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The biggest faux pas for self-funded retirees

Whether you have been retired for some time or are still looking forward to the time you can step back, chances are there are important considerations you may have overlooked. From planning and pensions to family and housing, these are the biggest self-funded retirement mistakes I come across, and some insights into how to avoid repeating them: <ol> <li>Lack of a plan</li> </ol> Not having a retirement plan is perhaps the most basic faux pas, but often the most costly. A detailed plan should cover things like: <ul> <li>When you AND your partner will retire </li> <li>Where you will live (you may want to downsize, relocate, seek assisted living)</li> <li>Anticipated living costs (living situation, health, lifestyle)</li> <li>How you will spend your time (hobbies, travel, volunteering, time with family)</li> <li>Strategies to maximise investments and superannuation</li> <li>Tax minimisation strategies</li> </ul> Remember: failing to plan = planning to fail. <ol start="2"> <li>Poor planning</li> </ol> Having a plan is the starting point, but it won’t get you far if it’s incomplete, not updated as circumstances change, or omits critical factors. For couples, not considering age differences is a big mistake. One partner retiring before the other can have big shifts on financial and tax dynamics and even the relationship itself. Then there is end-of-life care, particularly if the younger partner is still working. Not building in a safety buffer is another no-no. Too many retirees have been caught out by the high inflation of recent years, having calculated their anticipated income needs on much lower living costs. Balance short-term and long-term goals: being overly conservative early on can limit your financial situation down the track. And no plan is complete without contingencies for worst case scenarios – insurances, protections, back-up options. <ol start="3"> <li>Insecure housing </li> </ol> Government data has long shown major differences in quality of life for retirees who own their home versus those who don’t. Homelessness or insecure housing, the mercy of the rental market, and inability to customise your home as you age or if you need specialised support with disability or health issues are some of the challenges renters face. Furthermore, public estimates of how much the average Australian needs to retire typically assume home ownership – meaning rent is not part of that calculation. That’s a huge living cost you may not have factored into your retirement planning. <ol start="4"> <li>Unclaimed pensions</li> </ol> Contrary to popular belief, self-funded retirement and claiming a pension are not mutually exclusive. You may be eligible for a part-pension, calculated pro-rata according to the value of your assets and other income. Claiming a part-pension, no matter how small it may be, reduces how much income you need to draw down from super – making it last longer. Don’t fall into another common trap when applying – overestimating your assets. It’s easy to assume your non-monetary assets are worth more than what they really are, reducing how much pension you receive or negating your eligibility altogether. <ol start="5"> <li>Depleted Bank of Mum and Dad</li> </ol> With home ownership increasingly out of reach for younger adults, the Bank of Mum and Dad is often sought to bridge the gap. How you do so will impact your own situation. Giving more than you can afford can leave you overstretched. Missed loan repayments could see you fall behind on your own bills. Not putting agreements in writing can lead to disputes down the track. Having a loan guarantee called in could see you homeless. Be wise about decisions you make here and don’t let heartstrings cloud your judgement. <ol start="6"> <li>Suffering in silence</li> </ol> Elder abuse is a sad but significant problem. Given they have money in the bank, self-funded retirees are often the most vulnerable. Its effects can be far-reaching, impacting your mental and physical health, financial wellbeing, social interactions, and quality of life. Be aware of <a href="https://www.oversixty.com.au/finance/retirement-income/are-you-a-victim-of-elder-abuse-without-even-realising-it">the signs that something isn’t right</a>. If you recognise it happening to you – or someone you know – speak up and seek help. <ol start="7"> <li>Forgoing professional advice</li> </ol> How much of the above details did you already know? Chances are, not all of them. And that’s just the tip of the iceberg. Money is a complicated business and you simply don’t know what you don’t know, which is why seeking independent, tailored advice from a professional is so important. A good financial advisor can help you identify new opportunities and manage risks you may not have considered, limit expenses and also work with your accountant to minimise your tax. Helen Baker is a licensed Australian financial adviser and author of On Your Own Two Feet: The Essential Guide to Financial Independence for all Women. Helen is among the 1% of financial planners who hold a master’s degree in the field. Proceeds from book sales are donated to charities supporting disadvantaged women and children. Find out more at <a href="http://www.onyourowntwofeet.com.au/">www.onyourowntwofeet.com.au</a> Disclaimer: The information in this article is of a general nature only and does not constitute personal financial or product advice. Any opinions or views expressed are those of the authors and do not represent those of people, institutions or organisations the owner may be associated with in a professional or personal capacity unless explicitly stated. Helen Baker is an authorised representative of BPW Partners Pty Ltd AFSL 548754. Image credits: Shutterstock

Retirement Income

Downsizing cost trap awaits retirees – five reasons to be wary

<a href="https://theconversation.com/profiles/erika-altmann-361218">Erika Altmann</a>, <a href="https://theconversation.com/institutions/university-of-tasmania-888">University of Tasmania</a> It’s time to debunk the myth of zero housing costs in retirement if we want to understand why retirees resist downsizing. Retirees have at least five reasons to be wary of the costs of downsizing. Retirees living in middle-ring suburbs face frequent calls to downsize into apartments to free up larger allotments in these suburbs for redevelopment. Retirees who fail to downsize into smaller units and apartments are viewed as being a greedy, baby-boomer elite, stealing financial security from younger generations. It also makes sense to policymakers for retirees to move into less spacious accommodation and make way for high-density housing. Housing think-tank AHURI <a href="http://www.ahuri.edu.au/__data/assets/pdf_file/0021/14079/AHURI_Final_Report_No_286_Australian-demographic-trends-and-implications-for-housing-assistance-programs.pdf">fosters this view</a>. Yet seniors remain resistant to moving, in part because of the ongoing costs they would face. The concept of zero housing costs in retirement is based on a 1940s view of a well-maintained, single dwelling on a single allotment of land where the mortgage has been paid off. This concept is incompatible with medium- and high-density housing and refusing to acknowledge ongoing housing costs may cause significant poverty for retirees. <h2>Reason 1 – upfront moving costs are high</h2> When a house is sold the owner receives the sale funds minus the real estate and legal fees. When the same person then buys a different property to live in, they pay legal fees plus stamp duty. For cities such as Melbourne and Sydney, these costs are likely to exceed A$70,000. These high transfer costs may mean it is not cost-effective <a href="https://theconversation.com/why-older-australians-dont-downsize-and-the-limits-to-what-the-government-can-do-about-it-76931">for the person to move</a>. <h2>Reason 2 – levies are high</h2> Because apartment owners pay body corporate levies, people often assume this is just the same as periodic payment of rates, water, insurance and other costs. It is not. Fees remissions for low-income retirees for rates, power, insurance and water are difficult to apply within a body corporate environment. As a consequence, these are usually not applied to owners of apartments. The costs of maintaining essential services, such as mandatory fire-alarm testing, yearly engineering certification, lift and air-conditioning inspections, significantly increase ownership costs. When additional services are supplied, such as swimming pools, gyms and rooftop gardens, these also require periodic inspections. Garbage collection, cleaning, gardening, concierge and strata management services also <a href="https://eprints.utas.edu.au/cgi/users/home?screen=EPrint%3A%3AView&eprintid=23322">must be paid</a>. Owners of standard suburban homes choose whether they want these services, with those on fixed incomes going without them. Annual levies for apartment buildings vary, but expect to pay between $10,000 and $15,000. They <a href="https://www.strata.community/understandingstrata/faqs">may be more than this</a>. <h2>Reason 3 – costs of maintenance</h2> <figure class="align-right "><figcaption></figcaption></figure> Apartments are often sold as a maintenance-free solution for older people. The maintenance is not free. It needs to be paid for. Maintenance costs are higher in an apartment than a standard suburban home because there are more items and services to be maintained and fixed. Lifts and air conditioning need periodic servicing and fixing. This is in addition to the mandatory inspections listed above. <h2>Reason 4 – loss of financial security</h2> It is a mistaken belief that the maintenance costs that form part of the body corporate fee include periodic property upgrades. This relates to items that are owned collectively with other apartment owners. Major servicing at the ten-year mark and usually each five-to-seven years after that include painting, floor-covering replacement, and lift and air-conditioning repair or replacement. Major upgrades may also include garden redesign or other external building enhancement including <a href="https://eprints.utas.edu.au/cgi/users/home?screen=EPrint%3A%3AView&eprintid=23315">environmental upgrades</a>. All owners share these upgrade costs. Costs of upgrading the inside of an apartment (a bathroom disability upgrade, for example) are additional again. Once the body corporate committee members pledge funds towards an upgrade, all owners are required to raise their share of the funds, whether they can afford it or not. Communal choice outweighs an individual owner’s need to delay upgrade costs. Owners who buy apartments that are part of a body corporate effectively lose control of their future financial decisions. <h2>Reason 5 – loss of security of tenure</h2> Loss of security of tenure is usually associated with renters. However, the recent introduction of <a href="http://www.lpi.nsw.gov.au/__data/assets/pdf_file/0009/25965/Termination_of_a_strata_scheme_by_RG.pdf">termination legislation</a> in New South Wales gives other owners the right to vote to terminate a strata title scheme. When this occurs, all owners, including reluctant owners of apartments within that scheme, are compelled to sell. There are valid reasons why termination legislation is desirable, as many older apartment complexes are reaching the end of their useful life. Even so, as termination legislation is rolled out across the states, owner- occupiers effectively lose control of how long they will own a property for. They no longer have security of tenure, which means retirees may face an uncertain housing future in their old age. <h2>Downsizing raises poverty risks</h2> Because current data sets do not adequately take account of ongoing costs associated with apartment living, the effect of downsizing on individual households is masked. Downsizing retirees into the apartment sector creates ongoing financial stress for older people. Creating <a href="https://theconversation.com/it-will-take-more-than-piecemeal-reforms-to-convince-older-australians-to-downsize-51043">tax incentives to move</a> does not tackle these ongoing costs. Centrelink payments for of <a href="https://www.humanservices.gov.au/customer/services/centrelink/age-pension">$404 per week</a> are well below <a href="http://acoss.wpengine.com/poverty-2/">the poverty line</a>. Yet we expect retirees to willingly downsize and to be able to cede most of their Centrelink payments to cover high body corporate costs. Requiring retirees to downsize for the greater urban good will shift poverty onto retirees who could barely manage in their previously owned standard suburban home. Failing to understand the effect of high ongoing costs associated with apartment living and reinforcing the myth of zero housing costs in retirement will continue to lead to poor policy outcomes.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/80895/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/erika-altmann-361218">Erika Altmann</a>, Property and Housing Management Researcher, <a href="https://theconversation.com/institutions/university-of-tasmania-888">University of Tasmania</a> Image credits: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/downsizing-cost-trap-awaits-retirees-five-reasons-to-be-wary-80895">original article</a>.

