1, 2025. It’s easy to understand why this measure was introduced. When implemented, it is expected to benefit over 18,000 parents annually. Also, it will bring more balance to the ratio of payables between women and men. <h2>Increase in Super Guarantee</h2> The May 2024 Federal Budget also revealed the legislated increase of the Sper Guarantee to 12% will remain the same. From July 1, 2024, the fee will increase to 11.5%, after which an additional 0.5% will be added on July 1, 2025. Employees can look forward to this increase as some extra long-term payment to their retirement funds. Although it might seem like a slight increase, the addition over the long-term working period accumulates too much and could make a significant difference, especially with compound interest. <h2>Super Payment at the Time of Salary and Wages</h2> <img src="https://oversixtydev.blob.core.windows.net/media/2024/06/Australian-superannuation-changes-and-your-retirement-savings02.jpg" alt="" /> This particular change was proposed but is yet to be legislated. It states that from July 1, 2026, employers will be required to pay their workers suer at the same time they pay salary and other wages. This change aims to better track these payments and mitigate issues, such as non-payments or discrepancies. The Australian Taxation Office (ATO) also revealed that monitoring compliance from employers to their employees will be easy. Furthermore, there are reasons to believe this will bring better yields on the end of the receivers since fees paid faster will compound better ad yields and higher interests. <h2>Additional Changes to Be Legislated</h2> From July 1, 2025, a 30% concessional tax rate will be implemented for future earnings for balances over $3 million rather than the usual 15%. This alteration will impact over 80,000 people between 2025 and 2026. Lastly, the existing 2-year freeze on deeming rates at 2.25% has been shifted forward until June 30, 2025. This translates to retirees <a href="https://www.theguardian.com/money/2024/mar/26/little-planning-for-looming-retirement-crisis-blackrock-chief-warns" target="_blank" rel="noopener">continuing to benefit</a> from the present rate of 0.25% until the new allocated time. This measure can help alleviate the cost of living and is currently benefiting over 876,000 income support recipients and 450,000 aged pensioners. <h2>Maximising Your Retirement Savings With Super</h2> Super savings were introduced to allow employees to save a percentage of their earnings towards retirement so they have something to live on in their non-working years. The recent changes will surely improve things, and all you have to do is be sure that your employee is paying your super and doing so at the expected time. You can use the <a href="https://www.ato.gov.au/calculators-and-tools/super-estimate-my-super" target="_blank" rel="noopener">“estimate my super”</a> tool offered by the government to estimate how much your employee should pay. All images: Supplied. In collaboration with OANDA.

