The Age Pension represents a significant part of income for many pensioners in Australia. Depending on your superannuation balance and assets, the amount you receive will vary.
For those with little or no superannuation assets, living on a full or part pension can be tough.
There are a number of simple things you can do to ensure you are making the most of your income.
1. Have a budget
Having a budget is smart. It enables you to know what you are spending, how much you have and enable some level of future planning. Start with working out your expenses (include everything from small to large costs) while also thinking about what may also happen throughout your entire retirement.
It may also be a good idea to use an online budget planner. MoneySmart have one that is effective and simple to use.
2. Be confident in your income
You need to live inside your income. If you are concerned, play it safe for a while so you can understand where hidden expenses may arise.
Either way, you should have a rough idea of how much you will have. A financial planner is a good person to talk to if you are concerned. We understand that cost may be a concern, but it may still be worth looking into. Your first appointment with our planners is complementary. Why not have a chat and see if you can fit it in your budget? We’re here to help!
3. Make sure you are doing things that make you happy
You may not be going to Paris, but that doesn’t mean that you can’t take a trip locally.
Make sure you leverage family and friends, or spend more time with your church community. Whatever it is that makes you happy, ensure that it is a big part of your life.
Get in touch if you need us!
4. Give credit a miss
Avoiding credit cards is a smart way to not pay hefty interest payments. Although it may be tempting to use credit to get those things you want, you need to be careful. Interest payments can stack up quickly and really hurt you financially.
As mentioned above, careful budgeting can assist in avoiding the need for credit cards.
5. Hold on to what you have
As you get older, it’s tempting to give money to family or friends. But, firstly, you need to think about yourself. Do you have enough to give away? What if something unexpected happens? You have worked hard your entire life.
Your retirement is your time! Don’t be afraid to say “no” if you need the funds.
6. Speak to your superannuation fund
Keeping in touch with your super fund is a great way to ensure you are across changes to the Aged Pension. It is also a great way to keep up with any other changes to your pension, and a way to get any questions or concerns you have answered.
At Australian Catholic Superannuation, our mission is to empower our members to live their best possible retirement. This doesn’t stop when you become a pension member – if anything, it increases! We want you to talk to us often, and we want to help you the best we can.