Are you ready to retire? What do you want from this next chapter of your life? Here are four questions to ask about retirement to prepare for your transition.
Retirement may be around the bend for you sooner. Are you prepared by knowing when, where, and how to retire? Let’s boil it down to 4 questions — these are the ones you should ask and answer yourself.
Where do I want to live out my retirement?
Perhaps you’ll want to live near family, friends, healthcare and medical facilities, community and activities, and consider rates, taxes — property and income, and the cost of living.
Do you want to retire in the city or country? Regional or rural? In the mountains or near the beach? If you can consider and tick off most of these locations, you have found the ideal place to retire. You’re probably already in there!
How will I pay for healthcare?
Right now, you may still be in great shape and physical condition. However, the one issue that pops up on most retirees is the high cost of healthcare. It might ruin your retirement if you are ill-prepared for it financially. Private health cover and Medicare only cover you for so much.
Among all health expenditure types, those aged over 65’s expenditure is around 4x higher than those under 65. For the oldest groups, it rises to between 6x to 9x higher.
You have to anticipate that your spending on healthcare at this point will quadruple when you’re 65. Also, expect it to increase every year after that.
An ASAG Equity Release can help you with your cash flow by unlocking some equity in your home to use for healthcare. You don’t even have to sell.
How active should I be physically and socially?
Most Australians are still working far later in life. In fact, 1 in 5 Australians aged over 70 are still working in one form or another. The benefits of this are not just financial — there’s also a positive social impact.
One of the big sources of stress is to notice the money stopped coming in. Having some income to help with the cash flow allows more flexibility in your retirement. Save for a holiday, eat out so often, have money for social gatherings, or even just being ready for an emergency will give you peace of mind.
To avoid the stress and keep you involved socially, work in some capacity. It will give you a sense of purpose, which you’ll most likely long for if you stop working at once. If you have enough savings, consider volunteering or helping out around the community.
How will I stop the retirement income leak?
To gain a better insight into this question — create a range of retirement scenarios that include income, expenses, housing, healthcare, aged care, social life, security, and taxes.
What do you want from your retirement? Have you thought about the worst case scenario? Consider these questions to prepare for this next chapter of your life.
If you trust your financial adviser or bank manager, consult with them. A Centrelink Financial Information Services officer can be of assistance with planning your finances in retirement.
If you liked our “4 Questions To Ask About Retirement” and took away some useful and valuable information, check our blog space regularly for more updates on reverse mortgages and equity releases.