Money & Banking

Five tips to help you start new hobbies in retirement

<div class="theconversation-article-body"><a href="https://theconversation.com/profiles/alison-bishop-1522973">Alison Bishop</a>, <a href="https://theconversation.com/institutions/university-of-east-london-924">University of East London</a> Retirement can be an exciting but also scary prospect for many. How you fill your time is totally up to you, but with so many choices it can be a bit daunting. But it’s important to make sure you keep active, physically and mentally. Hobbies can <a href="https://www.careuk.com/help-advice/why-are-long-lost-hobbies-important-for-older-people">increase wellbeing</a> by boosting brain function, enhancing social skills and improving fine motor skills. <a href="https://www.researchgate.net/publication/366160647_Psychological_benefits_of_hobby_engagement_in_older_age_a_longitudinal_cross-country_analysis_of_93263_older_adults_in_16_countries">A study carried out in 2022</a> found that spending time on hobbies was associated with lower symptoms of depression and a perceived increase in a person’s sense of health, happiness and overall life satisfaction. However, many older people don’t take up hobbies for all sorts of reasons. This might include fears that they are not as good at something in their older age as they were when they were younger. This fear of trying new things can lead to increased feelings of <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4338142/">loneliness and isolation</a>. Here are five tips using <a href="https://ppc.sas.upenn.edu/sites/default/files/ppintroarticle.pdf">positive psychology</a> that could help you or someone in your life if they are scared or nervous about picking up a hobby. <h2>1. Broaden your strengths</h2> Our idea of what we are good at is formed at a very young age and often reflects subjects that we were good at in our school days. Positive psychology’s “<a href="https://www.viacharacter.org/character-strengths-and-virtues">theory of strengths</a>” encourages us to think more broadly about what constitutes a strength. For instance, it considers curiosity, kindness and bravery as strengths. When applied to choosing a hobby, it means that if you believe one of your strengths is kindness, you could consider working in outreach or charity as a hobby or spending time speaking with people who are housebound. <h2>2. Find activities you already enjoy</h2> The “<a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC1693418/pdf/15347528.pdf?inf_contact_key=9944754ba1372fa9ce5ee1421d8427bc">broaden and build theory”</a> suggests that when we feel positive emotions such joy or love, we are more likely to engage in new activities, thoughts and behaviours. It follows then, that if you look at times in your life when you experience these emotions this could help you start a new hobby. So, if you enjoy walking in the countryside, then the theory suggests that those feelings would enable you to join a rambling club. <h2>3. Remember moments you’ve lost track of time</h2> Another way to identify an activity that would be good to do is by using “<a href="https://www.medicalnewstoday.com/articles/flow-state#what-it-is">flow theory”</a>. This suggests that when we are doing something that we become completely absorbed in, that our brainwave patterns change and we can lose track of time. For this to happen, we need an activity that is meaningful to us to complete, with just the right amount of challenge so that it is not too easy or too hard. An exercise that reveals your personal flow template involves looking back on your life to find as many times as possible when you’ve been doing something and completely lost track of time. Write these down and see if these moments have anything in common. For example, are they all creative activities or all outdoors and physical? This will reveal something about yourself and the type of activity that is aligned with who you are, and could suggest new hobbies. <h2>4. Be kind to yourself</h2> “<a href="https://self-compassion.org/">Self-compassion theory</a>” teaches us the importance of being as kind to ourselves as we would be to a friend. When we are thinking about what we are good at, we can be unkind to ourselves by comparing ourselves unfavourably to others or to an imagined high standard. Self-compassion theory states that our imperfections make us human, and it is our shared knowledge of this that connects us to others. Where a goal in an activity is kindness with ourselves and those doing the activity with us rather than performance, we can access a new more meaningful reason to take part in something. <h2>5. Imagine your perfect day</h2> The last tip from positive psychology involves creating <a href="https://www.thepositivepsychologypeople.com/reflections-on-a-beautiful-day/">a story of the perfect average day</a> and then planning to actually live it. How do your hobbies fit into this? How does this day tap into your broadened idea of your strengths? How does it include kindness to yourself and others? It also helps to identify goals either for retirement more generally or for participating in a hobby. By picturing the perfect average day you can create more meaning and purpose in life by seeing how all the parts of your life fit together. It also reveals short term goals for example, if you plan to go to an art club but can’t get there, then a goal could be asking for a lift from another club member. When these pieces are in place, hope is ignited, and a vision created of how life can go forward so that you really can live your best retired life. <a href="https://theconversation.com/profiles/alison-bishop-1522973">Alison Bishop</a>, Lecturer in Positive Psychology Coaching, <a href="https://theconversation.com/institutions/university-of-east-london-924">University of East London</a> Image credits: Shutterstock This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/five-tips-to-help-you-start-new-hobbies-in-retirement-226764">original article</a>. </div>

