Retire rich on a low income

Retirement is another country. So which one will it be for you?

Retire rich on a low income

Your dream retirement may resemble the sunset beaches of Bali, with the promise of a life of leisure and ‘me-time’, where days merge seamlessly into each other. Is it Monday, Wednesday or Saturday? Who cares when you can lie back and relax?

Others think retirement should be more like Italy – a super busy mix of work, social activities and family. For these retirees, work is the important glue which adds structure to their days and lives, and provides a much-needed stream of cash to keep the party rolling. While others may long for a more conservative regime – say Germany – where things are highly organised, tightly budgeted and entirely predictable.

The good news is, whichever ‘retirement nation’ you choose, it is possible to lead a rich retirement on a low income. How? you might wonder, as you struggle with the knowledge that you will be one of the 75 per cent of Australians aged 65 plus living on a fixed income based on a full or part Age Pension. If you are one of the fortunate 25 per cent not likely to be on a pension and with access to life’s luxuries, congratulations.

But even the financially well off will need to plan to avoid what might become an empty and unfulfilling lifetime of Saturdays. So read on for our essential ingredients to transition to a rich retirement, regardless of your income.

Make a well-planned transition

Change frightens most people. This is regardless of whether the change is to a desirable life stage such as retirement. Many of us need time to work our way into a new situation. So to give up full time work and lurch into full time vacation, paradoxically, tends to place many people under a great deal of stress. A loss of identity, swiftly followed by a loss of self-esteem can follow. Those who segue into life after work tend to do much better in the happiness stakes. So, starting your move from full-time work into one or two days fewer per week makes a lot of sense. Perhaps the new trend of ‘long-weekend retirees’ (LOWEs) is the way to go – working Tuesday, Wednesday and Thursday in your regular job and exploring ‘life after work’ across a longer weekend.

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    COMMENTS

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    bookwyrm
    15th Jan 2015
    10:11pm
    The Abbott goverment has been sounding off strongly recently against the idea of old age pensioners being allowed to live overseas. They have age pension portability firmly in their sites. To them, old age pensioners are bludgers, along with anyone else who receives a Centrelink benefit.
    Precious 1
    15th Jan 2015
    10:24pm
    I can see where you coming from indeed some are like that too......they seem to spend their spare time working out ways of fiddling all and any system that any country has in place......
    aly_rob60
    16th Jan 2015
    11:25am
    What everybody seems to forget, is that we have paid taxes all our lives and just because we want some of it back, that makes us bludgers! Nothing makes me more angry than seeing all these new immigants (illegal or otherwise) that sit in our hospitals and doctors surgeries and Centrelink offices expecting to gt everything that WE HAVE PAID FOR, for free!

    Age of Entitlement is over???? My arse! We should be allowed to work as long or as little as we want to, live where we want to and still be entitled to some of our taxes back!
    Cheezil61
    16th Jan 2015
    1:46pm
    Very well said aly, but not just immigrants that do that in those places either... it seems we work (& pay taxes the longest) & you get penalized the hardest, simple as that! About time the governments (whoever is in at the time!) penalized the right people & took better care of the ones that deserve/have earned it for a change!
    bookwyrm
    17th Jan 2015
    1:02am
    I believe old age pensioners should be allowed to live where they like, they have earned it. But the Abbott government doesn't think so. Why then are Brits, Germans etc allowed to retire overseas? Why should Aussie pensioners be treated like dirt by their own government. In Germany, they have recently brought the retirement age down to 63.
    Precious 1
    15th Jan 2015
    10:21pm
    I feel very rich as I have excellent health, happy, and have also had a wonderful life and still having one....on a low income...We seem to be led thru the media etc and advertising that we all need huge amounts of money to retire comfortably....Gosh I ve know lots with piles of dirty luca who have been sick, diabetis mental disorders , drink probs etc etc and I would hazard a guess cos they had money which led them to their demise......our parents had very little as war years but I never once heard anyone complain..they nothing else...happiness lies within us and and few seem to have it these days.....
    Precious 1
    15th Jan 2015
    10:22pm
    We all had our own home paid up and furniture passed down the families too.........
    Cheezil61
    15th Jan 2015
    10:52pm
    it is easy to say stay connected, but very difficult to do if no one else wants to stay connected with you! Unfortunately, I am finding that as I get older (and I'm only 53) that most other people, friends & family included, do not wish to stay connected with me for some strange (unknown) reason. -I'm always the one visiting/contacting others (whenever possible) without reciprocation-not even a phone call or text, let alone visit & this makes me feel quite sad & lonely! You get to a point where you get sick of trying & feeling like no one would miss you if you were to die/disappear/become a hermit! Not good!
    aly_rob60
    16th Jan 2015
    11:28am
    Hmm, yes. I am 54 and find the same thing. I had many friends, some even going all the way back to Primary School and High School and now I am lucky if I see even one of them.

    I do all the chasing,..... does that make me needy?
    Cheezil61
    16th Jan 2015
    12:51pm
    Yes aly_rob60 I wondered the same, are we needy? I would be interested to know the answer-what to do about it, in relation to this article & all of the others I have read along the same lines that we need to keep relationships/friends/family around us to keep our marbles, etc...
    bookwyrm
    17th Jan 2015
    1:06am
    Everybody is busy nowadays. I would advise to join a hobby group. Over the years I joined a community choir, went to WEA French classes and now am thinking of going to the craft group at the local Leagues Club. Or I might go back to the choir or French classes. They were both very social.
    bookwyrm
    17th Jan 2015
    1:09am
    Actually, my three friends I see nowadays I met in community choirs. I also ran into a woman in her 60s who said why don't you come back to the choir, I can give you a lift home after.
    Cheezil61
    3rd Sep 2015
    7:06am
    Thanks bookwyrm for your suggestion; I have been to gym a few times & find the same with people there- they are friendly & speak but have not really connected with anyone as we are all busy & in a hurry as you said above! I do alternating shift work & aligning busy schedules with others is almost impossible to add insult to injury & my collegues can be just as difficult to catch up with as my friends & family (who I put my time/energy into priority)!
    Usure what other hobbys I can keep up with or like, that my shift will allow me to dedicate regular time to unfortunately.
    KB
    3rd Aug 2016
    4:35pm
    It could be that old school friends have extended families of their own with grandchildren etc. Have you thought of organizing a reunion where you can meet? Do some volunteer work in aged care facility They often need someone to talk to or take them out
    speakup
    16th Jan 2015
    6:47am
    Yes Bludgers that have made this country and helped to put Abbot in power ,and he should be more respectful as there as Pensioners now live longer and our numbers are multiplying rapidly
    aly_rob60
    16th Jan 2015
    11:33am
    We should be better off than ever with the population we have now! Look at all the cars on the roads, for example. How much in taxes is the Govt making on them alone?


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