Retirement Income

How to spend time wisely – what young people can learn from retirees

<a href="https://theconversation.com/profiles/boroka-bo-1371004">Boróka Bó</a>, <a href="https://theconversation.com/institutions/university-of-essex-1291">University of Essex</a> For many young people, retirement is a blip on the radar, if not a total unknown. This is particularly true during our cost of living crisis, when investing and contributing more to your pension might fall down the priority list behind paying rent. Despite this, more and more young people are starting to think about retirement in <a href="https://www.forbes.com/advisor/retirement/the-forbes-guide-to-fire/">earlier ages</a>, with many focusing on their future quality of life and financial independence after they leave work. This can sometimes come at the expense of their wellbeing while they are still working, spending extremely frugally and focusing on the “hustle”, instead of enjoying the freedom and good times that could also characterise young adulthood. For my <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8681690/">new research</a>, I interviewed over 200 people and surveyed hundreds more to understand how they balance time and money. I focused on people going through major life transitions: recent retirees and new parents, and people preparing for those moments. While we expect retirees to have all the time in the world, I found that in reality, retirees are often pressed for time. Over a quarter of them feel <a href="https://link.springer.com/content/pdf/10.1007/s11205-015-1029-z.pdf">time poor</a>, with not enough hours left in the day for all they need to do. This is regardless of the amount of money they have. Although wealthy retirees generally have more control over their schedules, both rich and poor retirees are impacted by time poverty in older ages. It’s never too late (or too early) to start making the most of your time and living a better life. Here are some important lessons learned from my retirees’ journeys. <h2>Don’t chase money, let money chase you</h2> One of the biggest regrets among my <a href="https://betterdwelling.com/city/toronto/heres-torontos-richest-and-poorest-neighbourhoods-interactive/">less privileged</a> research participants was their inability to get as much education as they wanted when younger. Some left university or college early to support their families, or because they could not afford to continue. But all regretted not getting as much education as they needed to be competitive in the labour force later on. To make enough money, pick something and follow through: whether university or skilled technical trades, get good at something. Then, the money will follow. <h2>Worry about how you feel – not how you look</h2> When youth wanes, you are left with how you feel. In retirement, will you be in pain thanks to spending your life in hard labour or nonstop work? My interviewees made clear that when you prioritise making money over health – whether by necessity or by choice – you pay for this by having to give up your precious time in retirement. Some of my new retirees’ health recovery efforts included spending extra time with medical providers, and spending money and time on commuting to appointments. Women were doubly disadvantaged here as, unlike men, they continued to face societal pressures to look younger than their age. To avoid having to <a href="https://academic.oup.com/gerontologist/article/57/5/910/2632069?login=false">spend extra</a> time and money on health recovery in later life, focus on health preservation in earlier life. Sometimes you may need to to prioritise your own wellbeing above the needs of your employer, for example by taking time off for your physical or mental health. While this is a luxury currently not afforded to all, movements like “quiet quitting” are beginning to start a public conversation on this topic. <h2>Make your time count by sharing it with others</h2> We can “buy” time by exchanging money for tasks we do not wish to do. Consuming items can also have <a href="https://www.jstor.org/stable/pdf/24737120.pdf?addFooter=false">time costs</a>, as both shopping and learning to use new items takes time. Thanks to my retirees, I now also know that we can get more out of time when we share it with others. Time is what social scientists would call a “<a href="https://sociologicalscience.com/time-network-good/">network good</a>”. In other words, how we value time depends on the number of other people we can share our time with. All of my retired participants spoke of the need to build strong, healthy relationships while younger, to have friends we can share life with when older. Shared time leads to <a href="https://sociologicalscience.com/time-network-good/">greater emotional wellbeing</a> and happiness. <h2>Identify your passions early</h2> While nearly all of my retirees spent a considerable amount of time financially planning for retirement, almost as many regretted not planning ahead when it comes to cultivating hobbies and interests. This was particularly pressing for my wealthy retirees, as they faced a drop in their social status and loss of work friends when they retired. Starting new hobbies and interests once retired – out of necessity – can feel like extra work. Pursuing passions is <a href="https://www.tandfonline.com/doi/abs/10.1080/07053436.1995.10715491?casa_token=Puyxz2akU2oAAAAA:Gl6qIREhdxqfcm5fo0cJ6_5DLLjTCuEVPF7Da2JDyxVHNwbeq6N-9Hbc0nMLiKn-cO1fZfd8cKRi">necessary for wellbeing</a>, but this should be done before retirement, while it is purely for fun. <h2>Time is love</h2> Repeatedly, my interview participants gently reminded me that giving your time to another person is the biggest act of kindness we can do. This is because once you give your time away, you can never get it back. Be mindful of this as you give your time, to your friends, employers, acquaintances or to social media companies. Thanks to my participants, I now often ask myself: Does this company or organisation love me? Generally, the answer is no, at which point I also know they do not deserve much of my time. At the same time, when a friend, trusted mentor, teacher or stranger donates their precious time to me, I am aware that my appreciation and kindness can only ever partially repay them. My retired participants show that it is important to remain grateful for the time we share with each other while on this Earth. When the daily grind gets you down, remind yourself that time is love.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/189340/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/boroka-bo-1371004">Boróka Bó</a>, Assistant professor in sociology, <a href="https://theconversation.com/institutions/university-of-essex-1291">University of Essex</a> Image credits: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/how-to-spend-time-wisely-what-young-people-can-learn-from-retirees-189340">original article</a>.

