How to make your money stretch further in retirement

Once you’ve retired and stopped receiving a regular income, you may find yourself relying on the Age Pension, which is widely regarded as inadequate, or on savings you’ve stashed away in a superannuation fund over the years.

Just because you’ve retired doesn’t mean your outgoings will suddenly plummet though and many people struggle to make ends meet once they’re no longer receiving a pay cheque, forcing some retirees to return to paid employment or sell their home and cash in on any assets they may possess.

However, there are several ways you can make your money stretch that bit further in retirement – Compare the Market’s General Manager of Banking, Rod Attrill shares about how people can make the most of their money.

“Make sure that some of the normal day-to-day expenses, whether it’s discounts with concession cards or discounts on something like energy, are reduced,” Attrill said.

“Just making sure they’re getting the right discounts for various things that they may not have been as conscious about when they were working full time or had a bit more money straight after retirement. It’s really important when your income isn’t as high to make sure you are getting the right benefits available to you. That can be cheaper medicine, medical costs, all sorts of stuff.”

Attrill added that it’s also really important to compare your policies for the likes of health insurance or energy online to make sure that you are getting the best possible deal.

“Any time that anything comes in, whether it’s an energy bill or an insurance bill, compare to make sure that all discounts are being applied and in fact they are getting the right deal,” he said.

He also highlighted the benefits available from applying for a Commonwealth Seniors Health Card which entitles senior Aussies to cheaper health care, including costs for medication and consultations, once they have reached pension age.

Attrill added: “You can have access to cheaper medicine, bulk billed doctor visits and bigger refunds for medical costs. On top of this, you can receive discounts on electricity and gas bills, property and water rates, public transport fares and motor vehicle registrations.”

Earlier this year a study revealed that 39 per cent of Baby Boomers, defined as those born between 1946 and 1964, are classed as financially vulnerable.

The study, also conducted by comparethemarket.com.au, highlighted a stark difference within the Boomer age group as the generation emerged among the most – and least – aware when it comes to money matters, compared to other age groups.

Those aged between 55 and 64 came out as the most financially conscious, scoring 52.5 out of 100, meaning they are taking time to consider their financial circumstances and taking steps to ensure they’re prepared for the future as they approach retirement.

However, those over-70 were found to be far less financially conscious, scoring just 47.8 out of 100 which placed them in the ‘it’s a blur’ category, according to the Financial Consciousness Index developed by Deloitte Economics.

Do you worry about your finances in retirement? Your circumstances and retirement goals will play a big part in what you decide to do. Give us a call at 08 8231 4709 or send us an email at info@centramoney.com.au to find out how we can help you achieve your financial goals.

Article reproduced from StartsAt60

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Zac Zacharia (Managing Director) has been assisting clients to create wealth and secure their futures for over 14 years.

He is also an accomplished presenter and educator

Co-authoring the popular investment book, Property vs Shares.