Retirement Life

How do I plan for my retirement? Step one – start right away

<div class="theconversation-article-body"><a href="https://theconversation.com/profiles/bomikazi-zeka-680577">Bomikazi Zeka</a>, <a href="https://theconversation.com/institutions/university-of-canberra-865">University of Canberra</a> Planning for retirement is important because it will help you build the nest egg you’ll need to financially sustain your retirement years. Past <a href="https://www.tandfonline.com/doi/epdf/10.1080/03601277.2012.660859?needAccess=true">studies</a> have shown that those who plan for their retirement are more likely to be better off at retirement compared to those don’t. The sooner the planning process gets underway, the better. This gives your money more time to grow by generating investment returns. And the income from your first job is your first opportunity to save for retirement. As the saying goes: “The best time to plant a tree was 20 years ago. The second best time is now.” As people <a href="https://www.statssa.gov.za/?p=15601">can expect to live longer</a>, they must save more for retirement so that they don’t outlive their savings. This is particularly true given that the pensions landscape worldwide has undergone some major changes. In the past, governments and employers provided retirement income for individuals through government social security benefits and employment-based retirement funds. Because of increasing life expectancies, pension plans that guaranteed a retirement benefit to employees are now rare. Employees are now responsible for making contributions towards their own pensions as well as choosing the investments offered by the pension fund. Since employers are no longer responsible for funding their employees’ retirement and governments lack resources to provide a universal state pension, each person is ultimately responsible for ensuring they have enough retirement savings. So it’s very important to know the basics of the retirement planning process. As a researcher, I’m interested in how people use financial products to overcome economic challenges and build wealth. One of the things I investigate is whether planning for retirement leads to better retirement outcomes. For instance, my <a href="https://www.researchgate.net/profile/Bomikazi-Zeka-2/publication/340130176_Retirement_funding_adequacy_in_black_South_African_townships/links/5e8bf3924585150839c6408b/Retirement-funding-adequacy-in-black-South-African-townships.pdf?_sg%5B0%5D=started_experiment_milestone&origin=journalDetail&_rtd=e30%3D">research</a> has found that individuals whose financial affairs are in order are more likely to maintain their standard of living at retirement. Given that everyone’s financial situation is unique, it’s always a good idea to speak to a financial planner for tailored financial advice. If you haven’t given retirement planning much thought or don’t know where to start, here are four points to help get the ball rolling. <h2>What are my retirement goals?</h2> Retirement goals make you think about what you want to achieve by the time you retire and what you need to do to achieve it. Some people may have a goal in mind about when they want to retire, or how much wealth they’d like to have by the time they retire. And since wealth has different meanings for different people, others may think about maintaining or improving their standard of living at retirement. Once you’ve thought about your retirement goals, the <a href="https://corporatefinanceinstitute.com/resources/management/smart-goal/">“smart” goals</a> framework is a useful guide. It outlines that goals should be: specific, measurable, attainable, relevant and time-bound. When goals are clear, within reach, achievable, realistic and time-sensitive, they become a blueprint to help you turn them into a reality. <h2>How do I start saving for retirement?</h2> For those who have a job that comes with retirement fund membership, a workplace pension is used to provide for retirement. But there are also other options available to help you save. For instance, retirement annuity funds are voluntary retirement savings. Personal assets such as <a href="https://www.allangray.co.za/what-we-offer/unit-trust-investment/#fund-3">unit trusts</a> or <a href="https://www.gov.za/faq/money-matters/how-can-i-make-tax-free-investment">tax-free investments</a> can also be used as a savings tool. Unit trusts are generally better suited for people willing to take on risk because their value is tied to the movements of financial markets. In other words, they can generate positive returns but they can also lose value. The drawback of tax-free investments in South Africa is that they have a lifetime contribution limit. You can’t use them to save more than R500,000 (US$27,400). Each of these options has its advantages and disadvantages and what works best for one person may not be best for another. But there are several ways to save for retirement depending on your financial situation and retirement goals. Getting professional advice will help you determine what’s best for you. <h2>Will my retirement savings be enough?</h2> Once you’ve set your retirement goals and have a retirement savings plan in place, you can calculate whether you are saving enough to achieve your retirement goals. For example, if your retirement goal is: “I want to retire at the age of 65 years with an income equivalent to R35,000 (US$1,900) per month” then you can use a <a href="https://www.sanlam.co.za/tools/Pages/retirement.aspx">retirement calculator</a> to track your progress and determine whether you need to make adjustments to meet your goals. You might have to increase the monthly amount you’re putting away for retirement or reconsider your retirement age. The retirement calculators are also a useful tool for regular check-ins on your progress should your financial situation change – for example, if you change employers and earn a different salary. <h2>What other issues should I consider?</h2> It’s also important to think about your lifestyle and priorities. For instance: <ul> <li> do you aim to retire with your mortgage settled? </li> <li> are there debts you plan to clear before you retire or children who need financial support at retirement? </li> <li> would you like to renovate your home? </li> <li> would you like to buy a new car when you reach retirement age? </li> </ul> Another important consideration is healthcare costs. Many people assume that they will be able to work indefinitely and overlook the fact that healthcare costs may increase with age. <h2>Starting early matters</h2> Many people plan to work after retirement age, while others don’t plan to retire at all. It may be that they can’t afford to. They may have accessed their retirement benefits too soon, made inconsistent retirement fund contributions, or had to pay high administrative costs that eroded the final value of a retirement payout. So best be prepared. Retirement may seem like a distant event to plan and save for, especially when there are more pressing financial needs. It’s important to think about the financial decisions you make now that may cost you in the future. If you start to plan for your retirement now, your future self will thank you for it.<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/230553/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/bomikazi-zeka-680577">Bomikazi Zeka</a>, Assistant Professor in Finance and Financial Planning, <a href="https://theconversation.com/institutions/university-of-canberra-865">University of Canberra</a> Image credits: Shutterstock 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-do-i-plan-for-my-retirement-step-one-start-right-away-230553">original article</a>. </div>

Retirement Income

Stay or go? Most older Australians want to retire where they are, but renters don’t always get a choice

