Right now, it is possible to claim the aged pension when you turn 65. Of course, most people would also realise that major changes to the aged pension have been mooted by the federal government, and by 2023, the minimum age for aged pension collection will have increased to 67. The changes will be graduated over the next several years, but for many people approaching retirement age, this will have a significant impact on their lives and their financial plans.
Planning For Retirement
Former Prime Minister, Paul Keating, devised the superannuation scheme so that it would significantly reduce our dependence on the aged pension. Effectively a forced savings scheme, superannuation was designed as a method of relieving the pressure on the social security system. Of course, big changes in the cost of living in the last two decades have caused many people to question how effective superannuation savings will be once a person retires.
Indeed, many retirees have discovered that their super savings simply are not enough to live on long term due to cost of living rises, and the fact that people are living longer. But for those not fortunate enough to have significant super savings to draw upon, the aged pension seems the only choice left, despite the fact that cost of living pressures in our society means that the pension is simply not enough to live on comfortably. What then should people do to prepare for retirement? Here are some tips:
- Super boost: Some employers allow a person close to retirement to make what is called a salary sacrifice. This means that more of your income goes into your super fund, giving it a boost. This boost could really make a financial difference in retirement.
- Transition: Some people are in a position to switch to a part time basis in their last years on the job. While this won’t contribute financially, it will allow a person to get used to the idea of being retired and perhaps to develop some networks and interests outside of work so that when they retire the result is not as emotionally jarring.
- Work bonus: In Australia, it is possible to receive what is called a Work Bonus if you choose to continue working past official retirement age. For those who are eligible, this can mean additional income before they officially retire from the workforce.
- Financial planning: Seeing a qualified independent financial planner a few years before the age of retirement is a good idea. They will be able to advise you of your financial options and possible investments.
Life After Retirement and Aged Care Services, Sydney
For many people, life after retirement may be a frightening proposition. After many years of being actively involved in the workforce, the thought of entering retirement can cause a great deal of stress in many people. Even after a successful transition to retirement years, aged care services, Sydney based or otherwise, cause even greater trepidation.
As natural as these fears are, the truth is that aged care services are not what most people think they are. For example, we proudly offer both residential care and independent living that are of high quality. Rather than a fearful journey, we see the transition to aged care living as an exciting new discovery where people can come together, be part of a community that shares Christian values, and offers plenty of recreational activities.