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.
Paid Work
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.
State Pension
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.
Salary-related Pension
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.
Property
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.
State Benefits
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.
I couldn’t agree more with this statement: “having enough money to fund it all.” Retirement is not just about exciting activities and a time to fulfill every item on your bucket list. It is still part of adult life where you have responsibilities to fulfill and problems to face. This list is great to give people ideas how they can earn additional funds during retirement.
Also, ask yourself if you have enough money to fund a crisis if ever it happens to you. As mentioned in the article, we are now living longer. Because of that, we are prone to experience health and long term care problems. Though it may seem too far away, don’t forget to plan for your future Medicare supplement and long term care needs. Time flies fast, that is why it is never too early to think about it!
Thank you and more power!
It will be a tough situation if you run out of money during retirement. Boredom might also set in if you don’t have any daily activities that will keep you busy. Earning during retirement is a great idea to fuel your daily life. There can also fun ways to do it rather than going back to employment status. Some easy ways to make money post-retirement that I’ve read from FreeMedSuppQuotes are: tutoring students, rent vacant rooms in your house, selling some old stuff and investing.