<a href="https://theconversation.com/profiles/christopher-phelps-378137">Christopher Phelps</a>, <a href="https://theconversation.com/institutions/curtin-university-873">Curtin University</a>; <a href="https://theconversation.com/profiles/rachel-ong-viforj-113482">Rachel Ong ViforJ</a>, <a href="https://theconversation.com/institutions/curtin-university-873">Curtin University</a>, and <a href="https://theconversation.com/profiles/william-clark-1488932">William Clark</a>, <a href="https://theconversation.com/institutions/university-of-california-los-angeles-1301">University of California, Los Angeles</a> As Australia’s population gets older, more people are confronted with a choice: retire where they are or seek new horizons elsewhere. Choosing to grow old in your existing home or neighbourhood is known as “ageing in place”. It enables older people to stay connected to their community and maintain familiarity with their surroundings. For many, the decision to “age in place” will be tied to their connection to the family home. But for many, secure and affordable housing is increasingly <a href="https://theconversation.com/ageing-in-a-housing-crisis-growing-numbers-of-older-australians-are-facing-a-bleak-future-209237">beyond reach</a>. This choice may then be impeded by a lack of suitable accommodation in their current or desired neighbourhoods. Our recently published <a href="https://doi.org/10.1177/01640275231209683">study</a> asks what motivates older homeowners and renters to age in place or relocate, and what factors disrupt these preferences. It suggests older renters are often not given a fair choice. <h2>Most older Australians want to age in place</h2> Having the option to age in place enables older people to retain autonomy over their lifestyles and identity, promoting emotional wellbeing. Using 20 years of data from the government-funded Household, Income and Labour Dynamics in Australia (HILDA) survey, we tracked the preferences of Australians aged 55 and over. Encouragingly, most older Australians are already where they want to be. Two-thirds (67%) of respondents strongly preferred to stay in their current neighbourhood, and an additional one-fifth (19%) had a moderate preference to stay. Only 6% showed a moderate or strong desire to leave. Ageing in place is then the natural choice for a vast majority of older Australians. <iframe id="s3LTM" class="tc-infographic-datawrapper" style="border: none;" src="https://datawrapper.dwcdn.net/s3LTM/1/" width="100%" height="400px" frameborder="0"></iframe> Our study highlights several motivations for people to stay put as they retire. For homeowners, family ties matter. Owners with children residing nearby were around one and a half times more likely to have a higher preference to stay. Older owners might then have a reason to call on their substantial <a href="https://theconversation.com/the-housing-wealth-gap-between-older-and-younger-australians-has-widened-alarmingly-in-the-past-30-years-heres-why-197027">housing wealth</a> and keep their children nearby via the <a href="https://360info.org/how-to-help-the-young-buy-a-home/">“bank of mum and dad”</a>. For renters, how long they stay is important. Those renting their home for 10 years or more were 1.7 times more likely to have a higher preference to stay than short-term renters. <h2>Renters face the most disruption</h2> The survey enabled us to follow where older people lived a year after they provided their preferences. This helped us gauge how often they turned their desires into reality. The chart below indicates that private renters face greater obstacles to ageing in place. Around one in 10 private renters that desired to age in place were disrupted – they wanted to stay in their neighbourhood but didn’t. This suggests they moved out of their neighbourhood involuntarily. Only 2% of homeowners and social renters experienced the same disruption. However, for those in these tenures that did not desire to age in place, involuntary immobility was a greater concern. Only 15% of those that wanted to leave succeeded, leaving the vast majority “stuck in place”. <iframe id="IlliV" class="tc-infographic-datawrapper" style="border: none;" src="https://datawrapper.dwcdn.net/IlliV/1/" width="100%" height="400px" frameborder="0"></iframe> The private rental market is the least secure of tenures, and so private tenants are often exposed to involuntary moves. Australia’s private rental system is lightly regulated compared to many other countries, creating tenure insecurity concerns. On the other hand, social renters were particularly susceptible to involuntary immobility. Social housing is scarce in Australia and subject to <a href="https://theconversation.com/its-soul-destroying-how-people-on-a-housing-wait-list-of-175-000-describe-their-years-of-waiting-210705">lengthy waiting lists</a>. A neighbourhood move often requires transferring to the less affordable and less secure private rental housing. Even after considering financial status, social renters were four times as likely to be stuck as compared to private renters. Social tenants are strongly deterred from moving in the current system. <h2>How can we support older Australians’ preferences?</h2> Our study exposes some barriers in the housing system that hinder people from being able to age in place, or move when they want to. Clearly, older renters enjoy fewer protections against disruptions to their preferences to age in place than older owners. For private renters, tenure insecurity in the <a href="https://theconversation.com/insecure-renting-ages-you-faster-than-owning-a-home-unemployment-or-obesity-better-housing-policy-can-change-this-216364">private rental sector</a> is a key reform priority. This can be achieved through stronger regulation that improves tenants’ rights. For example, more states could adopt <a href="https://theconversation.com/how-5-key-tenancy-reforms-are-affecting-renters-and-landlords-around-australia-187779?utm_source=twitter&utm_medium=bylinetwitterbutton">recent regulatory rental reforms</a> that support the rights of pet owners and protect against no-grounds evictions. Large numbers of older private renters also face severe <a href="https://www.oldertenants.org.au/publications/ageing-in-a-housing-crisis-older-peoples-housing-insecurity-homelessness-in-australia">rental stress</a>, which may force them to move from their preferred neighbourhood. <a href="https://theconversation.com/1-billion-per-year-or-less-could-halve-rental-housing-stress-146397">Commonwealth rent assistance reform</a> would alleviate some of this stress through an increase in rates and better targeting. An increase in the supply of social housing would play an important role in improving both tenure security and housing affordability. Older social renters enjoy fewer obstacles to ageing in place than older private renters. However, if social renters want to move into the private rental market to relocate, they face difficulty securing accommodation. This will likely discourage moves as it would require sacrificing the tenure security offered by social housing. However, policy initiatives that improve the <a href="https://www.ahuri.edu.au/sites/default/files/migration/documents/PES-358-Lessons-from-public-housing-urban-renewal-evaluation.pdf">quality of the public housing stock</a> can reduce feelings of being stuck. As <a href="https://www.aihw.gov.au/reports/australias-welfare/home-ownership-and-housing-tenure">homeownership rates decline</a> both among young people and those nearing retirement, we can expect the population of older renters to grow. Overall, our findings support a strong case for policy reform in the rental sectors to address the needs and preferences of older renters.<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/218024/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/christopher-phelps-378137">Christopher Phelps</a>, Research Fellow, School of Accounting, Economics and Finance, <a href="https://theconversation.com/institutions/curtin-university-873">Curtin University</a>; <a href="https://theconversation.com/profiles/rachel-ong-viforj-113482">Rachel Ong ViforJ</a>, ARC Future Fellow & Professor of Economics, <a href="https://theconversation.com/institutions/curtin-university-873">Curtin University</a>, and <a href="https://theconversation.com/profiles/william-clark-1488932">William Clark</a>, Research Professor of Geography, <a href="https://theconversation.com/institutions/university-of-california-los-angeles-1301">University of California, Los Angeles</a> Image credits: Shutterstock 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/stay-or-go-most-older-australians-want-to-retire-where-they-are-but-renters-dont-always-get-a-choice-218024">original article</a>.