Money & Banking

7 hacks for retirees to make your money last longer

As Australians continue to live longer, the squeeze is on to make each dollar last longer – and never moreso than in retirement. <a href="https://www.aihw.gov.au/reports/life-expectancy-deaths/deaths-in-australia/contents/life-expectancy">Life expectancies in Australia</a> are now 85.4 years for women and 81.3 years for men. Meanwhile, the <a href="https://www.abs.gov.au/statistics/labour/employment-and-unemployment/retirement-and-retirement-intentions-australia/latest-release">average age at retirement</a> for all retirees is 56.3 years. That’s up to 29.1 years of retirement to be paid for without a salaried income. Thankfully, making money last longer is just possible, with the help of a few tips and tricks. <ol> <li>Embrace seniors’ discounts</li> </ol> It was once said that “it’s better to pay full price than to admit you’re a senior citizen”. Really? Who wouldn’t prefer the extra cash! Being “senior” opens the door to numerous discounts and freebies. If you haven’t already, apply for your eligible concession cards, including the <a href="https://www.servicesaustralia.gov.au/commonwealth-seniors-health-card">Commonwealth Seniors Health Card</a> (for discounted healthcare and prescriptions) and state or territory seniors card (for discounted/free vehicle registration, public transport and other services). Additionally, many businesses offer seniors discounts – insurers, retailers, attractions and more. But they may not advertise these discounts widely, so it pays to ask. <ol start="2"> <li>Maintain a plan</li> </ol> Having a plan and keeping it up to date ensures you don’t overdraw from super, losing the income-generating power of those funds and running out prematurely. I prefer a ‘savings and investment plan’, which sounds nicer and is more comprehensive than a ‘budget’. Incorporate your goals, expenses, assets, and incomes – visibility keeps you disciplined and allows you to act quickly if something is amiss. <ol start="3"> <li>Spend points</li> </ol> Many retirees have held their current credit card, store cards and frequent flyer account for years – decades even. How many points are sitting there unused? These points generally aren’t transferable, so can’t be gifted in your will. It’s use them or lose them! Points can pay for everything from groceries to homewares, travel and even your Christmas shopping – conserving your cash and super. <ol start="4"> <li>Get comfortable</li> </ol> Rightsizing your home sooner rather than later has numerous benefits, such as: <ul> <li><a href="https://www.ato.gov.au/Individuals/Super/Growing-and-keeping-track-of-your-super/How-to-save-more-in-your-super/Downsizer-super-contributions/">downsizer super contributions tax breaks</a> to boost superannuation earnings.</li> <li>paying less for your new home, since property prices generally track upwards whilst investing the extra equity.</li> <li>avoiding complications of moving later in life when your health or mobility may not be as good.</li> <li>avoiding a mistake - using the time to find exactly what you want, where you want, rather than being under pressure and having to spend stamp duty again</li> </ul> Home ownership is also a major determinant of how comfortable your retirement will be. And given the current state of Australia’s rental market, selling your home to move into rented accommodation could prove costly. <ol start="5"> <li>Retain protections</li> </ol> Protections are typically a cost – insurance premiums, legal fees, memberships etc. However, the cost of not having them in place can be far higher. Plus, in the case of insurances, prices and restrictions increase with age – meaning you pay more but get less value for that spend, compared with the more favourable terms of a long-held policy. By all means adjust your protections to suit your current and future needs. But think twice before trying to save a few dollars by discarding insurances or cancelling sports and social memberships that keep you active. <ol start="6"> <li>Update estate planning</li> </ol> Considerable costs (and heartache) inevitably hit a grieving partner and family where someone dies without having their affairs properly in order: <ul> <li>funeral costs and medical bills pile up if funds haven’t been allocated for them.</li> <li>delayed payouts from insurances and super if those details aren’t readily available. </li> <li>loss of economies of scale (living costs per person are cheaper for couples than singles). </li> <li>unexpected taxes, debts, and liabilities.</li> <li>legal conflicts arise where wills are unclear or outdated.</li> <li>a person’s wishes may go overlooked or be challenged where guardianships and power of attorney were not devised.</li> </ul> In extreme cases, the surviving spouse may be forced to sell their home to pay associated costs or because they can’t afford to maintain it alone. <ol start="7"> <li>Seek good advice</li> </ol> Just like a good doctor helps you stay physically and mentally healthy, a good financial adviser helps your finances stay healthy, tactically smart and use strategies to reduce tax which stretches your money further. Be sure their accreditation is up-to-date, and they have experience working with retirees (not just those planning for it during their working years). Often, the cost of this advice pales in comparison to the tax saved and additional income earned through benefits, structures and plans you never even knew about. What’s not to love about that! Helen Baker is a licensed Australian financial adviser and author of the new book, On Your Own Two Feet: The Essential Guide to Financial Independence for all Women (Ventura Press, $32.99). Helen is among the 1% of financial planners who hold a master’s degree in the field. Proceeds from book sales are donated to charities supporting disadvantaged women and children. Find out more at <a href="http://www.onyourowntwofeet.com.au">www.onyourowntwofeet.com.au</a> Image credits: Getty Images

Retirement Income

Essential money conversations retirees should have with family

Discussions about funding retirement, aged care and inheritances may be uncomfortable. However, not having them risks your wishes going unmet and family conflicts where details aren’t clear. Hence having discussions about money while you are able to is one of the best (and cheapest!) investments you can make – for both you and your family. Precisely what those discussions entail will depend on your circumstances – and theirs. Yet many points apply almost universally: What matters to you Even the best laid plans mean nothing if those responsible for enacting them don’t know what they are or understand your reasoning behind them. Your will provides a legal overview of who gets what upon your death, while nominated beneficiaries determine how assets are divided from superannuation and some other structures. A separate letter of wishes can informally share your wishes, covering more than just legalities. Sharing this before your death allows family to clarify your wishes and ask questions. Go through: <ul> <li>How your money should be managed now and longer term (e.g., you may want money set aside for grandchildren’s education, or have instructions for a dependent’s ongoing care).</li> <li>Funeral arrangements; cremation or burial; where you will be laid to rest.</li> <li>Plans for anyone other than direct family, charities etc.</li> <li>Any non-negotiables among your wishes.</li> </ul> Partner protections Ensure your partner knows how they will be looked after if they outlive you. Similarly, your kids should know what if any support they will need to provide – especially important for blended families. Where beneficiaries have divorced/separated, will you exclude their ex from your estate? Are your records updated to reflect this? Ensure everyone knows the difference between joint tenants and tenants in common for property owners – only one automatically leaves your share of the property to your co-owner. Health matters How do you want to be looked after in your final years? Don’t assume your loved ones already know everything. Communicate your wishes, small and large – medications, dietary requirements, retirement living, palliative care, resuscitation. Discuss whether power of attorney and enduring guardianship are needed should you be unable to make decisions over your health and finances (e.g., due to dementia or stroke), and who will assume those responsibilities. Family legacy Consider the legacy you want to leave and whether this aligns with your family’s expectations. Is dividing assets equally among your children really fair if one is well-off while another struggles or has complex needs? Do your plans on inheritance unwittingly create headaches for the recipients – such as leaving property to someone who cannot afford to maintain it, or tax liabilities that eat into any financial gain? Discuss non-financial legacy too: do your offspring know about your (and hence their) heritage? Are there special family mementos/stories to pass on? This knowledge may be lost if you don’t share it now. Place to call home Given their financial, logistical, and emotional implications, living arrangements are crucial to discuss before things need to change (and change can be imposed suddenly, such as by a health emergency). Consider: <ul> <li>Where would you want to go if you need high-level care?</li> <li>Is your current home suitable in your advanced years? How would any required modifications be paid for?</li> <li>Would you move nearer your kids? Downsize, upsize or sea/treechange?</li> <li>If you move, would you need to sell your current home? Could it be retained somehow?</li> <li>Do you want/expect kids to care for you? Are they capable of doing so? </li> <li>Could/would you live with one of your children? If so – such as paying to build a granny flat on their property – how does this affect your will? Would they be forced to sell so their siblings receive their inheritance?</li> </ul> Team united Having everyone on the same page helps things to run smoothly – especially during difficult times such as a death or serious illness in the family. Stay aligned by: <ul> <li>Introducing adult children to your financial adviser, lawyer, and accountant.</li> <li>Ensuring everyone knows where to find your will and who is your executor.</li> <li>Disclosing what is and is not up to date.</li> <li>Providing contingency access to passwords, important documents, keys etc.</li> <li>Sharing relevant policy details (e.g., life insurance).</li> </ul> These discussions may be sensitive and difficult to initiate, but are crucial to ensure your wishes are known and enacted. Plus, they may encourage your loved ones to think about their own wishes – and give you all peace of mind for the future! Helen Baker is a licensed Australian financial adviser and author of the new book, On Your Own Two Feet: The Essential Guide to Financial Independence for all Women (Ventura Press, $32.99). Helen is among the 1% of financial planners who hold a master’s degree in the field. Proceeds from book sales are donated to charities supporting disadvantaged women and children. Find out more at <a href="http://www.onyourowntwofeet.com.au">www.onyourowntwofeet.com.au</a> Image credits: Getty Images

