Alice’s move to a better place
For many retirees, home is where they want to be – to be part of a community, to stay connected to friends and family, and to enjoy their independence. If you’re thinking about what the options are for you to continue living where you are, you’re not alone. With some planning, and the right resources, you can continue to live comfortably at home, knowing you have support when you need it.
Australia’s aged care system is undergoing significant reforms, reflecting the strong preference of older Australians to remain in their homes as they age. The upcoming ‘Support at Home’ program is set to replace existing home care schemes by July 2025, and aims to make it easier for people to access tailored support services that fit their needs.
Let’s explore how government programs, financial strategies, and even small home improvements can help you create the retirement lifestyle you really want..
Meet Alice
With $240,000 in superannuation, Alice is taking her first steps in a new chapter of her life. Recently divorced and settling into a new area, she is keen to create a home that is safe, comfortable and uniquely hers. Upgrading the outdated bathroom is a priority – it definitely needs it – and also on her ‘to do’ list is purchasing a reliable car for everyday use. Alice is looking forward to planning regular trips to visit her daughter, who is now nearby.
What she’s unsure about is whether she can afford all of this. And if she does spend some of her retirement savings on these bigger-ticket items, will that mean her superannuation will run out too soon?
Through a Retirement Essentials Retirement Forecasting consultation, Alice discovered that she could access the full Age Pension of $29,784 (based on September 2024 rates). By starting an Account-based Pension (ABP) and withdrawing just 5% of her super ($12,000) she’ll have $41,784 for her first retirement year. Including her planned expenses, she is likely to be able to meet her spending needs while ensuring her savings last well into the future.
The Retirement Forecast projection also enabled Alice to look at the long-term impact of major purchases alongside daily expenses, ensuring she has enough saved for holidays and other priorities, while checking her savings are likely to last the distance through retirement. With this plan, Alice feels confident about funding her renovations while still maintaining a budget for everyday costs, a reliable car and family visits.
Help at home
Whilst Alice can manage well on her own at the moment, thinking ahead she could also explore the Commonwealth Home Support Programme (CHSP) which offers services like cleaning, personal care and minor home modifications. These resources can make a positive difference in helping you stay safely at home longer.
Financial options for homeowners:
Accessing extra funds
If you’re a homeowner like Alice, there are other ways to free up funds if you need them for home improvements or other expenses. The Home Equity Access Scheme allows you to draw on the equity in your home as regular income, which can be particularly useful if you’re looking for additional cash flow without needing to sell.
You might also consider a down sizer contribution if you’ve sold a property and want to invest a portion into your superannuation. This move can help boost your retirement savings while still giving you flexibility.
Financial options for non-homeowners:
Rent assistance
If you’re renting, staying in your community might look a bit different. For eligible renters, Rent Assistance can provide a boost to help cover costs, so you can stay comfortably in the area you know and love.
Services Australia will assess you automatically when you claim a payment such as the Age Pension. So the first step is to make sure you have applied for the Age Pension. You can check your eligibility on our free Age Pension Calculator.
Retirement Essentials consultations using our Retirement Forecaster are designed to help members like Alice balance spending and saving, offering guidance on safe spending levels over the long term. With this support, Alice has now gained the confidence she can live comfortably in her home for many years.
Working this way offers support for our members to be in control of their money with good confidence, reassured they are making an informed decision.
The Bigger Picture: Future proofing your retirement
Ultimately, future-proofing is about ensuring you feel secure, connected and independent for as long as possible. With a mix of government support, smart financial planning and maybe a few adjustments to your home, you can continue to live comfortably in your own space well into retirement.