Retirement Income

Read this before choosing a retirement village

Making the move from your own home into a retirement village is a huge decision. And with more than 2,000 villages around the country there’s a world of choice. These are some of the things you need to know before you make the move. Get your priorities straight Think about the kind of village you can see yourself living in. Make a list of features that you absolutely must have and a list of those that are desirable but not essential. Don’t be tempted to compromise on the first list because you could end up very unhappy in the long run. Do your research and find a village that meets your requirements. Don’t rush into somewhere that you aren’t completely sure about. Money, money, money Retirement villages aren’t cheap so you’ll need to be realistic about what it’s going to cost and how much you have to spend. It’s a good idea to see a professional financial adviser to get a complete picture of your financial situation, including things like selling your current home, super and any shares you own. You will have to sign a contract with the village before you move in, so get your financial adviser or a lawyer to go over it with you and make sure you understand all your obligations. Location is key As with any move, you need to think carefully about location. If the village is a long way from your current residence it can drastically alter your social life and connections with friends and family. You also need to think about proximity to public transport, shops, health services and community activities. Choose your style Retirement villages range from self-contained independent living to serviced accommodation and residential aged care. They also vary greatly in size from just a handful of units to villages with hundreds of residents. Larger villages tend to have more facilities, so if you’re an active person who loves to swim or play tennis then this could be the choice for you. However, extra facilities come with extra costs so if these aren’t important to you then you could find a cheaper option. You’ll also want to find out about communal dining options and social activities or groups within the village. Get the help you need As with accommodation styles, there is a wide range in the levels of assistance available. This can be as basic as having a cleaner come once a week right up to full nursing care. Some villages have the option to raise your level of care as you age or become unwell, which can be a better option than moving into a new village. Stick to the rules Can visitors stay the night? Can I have a pet? Is there a system for resolving disputes? You’ll want to be familiar with the rules and regulations of the village so read the fine print in your contract or ask questions before you commit. Image credits: Getty Images

Retirement Life

The one thing you must do before retirement

When you think about planning for retirement, the standard advice is to take a thorough look at your superannuation and finances. Although money is undoubtedly an important aspect of retirement planning, making a plan for your emotion and physical wellbeing is just as crucial. New research from the UK has found that retirement can have a negative impact on your mental and physical health. The study, published by the Institute of Economic Affairs, looked at the impact of retirement on 7,000 people aged 50 to 70, and found that while retirement gives most people a small health booth, over the medium to long-term it causes a “drastic decline in health”. For both men and women, retirement decreases the likelihood of "very good” or "excellent" self-reported health by 40 per cent, increases risk for depression by 40 per cent, and diagnosis of a physical illness by 60 per cent. The study’s lead author, Gabriel Sahlgren, noted: "Work, especially paid work, gives many people a sense of purpose. Losing that may lead to declines in health." The lesson: Make a plan for your emotional and physical health. “Don't wait until you retire to decide how you're going to keep busy,” Dave Bernard, retirement blogger and author of Are You Just Existing and Calling it a Life?, told Prevention, adding, “And you need to look well beyond the first six months.” Just as it’s necessary to make sure your finances are in order before retirement, it’s crucial to ask yourself: What will my new sense of purpose in retirement be? “Many times, adults might not think about what it actually means to be retired, or they think about retirement in abstract terms,” says Angela Curl, an assistant professor in the University of Missouri School of Social Work. She says you need to make concrete plans for retirement. “If you want to volunteer when you are retired, ask yourself where and how often. Having specific plans and steps to follow will help you enter retirement more easily,” says Curl. Creating a plan of how you’ll spend your time when you retire will keep you mentally and physically strong, ensuring that you’ll be healthy enough to enjoy your well-deserved retirement. Image credits: Getty Images