Retirement Income

Three common issues for retirees to watch out for

It can be hard to know what’s next around the bend of the road of life on a good day, and when it comes to retirement, uncertainty can rear its head faster than you can blink. Thankfully, there’s plenty of time to brace yourself, and prepare for what might be waiting. Understanding the most common problems people face is half the battle, and with these three quick explainers, you can take your new intel into your next planning session, and give yourself the head start of a lifetime. <ol> <li dir="ltr" aria-level="1"> New horizons </li> </ol> Change is hard, and the change of pace that comes with retirement can be a challenge to navigate. Many dream of holidaying during this time, buying that caravan they’ve talked about for years, doing those renovations to make home more comfortable or accessible, and spending more quality time with - as well as spoiling - loved ones. According to Senior Wealth Manager Clint McCalla, who spoke to Forbes, one of the biggest problems people face is not saving enough money to maintain the retirement lifestyle they’ve always dreamed of. Put simply, they “can’t afford to do the things they want to do.” “The other problem is boredom or a loss of purpose,” McCalla continued. “Also [we] see relationship issues emerge between significant others as you are now potentially spending more time together, which is an adjustment. “For anyone going through this transition, you need to be realistic about how quickly you adapt to a new lifestyle. It isn’t going to happen overnight. Take time to figure it out, and don’t pressure yourself to meet the expectations you had going into retirement.” <ol start="2"> <li dir="ltr" aria-level="1"> Money </li> </ol> Cash gets a mention in almost every discussion surrounding retirement, and this one is no different. Keeping your finances in order will not only give you peace of mind, but starting early will give you more opportunities moving forward, as you won’t be as limited when it comes to following your dreams. “The two cornerstone questions faced by those anticipating retirement are ‘am I going to be okay?’ and ‘can I afford to financially support the lifestyle I have worked all my life toward?’” Retirement Navigator’s Doug Dahmer explained. “People usually just don’t have enough to retire,” Bob Chitrathorn added, “they simply retire and will try to make do with what they have, without knowing how long the amount of money they have may or may not last.” And as Investment Adviser Derek Miser put it, “many people rely on their pension income to survive, and if this income is reduced due to higher retirement age, it can cause financial hardship. Health issues often become more prevalent in older age, and these may only be compounded by working longer.” <ol start="3"> <li dir="ltr" aria-level="1"> Thumb twiddling </li> </ol> Without a clear sense of purpose, many people spiral down the path of boredom. While having some disposable income to enjoy yourself can help, it doesn’t guarantee that you won’t one day find yourself sitting around and wondering what you want to do. So, it’s crucial to know what it is that makes you happy, what inspires you, and how to ensure you can keep on coming back to it - hobbies are a great example, whether they’re with others and something you can keep busy with on your own terms. “People need to contribute and have purpose in life,” explained Anna Rappaport, “if their main purpose was their job, they need to find a new passion and/or purpose.” “One of the main problems people face when they retire is a lack of purpose and meaning in their lives,” agreed Dennis Shirshikov. “Many retirees struggle with feelings of boredom, loneliness, and isolation, which can lead to depression and other mental health issues.” Images: Getty

Retirement Life

How to spend time wisely – what young people can learn from retirees

For many young people, retirement is a blip on the radar, if not a total unknown. This is particularly true during our cost of living crisis, when investing and contributing more to your pension might fall down the priority list behind paying rent. Despite this, more and more young people are starting to think about retirement in <a href="https://www.forbes.com/advisor/retirement/the-forbes-guide-to-fire/" target="_blank" rel="noopener">earlier ages</a>, with many focusing on their future quality of life and financial independence after they leave work. This can sometimes come at the expense of their wellbeing while they are still working, spending extremely frugally and focusing on the “hustle”, instead of enjoying the freedom and good times that could also characterise young adulthood. For my <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8681690/" target="_blank" rel="noopener">new research</a>, I interviewed over 200 people and surveyed hundreds more to understand how they balance time and money. I focused on people going through major life transitions: recent retirees and new parents, and people preparing for those moments. While we expect retirees to have all the time in the world, I found that in reality, retirees are often pressed for time. Over a quarter of them feel <a href="https://link.springer.com/content/pdf/10.1007/s11205-015-1029-z.pdf" target="_blank" rel="noopener">time poor</a>, with not enough hours left in the day for all they need to do. This is regardless of the amount of money they have. Although wealthy retirees generally have more control over their schedules, both rich and poor retirees are impacted by time poverty in older ages. It’s never too late (or too early) to start making the most of your time and living a better life. Here are some important lessons learned from my retirees’ journeys. <h2>Don’t chase money, let money chase you</h2> One of the biggest regrets among my <a href="https://betterdwelling.com/city/toronto/heres-torontos-richest-and-poorest-neighbourhoods-interactive/" target="_blank" rel="noopener">less privileged</a> research participants was their inability to get as much education as they wanted when younger. Some left university or college early to support their families, or because they could not afford to continue. But all regretted not getting as much education as they needed to be competitive in the labour force later on. To make enough money, pick something and follow through: whether university or skilled technical trades, get good at something. Then, the money will follow. <h2>Worry about how you feel – not how you look</h2> When youth wanes, you are left with how you feel. In retirement, will you be in pain thanks to spending your life in hard labour or nonstop work? My interviewees made clear that when you prioritise making money over health – whether by necessity or by choice – you pay for this by having to give up your precious time in retirement. Some of my new retirees’ health recovery efforts included spending extra time with medical providers, and spending money and time on commuting to appointments. Women were doubly disadvantaged here as, unlike men, they continued to face societal pressures to look younger than their age. To avoid having to <a href="https://academic.oup.com/gerontologist/article/57/5/910/2632069?login=false" target="_blank" rel="noopener">spend extra</a> time and money on health recovery in later life, focus on health preservation in earlier life. Sometimes you may need to to prioritise your own wellbeing above the needs of your employer, for example by taking time off for your physical or mental health. While this is a luxury currently not afforded to all, movements like “quiet quitting” are beginning to start a public conversation on this topic. <h2>Make your time count by sharing it with others</h2> We can “buy” time by exchanging money for tasks we do not wish to do. Consuming items can also have <a href="https://www.jstor.org/stable/pdf/24737120.pdf?addFooter=false" target="_blank" rel="noopener">time costs</a>, as both shopping and learning to use new items takes time. Thanks to my retirees, I now also know that we can get more out of time when we share it with others. Time is what social scientists would call a “<a href="https://sociologicalscience.com/time-network-good/" target="_blank" rel="noopener">network good</a>”. In other words, how we value time depends on the number of other people we can share our time with. All of my retired participants spoke of the need to build strong, healthy relationships while younger, to have friends we can share life with when older. Shared time leads to <a href="https://sociologicalscience.com/time-network-good/" target="_blank" rel="noopener">greater emotional wellbeing</a> and happiness. <h2>Identify your passions early</h2> While nearly all of my retirees spent a considerable amount of time financially planning for retirement, almost as many regretted not planning ahead when it comes to cultivating hobbies and interests. This was particularly pressing for my wealthy retirees, as they faced a drop in their social status and loss of work friends when they retired. Starting new hobbies and interests once retired – out of necessity – can feel like extra work. Pursuing passions is <a href="https://www.tandfonline.com/doi/abs/10.1080/07053436.1995.10715491?casa_token=Puyxz2akU2oAAAAA:Gl6qIREhdxqfcm5fo0cJ6_5DLLjTCuEVPF7Da2JDyxVHNwbeq6N-9Hbc0nMLiKn-cO1fZfd8cKRi" target="_blank" rel="noopener">necessary for wellbeing</a>, but this should be done before retirement, while it is purely for fun. <h2>Time is love</h2> Repeatedly, my interview participants gently reminded me that giving your time to another person is the biggest act of kindness we can do. This is because once you give your time away, you can never get it back. Be mindful of this as you give your time, to your friends, employers, acquaintances or to social media companies. Thanks to my participants, I now often ask myself: Does this company or organisation love me? Generally, the answer is no, at which point I also know they do not deserve much of my time. At the same time, when a friend, trusted mentor, teacher or stranger donates their precious time to me, I am aware that my appreciation and kindness can only ever partially repay them. My retired participants show that it is important to remain grateful for the time we share with each other while on this Earth. When the daily grind gets you down, remind yourself that time is love. This article originally appeared on <a href="https://theconversation.com/how-to-spend-time-wisely-what-young-people-can-learn-from-retirees-189340" target="_blank" rel="noopener">The Conversation</a>. Image: Shutterstock

