The whole point of retirement is to be able to relax and enjoy time with your family without worrying about work, money, and those other stresses that can fill your earlier years. The key to a positive retirement lifestyle is all in the planning. Thorough organisation and a well thought-through savings plan will make all the difference when the time comes to leave work. When you are seeking a home loan your first instinct may be to take out a mortgage on the property. However, if you want additional money during your retirement with less immediate stress to pay back the funds then a reverse mortgage is an available alternative. This type of reverse loan will require you to remain living in your home for the duration of the loan agreement, Otherwise, your reverse mortgage lender will immediately call in the loan and the full remaining balance will be due. However, reverse loans have several advantages. You will retain ownership of the home, and you will not have to make monthly loan repayments. Additionally, the funds you receive from the loan process can be spent for any purpose you want. Follow these steps to be sure that you can enjoy the kind of retirement you deserve.
- Get good advice. Long before the time to retire arrives, you should be involved in careful financial planning. This can be difficult to achieve on your own, but there are experts available to help. Think Money Australia can help you to manage your debts, invest in property, and save for a fruitful and laid back retirement. They’ll make sure that all of your finances are in order ahead of time, so you’ll have nothing to worry about once the time comes to retire.
- Diversify your investments. It’s important not to rely on one investment avenue for all of your retirement savings. While this doesn’t always end in disaster, it can set you up for some major financial trouble in the future. Aim to diversify your investments and have a cushion of cash savings to fall back on should anything go wrong.
- Create a will. Your later years should be a time for enjoyment and fun, not for stressing over accounts and legal documents. Create a will well in advance with named beneficiaries, and utilise the skills of a wills and estates lawyer to ensure that the contract is legally sound. This may not be the most pleasant activity, but it has to be done at some point, and sooner is better than later.
- Clear your debts. Having major debts to your name can make saving for retirement far more difficult than it needs to be. Prioritise paying off your debts in your budget, and consult with a debt guidance advisor if you’re struggling to work out a strategic repayment plan. Once your debts are cleared, you’ll have the freedom to save for the future.
- Boost your super. If you’re concerned that you may not have enough saved up to live comfortably through your retirement, consider adding extra to your super while you’re still working. Your employer may be able to take extra contributions from your salary and add it into your super. While this will lead to a short-term loss in terms of your monthly salary, it could be worth it in the long run. If you’re on a low income you may also qualify for government contributions to your salary, so be aware of your rights.
- Be emotionally prepared for retirement. Some people find it difficult to transition from their ‘normal’ working life into retirement. Consider the lifestyle changes that you can expect and prepare ahead of time so that you don’t experience a shock during the transition. You may find gradually lowering your working hours in the years leading up to retirement to be a helpful way to gradually ease into your new lifestyle, while others gain comfort by planning special holidays and events for the future.
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