Retirement Life

Most expensive countries to retire in revealed

Australia has become one of the most expensive countries in the world to spend your retirement, with experts sharing how much we need to retire comfortably. Australia is now regarded as the world's seventh most expensive place to retire, and is also a major target for scammers, given the country’s superannuation initiative. Swedish loan broking group Sambla calculated Australians need at least $640,911 to retire comfortably, with this hefty amount one of the biggest in the world. Australia's 4.1 per cent inflation rate is also higher than most of the rich world, which means a retiree would need $34,221 a year to survive, provided they aren't renting. Australia is also a target for scammers, having $3.6trillion in superannuation savings, or the fourth highest pool in the world. In comparison, Switzerland has been named the most expensive place in the world to retire, requiring $927,034 in retirement savings to grow old in the Alps, translating into annual costs of $46,632. Check out the entire top ten list of most expensive countries to retire below. 10. France. $583,950 in retirement savings required 9. Austria. $598,434 in retirement savings required 8. Iceland. $607,558 in retirement savings required 7. Australia. $640,911 in retirement savings required 6. Canada. $665,752 in retirement savings required 5. Liechtenstein. $772,984 in retirement savings required 4. Singapore. $773,456 in retirement savings required 3. Qatar. $791,029 in retirement savings required 2. Monaco. $795,431 in retirement savings required 1. Switzerland. $927,035 in retirement savings required Image credits: Getty Images

Retirement Life

It’s not just about accumulating super. Australians need to learn how to spend their retirement savings

<a href="https://theconversation.com/profiles/marc-olynyk-1493791">Marc Olynyk</a>, <a href="https://theconversation.com/institutions/deakin-university-757">Deakin University</a> Australia’s superannuation and retirement income system is complex and difficult to navigate. Retirees need to make decisions on numerous issues where they have less than full information and understanding, both financial and non-financial. They also require access to retirement products to help them manage and balance income needs against longevity risk. Recognising these issues, the government released a <a href="https://treasury.gov.au/consultation/c2023-441613">discussion paper</a> this month seeking views on three key issues: <ol> <li> helping super fund members navigate the retirement income system </li> <li> supporting superannuation funds to deliver better services </li> <li> making retirement income products more accessible. </li> </ol> Australia has one of the largest and most sophisticated pension systems in the world. Valued at more than <a href="https://www.apra.gov.au/quarterly-superannuation-statistics">A$3.5 trillion</a> as at September 2023, and is the <a href="https://www.thinkingaheadinstitute.org/research-papers/global-pension-assets-study-2023/">5th largest pension scheme</a> in terms of asset size. It is also the <a href="https://www.mercer.com/insights/investments/market-outlook-and-trends/mercer-cfa-global-pension-index/">5th most highly rated retirement income system</a> internationally behind the Netherlands, Iceland, Denmark and Israel. <h2>What is wrong with the super system?</h2> But while the super system ranks highly in terms of integrity and sustainability, the numbers are not as flattering when it comes to “adequacy”. Adequacy is the level of income available to retirees depending on their different circumstances. According to a recent <a href="https://www.mercer.com/insights/investments/market-outlook-and-trends/mercer-cfa-global-pension-index/">study</a>, Australia is ranked 20th out of 47 worldwide on the adequacy index. <a href="https://www.investmentmagazine.com.au/2023/02/purpose-of-super-law-to-herald-tax-reform/">Reform</a> in the pre-retirement phase of Australia’s retirement income scheme is ongoing and designed to support accumulating wealth for retirement. These ongoing reforms have been designed to make superannuation easier to understand and to reduce much of the decision making required. They’ve been needed because of an apparent lack of skills, interest and financial literacy among Australians. While the message that we need to save to be comfortable in retirement is getting through, the lack of information about how to manage these savings once we retire means many retirees are left to navigate the complex system as best they can. Given the complexity and volatility of Australia’s financial system, it’s hardly surprising many of the decisions made by retirees don’t produce the best financial results. For example, more than <a href="https://treasury.gov.au/consultation/c2023-441613">84%</a> of retirement savings are held in account-based pensions which, if not properly managed, can run out. This is despite government and community awareness that outliving your savings is a real possibility. About 50% of retirees currently withdraw at the minimum pension rate, which means many people experience a lower standard of living than what would normally be expected with the super they have accumulated. This can result in wealth not being used and instead being passed on to the next generation. <h2>Help is needed now because the retiree sector is booming</h2> Over the next decade there is going to be a big increase in the number of people retiring and transitioning from the accumulation phase of their super to the pension phase. It’s estimated <a href="https://treasury.gov.au/consultation/c2023-441613">2.5 million</a> Australians will move to the retirement phase in this period. Following the 2014 <a href="https://treasury.gov.au/publication/c2014-fsi-final-report">Financial System Inquiry</a>, the government introduced the <a href="http://www5.austlii.edu.au/au/legis/cth/consol_act/sia1993473/s52.html">Retirement Income Covenant</a> in 2022 to force super fund trustees to develop a strategy that would provide better retirement outcomes for their members. The strategy is based on retirees maximising their expected retirement income, managing expected risks to their retirement income and having flexible access to super funds during their retirement. A 2022-23 review conducted by <a href="https://asic.gov.au/regulatory-resources/find-a-document/reports/rep-766-implementation-of-the-retirement-income-covenant-findings-from-the-apra-and-asic-thematic-review/">Australian Prudential Regulation Authority and the Australian Securities and Investments Commission</a> found while trustees were providing more help to retirees, overall there was a lack of progress and urgency among trustees to improve retirement outcomes. <h2>How the system could be improved</h2> Several proposals have been put forward to improve the experiences and decision-making of retirees. These have included: <ul> <li> improved support from and education by superannuation fund trustees </li> <li> changing how people view their super savings from an accumulation of wealth to a system that enables drawdown of retirement savings over time to fund expenses. </li> <li> providing an automatic rollover of retirement savings into an income-stream instead of allowing a lump sum withdrawal on retirement </li> <li> expanding existing income products (that are starting to be offered by several financial institutions) which combine providing investment choice with a pension for life </li> <li> setting up a MyRetire product that would run parallel to <a href="https://treasury.gov.au/programs-and-initiatives-superannuation/mysuper">MySuper</a> and provide a simple and cost-effective retirement income system for less engaged members. MySuper only applies to the accumulation phase. Once a member starts an income stream in retirement, their MySuper account ceases </li> <li> improving access to financial planning advice which is shown to play a significant role in preparing Australians for retirement. </li> </ul> The government, superannuation industry and the community all have a greater role to play in improving the financial outcomes and experiences of retirees. With Australia’s ageing population, the need to better support retirees to achieve a dignified retirement is becoming more urgent. All Australians expect and deserve a financially secure retirement.<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/219217/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/marc-olynyk-1493791">Marc Olynyk</a>, Director of Financial Planning, Deakin Business School, <a href="https://theconversation.com/institutions/deakin-university-757">Deakin University</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/its-not-just-about-accumulating-super-australians-need-to-learn-how-to-spend-their-retirement-savings-219217">original article</a>.