Relationships

Retiree figures out how to win the lotto

A retired couple have beaten possibly all odds when it comes to winning the lottery thanks to “simple math”. Jerry and Marge Selbee from Evart, Michigan, are multimillionaires because of a loophole in the gambling game. After retiring in 2003, Jerry decided to follow the lotto closely and discovered that it's easier than he thought to win, saying, “Anyone could have done it.” The retiree inspected the game called WinFall and found that if no one won the jackpot of US$5 million ($7 million AUD), then the money would go to ticket holders with fewer winning numbers. "I looked at the probabilities of the game and it said that when the WinFall actually occurred and no one won the jackpot, that the prize level would go up by a factor of 10," Jerry said on <a href="https://9now.nine.com.au/60-minutes/jerry-and-marge-go-large-lotto-tips-selbee-how-retired-couple-won-39-million/1e5093b5-be35-400f-a142-8ecdf0c289d0" target="_blank" rel="noopener">60 Minutes</a>. "US$50 for a three-number winner and US$1,000 for a four-number winner and the odds were one in, one in 56 and a half for a three-number winner and one in 1032 for a four-number winner." Jerry went on to explain that part of the problem when it comes to playing the lotto is that people think it is structured. "I did not have to be lucky to win. I had to be unlucky to lose." Almost akin to placing a bet on himself, Jerry decided to test his theory and realised that he was right – and quickly came clean to his wife Marge who was all for it. The couple would buy hundreds of thousands of tickets for the WinFall game – but disaster eventually struck when no more tickets were sold in their hometown. Soon the pair had to drive 15 hours to Massachusetts to keep winning a similar style of lottery with the same "loophole" structure, but it was something they were both keen to do. Eventually, they were caught out by investigators but Jerry and Marge were in fact not doing anything illegal. Their story eventually became well known to the point that a film is being made for streaming service Paramount+ and will feature Breaking Bad’s Bryan Cranston. Despite their lifetime of winnings – in the many tens of millions over the years – Jerry and Marge remain quite humble, spending their money on education for their grandchildren and great-grandchildren. Images: Nine

Money & Banking

For the love of Greys – retiree volunteers and retired ex-racers

It’s an unexpected match made in heaven, but retirees hoping to give their time to a good cause could find one in a four-legged friend looking for a home. With National Volunteer Week (16 – 22 May 2022) soon upon us, it’s timely to recognise all volunteers. But there’s a very special group of retirees who go the extra mile for Greyhounds. Contrary to popular belief, Greyhounds are big goofy sooks and will swamp you with adoration and love. They’ll also adopt a place on your couch or bed as a loyal pet. This is why many volunteers and foster carers not only adopt a grey or two, but also actively want to save them from greyhound racing. Not surprisingly, the RSPCA <a href="https://kb.rspca.org.au/knowledge-base/what-are-the-animal-welfare-issues-with-greyhound-racing/#what-needs-to-change" target="_blank" rel="noopener">does not support greyhound racing</a> due to the many unresolved animal welfare concerns associated with the so-called sport. These concerns motivate rescue groups, as well as activists. CPG (the Coalition for the Protection of Greyhounds) is a dedicated group of volunteers across Australia who work together to inform the public about the cruelties of dog racing – <a href="http://www.facebook.com/CoalitionForTheProtectionOfGreyhounds" target="_blank" rel="noopener">FB</a>,<a href="http://www.greyhoundcoalition.com/" target="_blank" rel="noopener"> </a><a href="http://www.greyhoundcoalition.com/" target="_blank" rel="noopener">web</a>,<a href="https://www.instagram.com/coalitionprotectgreyhounds/" target="_blank" rel="noopener"> </a><a href="https://www.instagram.com/coalitionprotectgreyhounds/" target="_blank" rel="noopener">Insta</a>,<a href="http://www.greyhoundcoalition.com/cpg-in-the-media" target="_blank" rel="noopener"> </a><a href="http://www.greyhoundcoalition.com/cpg-in-the-media" target="_blank" rel="noopener">media coverage</a> Retired nurse Annie is one of CPG’s amazingly enthusiastic volunteers. She’s a media spokesperson for the group and is often busy doing radio and newspaper interviews. Her love affair with Greyhounds started long ago. “I saw an ad on Facebook by Gumtree Greys for foster carers, applied and was introduced to Holly. This beautiful black greyhound girl had been an Irish Champion and ‘Bitch of the year’ in 2012. She was bought by an Australian syndicate at two years old and kept to breed from,” said Annie. Holly whelped many litters until she was nine years old and had her last puppies by caesarean. When Annie took Holly to be desexed, the vet said she was a mess inside and had been sewn up with nylon non-dissolving sutures. “Holly taught me all about how gentle, quirky, dorky, loving and unintentionally hilarious greyhounds are, like the way their jaws quiver when they are happy. All of my future foster greyhounds learnt how to become great pets with guidance from gorgeous Holly,” said Annie. “I foster greyhounds because they deserve the chance of a good life as a dog and pet, not just a product or commodity. Greyhounds bring me so much joy. In return, I speak out for them because of what they suffer on Australia’s many racing tracks.” Annie says she’s appalled by the fact that in 2021, there were <a href="https://greyhoundcoalition.com/2021-australian-track-deaths-and-injuries/" target="_blank" rel="noopener">212 greyhound deaths</a> on Australian dog tracks and over 10,000 injuries, according to statistics from official stewards’ reports. Because of this, she volunteers for CPG and other greyhound-related voluntary bodies. She’s also a motorbike enthusiast and uses her motorbike riding to raise money for greyhound welfare. Alicia – one of CPG’s newest volunteers – is semi-retired. She works part-time in journalism and interior design, but adores Greyhounds. Her male black Greyhound, Fluffy, is now nearly seven years old and has been retired from racing for four years. “Fluffy is one of the lucky survivors from the greyhound racing tracks, as he only won one race and is loving his retired life on the couch! He’s a soppy sook despite his size and the name suits him down to the ground as he is not an Anubis or Nero by nature,” said Alicia. “My lovely boy is very nervous due to his past racing days. He’s frightened of loud noises such as cars or motorbikes, as well as thunder and lightning. He absolutely loves children and babies, as he instinctively knows they won’t harm him.” She says greyhounds are ideal companions for retirees as they are lazy couch potatoes, love cuddles, are very affectionate and generally don’t need more than one walk of 20 minutes a day. “I volunteer with CPG by writing content for publication. They really need more people who have at least five years’ experience writing news releases and placing them with media outlets. Greyhounds are innocents with no voice, so we speak up for them,” said Alicia. She said CPG’s <a href="https://greyhoundcoalition.com/5-key-demands/" target="_blank" rel="noopener">five-point plan</a> is aimed at reforming the racing industry. As well as increased penalties for mistreatment, the plan includes tracking each dog from birth to death so they don’t ‘disappear’, reduced breeding, sanctuaries and safer tracks. Fran, previously a lecturer in Environmental Science, is spokesperson and leader of the Tasmanian activist group <a href="https://www.facebook.com/Let-Greyhounds-Run-Free-425546354301519/?ref=page_internal" target="_blank" rel="noopener">Let Greyhounds Run Free</a> (LGRF), which formed as a result of the ABC's Four Corners program on live baiting and the subsequent Parliamentary Inquiry into the Tasmanian Greyhound Industry. LGRF has held several rallies against greyhound racing, and continues to lobby for the end of this cruel, archaic industry. Fran began her greyhound journey back in 2000 when she came across a Greyhound Adoption stall at a local event. She was instantly hooked after meeting a few of these four-legged beauties and adopted the timid and scared Miss Ruby. It was Ruby who introduced Fran to the dark life of a racing greyhound. Ruby was soon joined by regal Jena. Ruby was terrified, and Jena was injured and a severe epileptic - why we may never know, and it was then that Fran vowed she would do whatever she could to end greyhound racing. All these years later, having had the joy of six hounds and several more foster hounds, she now has the privilege of living with Paddy and Jennifer Jane. Paddy became well known in promotions for Let Greyhounds Run Free's rallies. He is also a champion at helping timid and shy foster greyhounds come back to life after their traumas, and adjust to life as it should be, in a safe and loving home. “I have stories about all the beauties who have blessed my life. They are the most gentle, loving, soul-filled, quirky beings and I'm so very grateful I met ‘Miss Ruby Two Shoes’ way back then in 2000” says Fran. Meanwhile, retired lawyer Jeff is also a tireless campaigner, volunteer and lover of greyhounds. He’s been a supporter of the worldwide campaign to end greyhound racing for the last 15 years or so. “When my pet greyhound died in 2015, I promised myself to continue fighting for the cause. That was the year when the live baiting scandal broke in Australia,” he said. “I followed the news reports and the inquiries closely. When an opportunity arose to become an admin at the new Facebook group ‘<a href="https://www.facebook.com/groups/1376102522706650/" target="_blank" rel="noopener">Ban Greyhound Racing – Australia Wide</a>’, it was an ideal way to support the growing anti-racing campaign.” Jeff said the group’s focus has always been on activism. “There are many other social media outlets where people can share pictures of their rescued greyhounds and discuss their care, behaviour and feeding. On our page, we try to be a resource for current information about the Australian racing industry.” Those interested in adopting or fostering a goofy hound, should contact one of the groups listed <a href="https://greyhoundcoalition.com/links-to-greyhound-rescue-groups/" target="_blank" rel="noopener">here</a>, while anyone interested in volunteering with CPG, can find out more <a href="https://greyhoundcoalition.com/volunteering-with-cpg/" target="_blank" rel="noopener">here</a>. For further information about greyhound welfare issues, see CPG’s hot topics listed <a href="https://greyhoundcoalition.com/media-resource/" target="_blank" rel="noopener">here</a>. Images: Supplied

