In today’s world of rising costs and economic uncertainties, building wealth after the age of 60 might seem like a daunting task. However, it’s essential to remember that it’s never too late to take control of your financial future and explore innovative ways to boost your income and savings.
The Association of Superannuation Funds Australia (ASFA) reveals that singles aged 65 to 84 need an annual income of about $50,207 for a ‘comfortable’ lifestyle in retirement, while couples require a combined income of $70,806 per year. With the full Age Pension falling short of these numbers, many older Australians are seeking alternative ways to supplement their income during retirement.
Let’s delve into some practical and achievable wealth creation ideas tailored to older Australians who are looking to secure their financial wellbeing.
Intentional spending
Cutting down on non-essential spending is a powerful way to save money. Review your discretionary expenses and identify areas where you can make reductions. For instance, consider cooking at home instead of dining out, exploring free or low-cost local activities for entertainment, and delaying the purchase of luxury items. Prioritise experiences that provide value without straining your budget.
Pressure test your retirement strategy
It’s essential to regularly review your retirement plan, taking into account the evolving financial landscape, legislative changes and opportunities to minimise costs. By doing so, you can maximise the funds under your control and make informed decisions that align with your retirement goals. Keep in mind that the financial world is dynamic, and staying proactive in managing your retirement assets can lead to a more secure and comfortable retirement.
Make money on the side
Embrace the digital age and leverage online marketplaces to turn your unneeded possessions into cash. If you’re not tech-savvy, don’t hesitate to enlist the help of your grandchildren or any trusted youngster who can guide you through the process. Selling items online not only declutters your living space but also opens up opportunities to supplement your retirement income. Embracing technology can be empowering and profitable at any age!
Part-time job opportunities in the gig economy
Embrace the gig economy by exploring part-time job opportunities. Various platforms offer flexible work arrangements suitable for seniors, such as rideshare driving or food delivery services. These roles allow you to set your own hours and supplement your retirement income.
Freelancing or consulting
Your years of experience and expertise are valuable assets. Consider venturing into part-time freelancing or consulting opportunities within your field. Many businesses are eager to hire experienced professionals for specific projects or advisory roles, providing an opportunity to boost your income without a full-time commitment.
Renting out a spare room
If you have extra space in your home, consider renting out a spare room to short-term guests. Websites such as Airbnb make it easy to find renters, providing a consistent source of income and helping to cover housing costs.
Compare and save
Once you’ve reviewed your spending habits, identify areas where you can potentially save money by shopping around and obtaining comparison quotes. Renegotiating bills and subscriptions can also yield significant savings. Don’t forget to review your insurance policies, adjusting the coverage and excess to potentially reduce premiums.
Creating wealth in your golden years may seem challenging, but with the right approach and determination, it’s entirely achievable. By exploring these simple and practical ideas, older Australians can take steps toward securing their financial future and enjoying a comfortable retirement. Remember that every financial decision should align with your individual circumstances and objectives.
However, it’s crucial to note that earning extra income during retirement can impact Age Pension payments. It can be worth seeking financial advice about the best way to increase income in retirement without compromising any other entitlements. Consider seeking professional guidance to make informed choices on your path to financial security, ensuring a comfortable and worry-free retirement.
Do you have tips for other members on how to make some easy extra income? Share them in the comments section below. Also, if you have a question for Amanda, send it in an email to editor@yourlifechoices.com.au and put ‘Ask Amanda’ in the subject field.
Also read: Your retirement journey should fit you perfectly. Here’s how
Amanda Thompson is a financial adviser, founder of Endurance Financial and author of Financially Fit Women.
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.
I’m not sure what ASFA considers to be a ‘comfortable’ retirement but I’m quite happy in retirement with $38,000 p.a. Perhaps they think that all retirees need to holiday abroad every year?
Yes, their figures are a little out there. Two of us manage fine on $42K, feel very comfortable, including paying for accommodation in Sydney when we frequently visit relatives.