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Blog · Money & Finance

How to manage money worries during retirement

If you are worried about your finances in retirement, you’re not alone. Fear of declining health, losing your sense of identity, or your significant other’s passing are some of the top fears experienced by many retirees as they get older.

But the biggest fear is often financial, with many worried about outliving their savings.

The economy is always uncertain, so how can you overcome financial fear? 

We all know that increasing inflation rates puts more pressure on living expenses, particularly for pensioners. Even though pensions are indexed, many people may not have access to enough funds to see out their retirement. With people living longer lives, on average, this risk is increasingly real.

Finance Author & Journalist Noel Whittaker says that by downsizing from your large family home, you can free up equity to ensure you don’t run out of money in retirement.

“You never want to be caught short of that cash to pay the bills. That’s why I think to downsize and take the money out of your house is a good, safe option.”

Some advantages of downsizing may include better cash flow, lower bills, less maintenance, more time for the things you enjoy and more control over your money. 

When should you decide to downsize?

According to Noel, “If you’re going to downsize, my advice is to do it sooner rather than later. Normally, people downsize from a big older house, which gets increasing maintenance as time passes. You don’t want to reach a stage where the costs of fixing up the house to sell it are more than what you can get.

“No one knows which way property markets will go in the future and to sell now means you can buy at today’s prices.”

So, what are some of the downsizing options?

A happy retirement depends on many factors. Your lifestyle, social connections and location are fundamental parts of the equation. There is no denying it can be an emotional or even overwhelming time, but it can also be an exciting new chapter.

For some, staying in their family home is the right answer for them. There are options to get services and care delivered, but this may put emotional pressure on your family if they are worried about your wellbeing.

For others, moving in with relatives, downsizing to live in an apartment complex or perhaps a purpose-built retirement community are some of the other options to consider.

It all comes down to your individual circumstances and what you feel will best suit you and your needs throughout your retirement years.

Is retirement living a good choice for you?

There are many benefits of making the move to a retirement village. Whether it’s the low-maintenance lifestyle, having access to facilities and social activities, being part of a vibrant community of like-minded people or having more support around you.

For Dennis, a Domainé Retirement Living by Aveo resident, moving to a retirement village meant less worries and more time to explore his creativity, like painting, as he didn’t have a big house to maintain anymore. 

“You don’t want to spend your retirement climbing ladders to clean out downpipes and gutters or mowing the lawns,” laughs Dennis. 

For Roger and his wife Gabrielle, residents at Parkside Carindale Retirement Living by Aveo, the move gave them more financial certainty.

“Everything’s laid out. What you paid. What you’re going to get at the end. So the family knows exactly what’s going to happen. We’ve often talked about it that it was probably the smartest decision we’ve made,” says Roger.

Moving into a retirement community is a big decision, so for anyone who doesn't feel it’s the right fit for them, Aveo offers a six month money back guarantee.* 

So, where should you start? 

The best way to overcome your money worries in retirement is to think about your future goals and what lifestyle aspects are the most important to you. Do your research, explore all the options that interest you and consult with your financial advisor. They will be able to give you some peace of mind and guide you on how best to invest your money and manage your budget. 

If you’re considering retirement living, try to visit as many retirement villages as possible to find the right fit, as no community is the same.

*For full T&Cs, refer to your disclosure information and residence agreement. Six month money back guarantee/settling in agreement relates to exit entitlement, not necessarily all money spent.

The information provided by Noel Whittaker in this article and the information provided in the First Steps retirement living information sessions is general only and may be provided by a third party. It does not take into account your personal circumstances. Aveo encourages you to seek independent legal and financial advice about your particular circumstances before entering an Aveo retirement village.

Retiring in today’s economy

Watch our retirement living information session with Noel Whittaker as he explores ways to feel more financially comfortable in retirement.

Watch Now

First Steps: Retiring in today’s economy

Watch our retirement living information session with Noel Whittaker as he explores the state of the economy and ways to feel more financially comfortable in retirement.

Watch now
First Steps: Retiring in today’s economy image

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