Family & Pets

Retirees, don’t worry about your health deteriorating – leaving work can be good for you

A few years ago, my mother had a bit of a crisis in the lead-up to her retirement. She struggled with her self-worth, perceived value to society and fears of boredom. She’s not alone in her worry. The literature suggests retirees may experience the loss of <a href="http://gerontologist.oxfordjournals.org/content/55/5/802.long#ref-38">identity</a>, usefulness, sense of purpose and <a href="http://www.cornellpress.cornell.edu/book/?GCOI=80140100816130">social relationships around work</a>. For some people, retirement is also associated with reduced income, <a href="http://link.springer.com/article/10.1007%2Fs00391-016-1036-y">social exclusion</a> and <a href="http://www.nber.org/papers/w12123">physical and mental deterioration</a>. Retirement wasn’t all doom and gloom for Mum. Within months of retirement, she was busy with piano practice, dance classes, choir rehearsals, painting and reading. Today she wonders how she survived decades of working. She is one of many who reap benefits from retirement. Our recent study, published in the <a href="http://www.ajpmonline.org/article/S0749-3797%2816%2900045-3/abstract">American Journal of Preventive Medicine</a>, followed 27,257 working Australian adults for more than three years. During this time, more than 3,000 retired. After controlling for various confounding factors, we found those who retired were more likely to enjoy a healthier lifestyle than their counterparts who remained in the workforce. <h2>What else did we find?</h2> During the study period, retirees increased their physical activity by 94 minutes per week, compared with 32 minutes among non-retirees. Retirees also became less sedentary, with a reduction of 67 minutes of sitting per day, compared with 27 minutes among non-retirees. Retirees were also more likely to get a healthy amount of sleep. They gained 11 minutes of sleep per night while the non-retirees lost four minutes. Finally, half of the female smokers quit smoking after retirement, a cessation rate twice as high as working female smokers. Overall, our findings weren’t a surprise. Several prior studies from North America and Europe found retirement was associated with more physical activity in leisure time. This is likely because retirement <a href="http://link.springer.com/article/10.1186%2Fs12966-015-0186-4#page-1">reduces common barriers to physical activity</a>, such as lack of time, low energy and competing priorities. The reduction in sedentary time following retirement that we noted could be explained by a reduction in occupational sitting and commuting. Most office jobs involve prolonged sitting. A <a href="https://ijbnpa.biomedcentral.com/articles/10.1186/1479-5868-9-128">previous study among office, call centre and customer service employees</a>, for instance, found an average of 77% of their work time was spent in uninterrupted sitting. There is evidence that certain types of employees, such as those in skilled occupations, <a href="http://www.ncbi.nlm.nih.gov/pubmed/22368226">sit even more than others</a>. This may explain why, in our study, those with higher educational attainment, people who lived in urban areas and those who worked full-time experienced the most reduction in total sitting time. Our finding about sleep duration is in line with a <a href="http://www.ncbi.nlm.nih.gov/pmc/articles/PMC2768952/">previous French study</a>, which found people had less sleep disturbances after they retired. The mechanisms for the change are unknown, but we hypothesise that it might be due to the removal of work demands and stress, and having more time. Our study is the first to find that female retirees are more likely to quit smoking. Explanations may include reduced occupational stress and disposable income after retirement. Perhaps retirement also prompted smokers to rethink their lifestyles. The behavioural changes we observed among retirees are not trivial; they have <a href="http://journals.plos.org/plosmedicine/article?id=10.1371/journal.pmed.1001917">profound effects on health and longevity</a>. Positive lifestyle changes following retirement <a href="http://www.sciencedirect.com/science/article/pii/S0002934306011855">may therefore lead to better health</a> down the track. <h2>But not everyone benefits equally</h2> Retirement doesn’t benefit everyone equally. Our study showed those who retired before 65, those who worked full-time prior to retirement and those who retired voluntarily benefited more from retirement in terms of lifestyle improvement. This is consistent with <a href="http://eurpub.oxfordjournals.org/content/24/3/433.short">previous research</a>, which suggests the lifestyle changes associated with retirement transition differed by various factors, such as reasons for retirement, and pre-retirement lifestyles and circumstances. So retirement may not automatically lead to better health, but it presents an opportunity to engineer a healthier lifestyle. <h2>Window of opportunity for lifestyle changes</h2> We live in a rapidly ageing society. Globally, the number of people aged 60 years and above is <a href="http://www.who.int/features/factfiles/ageing/ageing_facts/en/">expected to increase</a> from 900 million in 2015 to 2 billion in 2050. In Australia, <a href="http://www.abs.gov.au/ausstats/abs@.nsf/0/1CD2B1952AFC5E7ACA257298000F2E76?OpenDocument">15% of the population</a> is aged above 65 years and <a href="http://www.abs.gov.au/ausstats/abs@.nsf/Latestproducts/6238.0Main%20Features3July%202014%20to%20June%202015?opendocument&tabname=Summary&prodno=6238.0&issue=July%202014%20to%20June%202015&num=&view=">40% of people aged 45 years</a> and over are retired. The health and well-being of retirees therefore plays a critical role in the health of our society. Retirement is a unique opportunity to interrupt previous routines and establish new habits. A number of <a href="http://ijbnpa.biomedcentral.com/articles/10.1186/s12966-016-0336-3">intervention programs</a> have been found to promote healthy lifestyles among adults around retirement age. These use various strategies from professional counselling to in-home and computer-based programs. <a href="http://www.ncbi.nlm.nih.gov/pubmed/23758511">Other interventions</a> have offered an explicit social role, such as foster grandparents, mentors and volunteer works. These are promising options for health promotion among retirees, though the evidence is not yet robust. <h2>What can you do?</h2> Here are a few suggestions for those who are retiring soon. 1) Embrace retirement. Rather than thinking about retirement as the end of a working life, consider it as the start of life after work with new freedom, opportunities and <a href="http://www.ncbi.nlm.nih.gov/pubmed/23199311">identities</a>. 2) Prepare for retirement ahead of time. Plan with key concepts such as health, leisure and enjoyment in mind. Pick up new hobbies, discover new passions, or reconnect with your old interests. 3) Find a new role that makes your life meaningful, whether it is a grandparent, teacher, volunteer or community organiser. Discover new identities within society, make new friends and stay connected. If you’re not retiring in the near future, don’t wait until retirement to live a healthy, enjoyable and fulfilling life. Eat well, be active, get healthy amounts of sleep and find time in your busy life to savour the moment – even just for a few minutes a day.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;" src="https://counter.theconversation.com/content/54179/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/melody-ding-127248">Melody Ding</a>, Senior Research Fellow of Public Health, <a href="https://theconversation.com/institutions/university-of-sydney-841">University of Sydney</a> This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Image: Daniel Lee/Flickr

Retirement Life

Research shows pre-retirees worry about money "almost without exception"

New research from financial advisors has said that nearly every pre-retiree is concerned about whether or not they’ll have enough saved to fund the lifestyle they want. Concerns were also broached to financial advisors about whether the money saved will run out, despite the amount of wealth held by the retiree. Goldsborough Financial Services director Brenton Miegel said that pre-retirees are worried about money “almost without exception”. Having a “really good budget in place” can help ease your mind. “Know what you are going to spend and how you are going to spend it, and allow for unexpected expenses,” he said to <a href="https://www.news.com.au/finance/money/why-australians-worry-about-their-retirement-even-the-millionaires/news-story/c50f32aeaea499b90dd7e68b595bda72">news.com.au</a>. “Get good advice. Speak with a professional financial planner who will look at your situation and offer insight and suggestions without necessarily reinventing the wheel.” Miegel also reaffirms that you don’t need a lot of money to have a comfortable lifestyle. “You don’t have to have great wealth in order to have a comfortable lifestyle,” Mr Miegel said. “Don’t be afraid to use some of your capital to do those extra things like an overseas trip or upgrading the kitchen, without getting silly about it, because you can’t take it with you.” MidSec managing partner Nick Loxton said that most retirees were concerned about maintaining their lifestyle. “You don’t get a lot of chances at retirement and if you get it wrong the consequences are high,” he said. “There is so much information on strategies, investments and tax. Everyone’s different so they often wonder which bits apply to them.” Here are three tips that you can follow to ensure that there’s enough saved in your retirement fund. <ul> <li>Have an emergency cash back-up</li> <li>Know where your income will come from for the next five years at all times</li> <li>Budget to have 10 per cent more cash flow than you expect to spend</li> </ul>

Money & Banking

The rules to a successful retirement life

As retirement approaches for some, and continues on for others, there are steps to maintain a happy lifestyle, so your retirement does not have to be a chore. A healthy approach to mental and physical ageing Being physically healthy is not the only wellbeing factor you should be worrying about. As you get older, reflecting on your mental health as you age is key to maintaining a happy retirement. What can you do each day to nourish your mental health? What can you learn? Putting time aside for yourself in retirement may seem easy, but as each day dredges on, people find themselves helping others more than themselves. Although your physical health is key to maintaining a happy post-work life, focussing on your mental ageing each day is just as important. Nurturing family and personal relationships <a href="https://www.betterhealth.vic.gov.au/health/healthyliving/Strong-relationships-strong-health">Research</a> suggests those in satisfying personal relationships tend to have fewer illnesses and better mental health than those without. The people close to us in life play a large role in defining our character and ability to strive further. Add to the best years of your life with people who make your days better by your side. Maintaining ‘financial comfort’ Many retirees already feel happy with their financial security. However, a successful retirement has no price tag. Manage your retirement in a satisfying and fulfilling way by expelling the financial resources you have in a healthy way. What’s your weekly budget? Do you have a ‘lifestyle budget’ to plan for the fun activities to do in your retirement? Are you retired or are you planning for your retirement? Let us know in the comments below.