Retirement Income

Unlocking the wealth in your home for a better retirement

In an era where the cost of living continues to rise, Australian retirees are facing unique financial challenges. Many find themselves in a situation where the bulk of their wealth is tied up in their family homes, leaving them with limited options to fund their retirement comfortably. That’s where <a href="https://householdcapital.com.au/" target="_blank" rel="noopener">Household Capital</a> steps in. As a specialist retirement funding provider, Household Capital offers a solution that empowers retirees to make the most of their home’s value. Through a helpful and enlightening Q&A session with Household Capital, we explore how their innovative approach allows retirees aged 60 and above to access their home wealth responsibly, providing flexible options such as regular income streams, lump sum payments, and even assistance for those still paying off mortgages! Whether you're looking to beat the cost-of-living crisis, help your children enter the property market, or simply secure a more comfortable retirement, Household Capital offers a pathway to a brighter financial future. Here’s how: <h3>Q: What does Household Capital do?</h3> A: Household Capital is a specialist retirement funding provider that provides responsible long-term access to your home wealth. Our approach aims to provide you with the best of both worlds – to continue living in your family home with the confidence to enjoy the retirement lifestyle you deserve. <h3>Q: How does Household Capital help retired Australians?</h3> A: If you’re like most Australian retirees, the majority of your wealth is probably tied up in your family home. This wealth is a valuable resource that could be used to improve your retirement funding and enhance your retirement lifestyle. Our Household Loan helps Australian homeowners aged 60 plus to unlock that wealth and put you in control of your retirement. Your home wealth can be drawn as a regular income, a lump sum payment to renovate your home, buy a new car or cover medical expenses, or both! Importantly, it provides flexibility and choice, so you can look to the future with confidence. <h3>Q: How can Household Capital help me beat the cost-of-living crisis?</h3> A: Many Australians are grappling with the rising cost of living. Food, medical costs, insurance premiums, petrol prices – it seems never ending. How do retired Australians manage this on a fixed income? In many cases, they don’t. Some give up doing things they love – other forgo necessities. Unlocking the wealth in your home can provide a regular income to supplement that received from your superannuation or government pension. You don’t have to go without. You can enjoy the lifestyle you deserve. <h3>Q: I’m over 60 and still paying a mortgage – can you help me?</h3> A: You may be one of the millions of Australians aged over 60 still paying off their home loan. Those principal and interest repayments can really stress budgets, especially as the interest rate for ‘old loans’ may be much higher than current rates for younger borrowers. For some over 60s, it means they can’t retire when they want to. For others, it’s having to find that monthly repayment from a fixed income that’s already been stretched by increasing rates and inflation. There is a better way. Many of our customers use a Household Loan to refinance their bank loan. Because a Household Loan does not require regular repayments, your retirement income is freed up. Notably, there is no risk of foreclosure if you miss repayments – because regular repayments are not required. You can stay in your home as long as you want with guaranteed lifetime occupancy and retain 100 percent ownership, meaning you benefit fully from any growth in your home’s value. <h3>Q: How can I help my kids get onto the property ladder?</h3> A: Did you know the ‘bank of mum and dad’ is consistently ranked among Australia’s top ten lenders? Typically, funds are drawn from retirement savings, which can have a detrimental impact on the ‘bank’ over the longer term. If your retirement funding needs are in hand, you can use your home wealth to contribute to a first home buyers deposit or help children with mortgage expenses. This enables you to help children and grandchildren when they need it most and use your home wealth to help the next generation build theirs. <h3>Q: How much home wealth could I unlock?</h3> A: The amount of home wealth you could unlock is dependent on the Loan to Value ratio (LVR). The calculation takes multiple factors into account including the age of the youngest borrower and the value of your property. The LVR for a Household Loan starts at 20 percent of the agreed property value for those aged 60 and increases one percent per year thereafter. To see how much home wealth you could unlock, check out Household Capital’s <a href="https://householdcapital.com.au/home-equity-calculators/" target="_blank" rel="noopener">online calculator</a> or call and speak to one of their Australian-based retirement specialists on 1300 734 720. Applications for credit are subject to eligibility and lending criteria. Fees and charges are payable, and terms and conditions apply (available upon request). Household Capital Pty Limited ACN 618 068 214, Australian Credit Licence 545906, is the Servicer for the credit provider Household Capital Services Pty Limited ACN 625 860 764 Image: Supplied. This is a sponsored article produced in partnership with Household Capital.

