Making your money last is the number one retirement concern.
For years, YourLifeChoices has had its finger on the pulse of retirement, constantly checking in with older Australians about their biggest challenges and triumphs. The one constant we find is that running out of money is the biggest retirement concern.
In the most recent YourLifeChoices Retirement Income and Financial Literacy Survey, almost three-quarters of all respondents were convinced or unsure that their retirement savings would not last.
The cost of healthcare, energy, insurance, fuel and consumables rises each year, steadily eating into retirement savings and taking huge chunks out of retirement income such as the Age Pension and money derived from super.
And our increased longevity only exacerbates the fear of not having enough money to fund retirement.
Energy and healthcare costs are the biggest drains on retirement savings, says the YourLifeChoices’ Retirement Matters survey conducted in September this year.
Other constant costs include housing, insurance, recreation, transport, food and drink. With the cost of living increasing each year, these expenses will only continue to grow.
As much as rising costs are a concern, it’s the worry about running out of money that’s causing the most stress.
The good news is there is a way to remove the worry from retirement with a tool to help manage these costs and stretch your retirement income.
YourLifeChoices’ RetirePlanner™ is an innovative retirement tool that helps you track the cost of living, through the Retirement Affordability Index™.
RetirePlanner™ allows you to enter your annual expenses and, once they are automatically assessed against the Retirement Affordability Index™, you’ll be categorised in your particular Retirement Tribe.
Your expenses are then broken down and compared to retirees in your income bracket. This groundbreaking ‘calculator’ allows you to see where your money is going and how you can ‘tweak’ your lifestyle to make best use of your cash.
The data that drives the Retirement Affordability Index™ is updated quarterly to match rising CPI and give you an accurate indicator of how much you’ll need to fund your retirement lifestyle.
All of your retirement costs – from fuel and energy costs or rent or mortgage repayments to clothing and food – are filtered and presented in dollar values and expenditure percentages. This means you can not only track your spending but also see where you can cut back costs and stretch your income.
Want to save for a holiday? The RetirePlanner™ can help. Simply assign the amount you’d spend on a trip and the spending comparison will show you where you can shift money from other expenses to help boost your holiday savings.
The calculator also gives you the ability to modify your spending, so you can actually save money in retirement.
The RetirePlanner™ could be the wisest investment you make for your retirement, whether you’re living off your super or the Age Pension.
Another valuable aspect of the tool is the Age Pension Calculator. This is especially good for anyone who is running out of super or moving towards Age Pension eligibility.
Don’t know if you’re eligible? Enter your assets, current income and living situation into the Age Pension Calculator and it will tell you if you can get a part or full Age Pension. It works on the same principle as the Centrelink income and assets test. Once you input your details, the calculator will tell you if you’re eligible and how much you’ll get, so you can start planning sooner.
Having trouble keeping up with Centrelink rule changes? Let the RetirePlanner™ do the worrying for you. Figures are updated as indexation occurs, so while one quarter you may not be eligible for the Age Pension or even a concession card, the next you could be and, by keeping up to date with the changes, you’ll maximise your chances of receiving all the money to which you’re entitled.
“This tool has taken an extremely complex process and made it as simple as possible. I now know how much I will get,” says YourLifeChoices member Henry.
While having to fund your retirement is a major concern, RetirePlanner™ provides a clear, step by step guide to what you can expect to spend in retirement, and how you can better manage your money, effectively eliminating part of the worry.
Are you worried about running out of money? The RetirePlanner™ tool has all the information you need to relieve your concerns.
Disclaimer: All content on YourLifeChoices website is of a general nature and has been prepared without taking into account your objectives, financial situation or needs. It has been prepared with due care but no guarantees are provided for the ongoing accuracy or relevance. Before making a decision based on this information, you should consider its appropriateness in regard to your own circumstances. You should seek professional advice from a financial planner, lawyer or tax agent in relation to any aspects that affect your financial and legal circumstances.