Retirement Life

69-year-old retiree has Shark Tank judges in a frenzy

In further proof that you should never judge a book by its cover, 69-year-old retiree Jenny Holten has stunned judges on the popular television program Shark Tank with her idea for a business involving artisan standard gluten-free breads. You sort of had a feeling the panel of entrepreneurs and investors didn’t think much of Jenny as she entered the room and prepared to deliver her pitch, but when she started to go into more detail the show’s judges were left absolutely floored. <iframe width="560" height="315" src="https://www.youtube.com/embed/hUzR310ApYQ" frameborder="0" allowfullscreen=""></iframe> Jenny, a coeliac, explained that she had started the business 10 years ago, originally running it from her home kitchen in Perth, when she was disappointed by the standard of gluten free bread available. Jenny now sells to some of the best local restaurants, with loafs retailing for $13 to $15 dollars despite only costing $1.60 to make. But what really left the judges amazed was the admission Jenny’s business had turned over just under a million dollars last year, and was on track to double it this year. Jenny valued her company at $3.5 million, and was hoping for an offer of $350,000 for a 10 per cent stake in the business. RedBalloon founding director Naomi Simson offered her a deal to get a 25 per cent stake, which Jenny accepted. Congratulations Jenny! Do you know any seniors who are budding entrepreneurs?

Retirement Income

Retired man discovers Jackson Pollock artwork in garage

When clearing out the garage, it’s natural to stumble across the odd forgotten treasure, but imagine one retiree’s shock when he found a lost artwork by famous expressionist Jackson Pollock in his Arizona home. The man, a relative of New York City socialite and art collector Jenifer Gordon Cosgriff, discovered the “gouache” painting alongside a number of works from artists such as Jules Olitski, Cora Kelley Ward, David Porter, Hazel Guggenheim McKinley, John Charles Ford, Louis Siegriest, Isamu Noguchi, and Kenneth Noland. Noland’s piece sold in January for an impressive $145,000. He hired appraisers to assess the value of the artworks, and was stunned to learn he was the owner of a genuine Pollock dating between 1945 and 1949. <img width="499" height="704" src="https://oversixtydev.blob.core.windows.net/media/38255/image__499x704.jpg" alt="Image_ (347)" style="display: block; margin-left: auto; margin-right: auto;"/> “As we're going through the stack and we're down to this last piece [...] I was like, 'God, that looks like a Jackson Pollock'," auction house owner and appraiser Josh Levine told <a href="http://edition.cnn.com/2017/06/12/us/lost-jackson-pollock-painting-garage-trnd/index.html" target="_blank">CNN</a>. "We asked ourselves immediately what everyone else would, ‘Why is this in Arizona?'" The painting will go up for auction on Tuesday, where it is expected to fetch close to $20 million. That’s quite the retirement fund! Tell us in the comments below, have you ever found a valuable item while clearing out your home or the home of a loved one?

Art

These retirees have spent the last four years travelling

Since July 2013, retirees Michael and Debbie Campbell have consecutively lived in 109 different homes around the world, all booked through room and apartment rental service Airbnb. Later this year, a visit to Poland will mark country No. 50. The Campbells' journey as self-proclaimed 'Senior Nomads' began more than three and a half years ago when their daughter Mary was visiting them in Seattle for Christmas. Mary Campbell noticed a lengthy list of countries posted on the couple's fridge that they'd hoped to visit during their impending retirement. She presented an idea: go visit those countries, but instead of spending money on pricey hotels, try an affordable rental service called Airbnb. The Campbells were intrigued. Michael Campbell, a former sports promoter, and Debbie Campbell, a graphic designer, had always been travellers, even moving themselves and their four young children from the US to London for five years to experience life overseas. After months of "crunching the numbers", the couple determined that Mary Campbell's idea could work. "(We realised that) if we took our Social Security and retirement funds and doled that out every month to travel and live in Airbnbs, we could spend the same amount we would spend in our rocking chairs in Seattle," Michael said. The Campbells - who have been married for 37 years - sold their car and beloved sailboat, pared down their possessions, rented out their Seattle townhouse, and bought a round-trip ticket to Paris, France, whe From there, they would embark on a six-month journey around Europe, staying exclusively in Airbnbs with a nightly budget of around $90. After six months, they'd return to Seattle to re-evaluate their scheme. But the Campbells surprised themselves and within three months decided to keep going. Three years later, they are still touring the globe - and they haven't abandoned their budget. Still, a strict budget doesn't hold them back. Michael Campbell is a sports fanatic whose choice activity in any city is attending the big game. Debbie Campbell, a lover of cooking and art, heads to the area's food markets and galleries. And together they take walking tours and look for free and affordable concerts. The couple rarely eats out, but doesn't "feel deprived", Michael Campbell said. "We try and live like locals ... we're shopping in the markets and doing things in our neighbourhood," he said.re Mary lived with her young family. The pair said continuous travel has been a mind shift. "We're not on vacation," Debbie Campbell said. "We're just living our daily lives in other people's homes in other countries." The couple travels light - and they'd like to keep it that way. "If you can't drink it, eat it, write on it, or attend it, then you can't buy it," Michael Campbell said. "It's very freeing," Debbie Campbell added. By now, the Campbells are bona fide experts at booking Airbnbs. Their list of must-haves includes wifi, a large table for working, reading lights on both sides of the bed, and ideally, a location in the city centre. They prefer to book an entire house or apartment to themselves rather than sharing - it feels more like home that way, they said. "There's an art to picking an Airbnb," they said. "We read the reviews really carefully and try to ascertain from the reviews who's really a good host." They then contact about five potential hosts and determine the best match. Last summer, they finally cut ties at "home" and sold their Seattle townhouse, though two of their grown children still live in the area. They plan to keep travelling: "We will keep doing this as long as we are having fun, learning, staying close to our budget and we're still in love." Throughout their Airbnb-hopping adventure, the Campbells have become a poster couple for the Silicon Valley-based travel company. They have visited Airbnb offices in Portland, San Francisco, and Dublin, spoken at a company conference in Paris, and penned a forthcoming manual for Airbnb hosts called "Your Keys Our Home". What an incredible adventure. Have you ever used Airbnb? Written by Tanza Loudenback. First appeared on <a href="http://www.Stuff.co.nz" target="_blank">Stuff.co.nz</a>.

International Travel

Retirees knit jumpers to keep chickens warm

A Massachusetts retirement home has partnered with a local non-profit centre to knit jumpers for chickens to keep them warm. The winters in New England are particularly fierce and the cold can affect the health and egg-laying abilities of the chickens. The knitted jumpers keep chickens warms outside, especially the breeds that shed their feathers and grow new plumes during the course of winter. Knitter Libby Kaplan told ABC 13 News, "When they said they were gonna make these sweaters for the chickens, I thought it was the most foolish thing I had ever heard in my life and everybody that I told laughed at me. They couldn't believe it, but we made the sweaters for the chickens and I'm glad that we did." "I don't think in my wildest dreams I ever thought anybody made sweaters for chickens," said 76-year-old Barbara Widmayer. "It was actually very calming to me to work on this." Local farmers have reported an uptick in eggs so the chickens must be happy and warm in their cosy jumpers.