Retirement Income

Happy ending after company's awful retirement send-off

An elderly gentleman in the United States, who had faithfully served as an "extremely dependable" employee for 42 years, recently experienced a remarkable change in his fortunes, thanks in large part to the generosity of individuals from Australia. John Bartlett, the dedicated worker in question, had received <a href="https://www.oversixty.com.au/lifestyle/retirement-life/you-deserve-more-company-slammed-over-measly-send-off-party" target="_blank" rel="noopener">underwhelming recognition from an unnamed company</a> for his decades of commitment. His daily 40-minute commute on public transportation to a job paying only the minimum wage went largely unnoticed until recently, causing widespread consternation. Sonia, one of his colleagues, was deeply moved by the perceived injustice and decided to share a video clip of Bartlett's story online. In her post, she expressed her wish that his hard work had been better acknowledged and thanked him for his unwavering loyalty. She noted that Bartlett loved his job so much that he was reluctant to retire, receiving nothing more than a barbecue and a certificate as a token of appreciation. After sharing Bartlett's story on social media, Sonia was inundated with messages from people eager to contribute to his well-deserved retirement. Responding to this outpouring of support, she set up a <a href="https://www.gofundme.com/f/happy-retirement-john#xd_co_f=YjM1NWNiYzAtN2QwYS00MDc2LTgzZWEtNzRiYzE2ZjczZDU2~" target="_blank" rel="noopener">GoFundMe</a> campaign, inviting the public to contribute "a little something for a better retirement" for him. Within a matter of days, the fundraiser received an overwhelming response, with donations and messages pouring in from around the world, including numerous contributions from Australians. The campaign was eventually closed after more than 1,900 individuals contributed, resulting in a total of A$57,454 for Bartlett's retirement fund. In his 70s, Bartlett was left speechless when Sonia shared this incredible news with him. She conveyed the global impact of his story and the messages of support he had received from people across the globe. Overwhelmed by the gesture, Bartlett could only smile and nod in response. “They left messages for you," said Sonia in the video. "So I’m going to print it out and go ahead and make something nice for you so you can read it on your own time. We started the GoFundMe because they wanted to give you something for your retirement on their part and it just blew up overnight. You deserve it, OK? I’m going to make sure everything goes to your account, just for you.” Supporters encouraged Bartlett to use the funds for special treats, like a grand holiday or for spending time with loved ones. Messages from donors expressed their heartfelt wishes for his retirement and new beginnings. Sonia expressed her gratitude to the donors, assuring them that every cent raised would be placed directly into Bartlett's account. In her final update to the GoFundMe account, she thanked donors for their kindness and reaffirmed her commitment to ensuring Bartlett received every penny, attributing the success of the campaign to their collective efforts. In the end, the power of community and compassion won out, as people from all walks of life came together to make a meaningful difference in the life of an individual who had dedicated so much to his job. Images: TikTok

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