The biggest fear for any retiree, anywhere in the world, is running out of money. To prevent that from happening, retirees in Australia look for ways to keep their pension safe. Unfortunately, it has been reported that most Australians do not plan for their retirement sufficiently during their employment phase of life. The result is more people retiring on pensions which cannot sustain their lifestyles. Expenses must be cut, and often, that forces them to downgrade their lifestyles. Downgrading is not necessarily a bad thing, especially if it is done for reasons other than insufficiency of finances. To retire and keep prospering in old age in Australia, there are some measures that you can take.

Keep Working

A wealthy man was once asked when he would retire and his answer was that he would never. The man did not work for money; he worked because he enjoyed it. The genuine love he had for his occupation was enough motivation to keep working.

Retirement is not a pretty word; it has connotations of inability and old age. Due to advancements in healthcare and the quality of life, retirement at 65 years old is not what it used to be. 65-year old people today are in good physical and mental health. As such, they can continue working even after leaving their formal jobs. There are many benefits to continuing working, including keeping the mind occupied, continued provision of value and money.

Experience Counts

For a retiree, earning an income is important. That is because medical bills and other living expenses such as heating tend to rise with age. Financial freedom allows seniors to chase some of their old-age hobbies like travelling and enjoying unique life experiences such as playing golf at the most exclusive courses. While there is much advice available for seniors in business, a retired person would be wise to keep working in the same industry he worked in as an employee. That is because he or she can tap this wealth of experience and trade that as a consultant. People will pay for access to the years of experience that an older professional has. That is the reason why judges and professors often work beyond a typical retirement age. Australia allows employees to keep working past their retirement years and provides a work bonus for those that do stay at work.

Reduce Spending

The other way for seniors in Australia to manage finance is by cutting spending. Reduction in expenditure should be made in such a way that the quality of life is not affected. A good way of reducing expenses would be moving to a town where facilities such as hospitals are closer home. Moving to a smaller house is another way of reducing expenses because of the costs associated with living in a big house.

Expenses can also be reduced by taking advantage of breaks which are offered to senior citizens in Australia. For that to happen, the retiree must be informed of the existence of concessions. Some of the entitlements include reduced prices for medicine, lower water costs and travel discounts for pensioners.

Asking for Advice

Financial advisers are best positioned to know the current economic environment including laws, opportunities, and best practices for increasing personal or business wealth. Retirees should consult these people so that they can be advised on how to structure their savings, investments, and income for optimised tax payments. Individuals acting on their own behalf may save money in terms of fees, but will lose money by not understanding the system sufficiently. Financial advisers make it their life and career to optimise these opportunities on behalf of their clients.

 

By Jess Walter