Retirement Life

Struggling with a sense of purpose in retirement

<img width="94" height="141" src="https://i1.wp.com/retireematters.com.au/wp-content/uploads/2014/05/IMG_2776.jpg" style="user-select: none; background-position: 0px 0px, 10px 10px; background-size: 20px 20px; background-image: linear-gradient(45deg, #eeeeee 25%, transparent 25%, transparent 75%, #eeeeee 75%, #eeeeee 100%), linear-gradient(45deg, #eeeeee 25%, transparent 25%, transparent 75%, #eeeeee 75%, #eeeeee 100%); cursor: zoom-in; float: left;"/>Celena Ross’s plans to ramp up her celebrant businesses were compromised when she found herself part of the sandwich generation of caring for an elderly mother and grandchildren. Struggling with the unexpected hours of caring and faced with a loss of identity in her transition to semi-retirement, Celena established her website <a href="/www.retireematters.com.au">Retiree Matters</a> to assist other corporate women. It is now five years since I left my fabulous government job assisting businesses with their growth and development. I took early retirement as a package and I saw my retirement as time with my daughter as she started her family as well as an opportunity to operate a micro business. In those five years I have become a nana to two beautiful granddaughters and spent many hours caring for them. Many more hours than I anticipated due to baby sleep issues and suddenly finding myself in a carer role of my elderly mother. My eldest granddaughter started school this year, so I only really see her at school pick up – three times a week. But no longer for regular full days. The youngest who is three, we care for each Thursday. So early in the year and with a reduced need for caring, I have found myself struggling. I am missing a sense of purpose. A sense of feeling belonging. A sense of feeling fulfilled and making a difference. I have started the year determined to improve my health after three weeks of physio on my back. I attend a community centre and attend stretching and Pilate classes. I plan to book time with a personal trainer to help me keep on track. I have booked sessions with a psychologist/hypnotherapist to assist me with overcoming some childhood issues. On the wellbeing side, I have joined a women’s group choir. The group sits or stands in a circle and harmonises. I found out it is a form of cappella singing. I loved it. It made me feel grounded, relaxed and uplifted at the same time. After much research, I joined a local VIEW Club – which is a group for women that raises money for The Smith Family, who in turn provide financial support to disadvantaged children. Not long after joining I volunteered for the committee and as assistant secretary I am the guest speaker organiser. Sigh… I just feel brain dead. I feel a lack of stimulation. A lack of purpose. I am still busy assisting and providing care for my elderly mum. The hours of care depend on her health. I have just come out of two months of intensive care hours after she had had a fall. As a celebrant, I have conducted a few weddings. But I am over being involved in all the stress of brides and weddings. Well at least the very big weddings. I still enjoy the small weddings of two to 20 guests. Especially when held on a property or backyard of a home. Just so much more relaxed and intimate. However, I am seriously considering retiring and handing in my celebrant registration. So, now what to do. I looked at University of the Third Age, but nothing I am interested in is available on my pockets of available time. That is of course part of my dilemma. I have pockets of availability in between when I help mum, take her out, take her shopping etc, the day I mind my granddaughter, being at the school by 2.30pm to get a car park close enough for pickup of the eldest granddaughter – then minding them both until 5pm. I also set aside time for the hubby – he is at golf three times a week. Soooooooooo! What can I do to stimulate my mind? What can I do that will give me a sense of purpose? I just feel the days and weeks are passing so quickly. What do I want to do with my life? I don’t want to “just fill in the hours”, with gym, lunches, bowls – oh I did try some bowls but then it got SO HOT! I will look at that in the cooler months. I learnt crochet. Loved that but made everything I really want to make. I will look at making some items to donate. My thoughts are to join and volunteer with another charity. Maybe some volunteer office work. Perhaps use my event management background and stage an event of some sort. My needs are – new friendships in my age bracket for now until… well, until death us to part! As well as brain stimulation and a sense of purpose. Well it is now time to think about dinner. Gawd, I am after nearly 43 years of marriage over coming up with ideas for dinner. Thank goodness for the good old basics of spag bol, sausages, roast chicken! I love baking, but everything I love to bake my daughter tells me has too much sugar! And hubby has asked when I am going to diet and lose weight! ARGH! Oh look, it is wine o’clock… must go! Follow Celena Ross on <a href="https://www.facebook.com/Retireematters/" target="_blank">Facebook here.</a> Do you have a story to share? Write for us! <a href="http://www.oversixty.com.au/community/contributor/community-contributor/">Head over to the Over60 Share your story page to get started today.</a> Related links: <a href="http://www.oversixty.com.au/lifestyle/retirement-life/2017/02/bride-asks-92-year-old-grandmother-to-be-her-bridesmaid/">Bride asks 92-year-old grandmother to be her bridesmaid</a> <a href="http://www.oversixty.com.au/lifestyle/retirement-life/2017/02/seniors-perform-carpool-karaoke/">Young-at-heart seniors perform hilarious carpool karaoke</a> <a href="http://www.oversixty.com.au/lifestyle/retirement-life/2017/02/elderly-couple-celebrates-76-years-together/">Adorable couple in their 90s celebrate 76 years together</a>

Retirement Life

I’m busier than ever in retirement and I love it!

Jan Murray, 76, recently retired but she’s not taking it as time to relax. Jan’s using retirement to complete all her unfinished projects and is currently studying a Bachelor of Complementary Medicine. <img width="178" height="154" src="https://oversixtydev.blob.core.windows.net/media/27667/jan-murray_178x154.jpg" alt="Jan Murray" style="float: left;"/>Retirement is your time to relax – really? Don’t think so! Retirement is my time to shine, to achieve what has been a niggling feeling in the back of my brain since I was a young girl. In 1951, I began working for a milliner on a Saturday for seven shillings to help out in our house after my mother died. I was now "head cook and bottle washer" for our family. Later at age 14, I trained as a beauty consultant with Cyclax (remember them?). I often wondered what those lovely ladies in Geelong thought about getting their beauty advice from a young girl, but it was good experience for life. My mother’s death was my motivation to succeed and to gain knowledge. Maybe I felt insecure? But it became a thirst to learn, I wanted to be like that saying, a “Jack of all trades, master of none!” I was 16 years old and already in nursing training when love came calling. I had four children in quick succession and at 29 years of age I began studying again, although mainly beauty and fashion type study, which helped supplement family income. I worked for a large cosmetic company as a district manager. My husband was a professional footballer, who later became injured. We moved a great deal during the 70's and my role was secondary at that time – family came first – I worked, but wished I was able to study. Always that niggling feeling… one day I will finish nursing, get a degree and become a graduate. Mother, grandmother, great-grandmother – what an achievement! The years passed quickly. I always supported myself best I could, as husbands came and went, the children grew and achieved their own goals. The children always supported me in my thirst for knowledge but I think they wonder, “Why doesn't she just slow down?” Luckily I am blessed with good health, but early in 2016, I knew something was changing in my body. I decided to retire from my nursing job of seven-plus years. “It's time to stop!” my body told me. But my mind said no. “My heavens! You are wanting to start university and you are 76 years of age! Do you think you will ever graduate?” “Do you think I can get HECS?” I asked. “I don't know,” was the answer, “I have never enquired, I suppose if you have a tax file number you can study using the fee-help system.” So the journey commenced. I thought to myself, if I am going to do this degree I had better get some study practise, so I looked on the internet and found some free courses on <a href="https://www.open2study.com/" target="_blank">Open2Study</a>. These courses are supplied by various universities in Australia and cover many subjects. There are online lectures by leading professors of various universities and take a month to complete. I enrolled in Food and Nutrition, The Human Body as a Machine, Microbiology and Forensic Science, Common Diseases of Humans, and Anthropology (which was my favourite). Some, because of my medical background, were easy enough; some were challenging to say the least, but I like a challenge. On completion of the course you can print out a certificate (60 per cent is a pass). If you don't pass you can re-enrol. I was ready to take the next step so I enrolled in a Bachelor of Natural Medicine and will graduate in 2019. I wish to do research in food as medicine, anthropology and eating disorders of modern humans. Our ancestors didn't have laboratories, they had to figure things out using what was available from nature. Hopefully my research may provide a light bulb moment or two. Busy times ahead, so for those who told me, "Retirement is a time to relax,” I say, "Not for this girl, too much to find out!” If you have a story to share please get in touch at <a href="mailto:melody@oversixty.com.au">melody@oversixty.com.au</a> Related links: <a href="http://www.oversixty.com.au/lifestyle/retirement-life/2016/08/tips-to-help-your-marriage-survive-retirement/">Can your marriage survive retirement?</a> <a href="http://www.oversixty.com.au/lifestyle/retirement-life/2016/07/is-happiness-really-what-we-are-after-in-retirement/">Is happiness really what we’re after in retirement?</a> <a href="http://www.oversixty.com.au/lifestyle/retirement-life/2016/08/tips-for-a-happy-and-healthy-retirement-on-a-budget/">Tips for a happy and healthy retirement on a budget</a>

Retirement Life

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Retired man discovers Jackson Pollock artwork in garage

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Retirees knit jumpers to keep chickens warm

Struggling with a sense of purpose in retirement

I’m busier than ever in retirement and I love it!