A happy retirement is something many of us dream of. A time where we are not bound to work and are free to pursue all our passions without worry. There’s only one snag to this otherwise perfect idea – having enough money to fund it all. With people living longer than ever, it can be a daunting prospect to think about exactly how you are going to fund your golden years so that you can enjoy the lifestyle you have always dreamed of.
More than ever, people are looking at combining a range of income sources to make up a retirement that is fulfilling and satisfying. Here are a few methods of generating income after you have passed the state retirement age.
For some people, retirement is still a time in which they want to continue their working lives. And with the rapid advancements in health in the last few decades, people are finding themselves more physically able to continue working for longer. Many people drop down to part time work from their existing job, or even find they want to take up something new. In terms of recruitment, age is no longer the barrier it used to be.
Most people qualify for a state pension when they reach a certain age, and this usually proves to be a valuable source of income, if not a main source. There are options to defer your state pension if you are still working as a way of increasing the amount you receive later on in life. This is a guaranteed income source for the rest of your life.
Depending on how much you have earnt from a particular organisation and how long you have worked there, your salary-related pension is often your main source of income in retirement. With changes to the law constantly occuring, you may need to check if the Australian Government’s changes to contributions for superannuation affects you. Usually increasing over time and providing an income for any dependents, you can often take a 25% lump sum which will then lower your income over time. Before making any major decisions, it is worth consulting with a financial advisor.
Savings and Investments
You may have some savings accounts or investment schemes that have been designed for your retirement. Again, it is worth looking around for the best options if you are planning to keep the money in there for a long time as rates change over time.
Many people invest in property as a way of making their income in retirement, particularly if they don’t have a particularly large pension. A couple of rental properties can generate a steady income. Alternatively, you may be looking to downsize your own house as a way of unlocking some cash for yourself.
You may be entitled to other sorts of state benefits, though these are usually means tested. Make sure to do some enquiries if you think you are.