Three weeks ago we asked our readers “What advice would you give to others nearing or in retirement?”. Thank you all so much for your contributions. We will share some with you today and over the forthcoming weeks.
Have a plan to keep active and engaged
For many, retirement is a terrific time of life. In fact when we asked readers:
- 47.3% felt it was the best time of their lives,
- 39.1% were neutral and
- only 14.6% didn’t think it was the best phase of their lives.
This is fantastic and exciting but as we are living much longer in retirement these days it is important to stay healthy and stimulated. Some suggestions included:
- Build social networks – friends, family and interest groups
- Volunteering
- Have one goal to achieve each day – it doesn’t have to be big
- Have fun
- Keep moving
Get help or advice including
- Help with setting up your super – before and after retirement,
- Help to deal with Centrelink – it really is a nightmare for some people
- Structuring your assets to help maximise your entitlements e.g. paying for that new bathroom or kitchen before you apply for the age pension rather than after can make a big difference
- Just talking to people – you are not the first person to plan for or experience retirement
- Advice on how best to pay off or reduce debt before you retire – peace of mind is vital
What occupied your mind the most?
We also asked readers what occupied their mind the most when planning for retirement. The response here was overwhelming.
- 64.6% of people said it was how to fund their retirement
- 12.8% said travel and lifestyle
- 9.9% mentioned health considerations and
- 4.5% proximity to friends and family
What did you want to hear about from us?
And finally we received a lot of feedback on what people would like us to write about in our emails and blogs. Some popular topics that we will expand on in the future included:
- Investment articles including how different investments can affect your entitlements
- Any changes the Government makes to entitlements including pension rates, thresholds and tax treatment of assets and investments
- More articles to help self-funded retirees
- General investment articles
- Pros and cons of downsizing
- How to navigate the Centrelink nightmare
- Avoiding the common pitfalls that can impact your entitlements
- How to fund my retirement
- What are all the concession I can receive if I hold the Pensioners Concession card or the Commonwealth Seniors Health Card?
There was a lot more and some of you also wanted us to take the Government to task for their treatment of Seniors while one reader said that we should all just think up the three things that really matter – your health, your finances, and the people you care about. That’s a pretty good philosophy.
So what would other advice could you offer retirees? You are welcome to add your comments or you can check your entitlements here.
Do ‘reverse mortgages’ offer good value for homeowners? They once had a poor reputation, but apparently much improved.
Hi Chris. Reverse mortgages and other equity release schemes, including the Government’s Pension Loans Scheme, give homeowners the chance to supplement their income by using the equity in their home. There have been a lot of improvements since the early days and depending on your circumstances they could be terrific. But they are not for everyone as there are some risks and pitfalls and some are better than others. You should definitely get some advice if this is something you are considering
I woud like to enter into a discusion as to why our council determines the yearly rate amount taking in consideration our home and land value(s). We will expect this year a higher rate due to the fact that Melbourne house prices are sky rocketing.
We as home owners do not have any income from our property so we do not see why the council uses our home/land value (which in our view in often over valued) as basis for the new council rates. The increase in the value of our home is often caused by investors, shortage of housing etc. We did raise this issue with our council often but to no avail. We would like to see a cap on how much the council can charge especially for people in retirement.
One way the council can determine the amount of rate is to look at our income from our investment(s) the same way the government is taxing working people. The more you earn the more you pay tax.
If property values in your council area increase by 10%, your rates will not go up that much as Councils are only allowed to raise overall rate revenue to match their expenditure for the coming year. Also in Victoria the overall rate revenue cap is 2%. Individual property rates can increase by more than 2%, but they would have to have a spike in value caused by redevelopment of your property or rezoning of your land. Rates are formulated under the Victorian Local Government Act and property is valued in accordance with the Valuation of Land Act. If you have a pensioner concession card you are entitled to a rebate each year.
Hi there,
My mum’s getting age pension on this April. What should my mom have to do to get pension. She is already in myGov , should she inform to center link or she get automatically?
Regards
Hi Madhu. You don’t get the Age Pension automatically, you need to apply. Also Centrelink don’t backdate payments to when you were first eligible to apply but rather to when a completed application is lodged. Many people delay, or think it is automatic, and miss out on some of their entitlements.
Hi Madhu. You don’t get the Age Pension automatically, you need to apply. Also Centrelink don’t backdate payments to when you were first eligible to apply but rather to when a completed application is lodged. Many people delay, or think it is automatic, and miss out on some of their entitlements.
I am 66in August this year when am I eligible for pension and when do I apply, as I am intending to get help.
Hi Shirley. Thanks for your question. The Age Pension Age increases to 66 1/2 from 1 July this year. This will affect you as you turn 66 in August and therefore won’t be eligible until you are 66 1/2 in February 2022. You can however submit an application up to 13 weeks before that so you could submit your application in November this year. You can even start your online application with us well before that so it can all be completed and ready to submit as soon as you are eligible.
I recieved letter cancelling seniors card and part pension as I missed a fortnightly report in November 2020 I have since sent several letters via MY GoV and have phoned approx eight times and have had no response. End of August phoned again to be advised after approx 40mins on phone that my claim was still being assessed after 8 months can you advise who I can contact for answer as to when my card will be reinstated as for part pension I did not ask for this as at 69years old I am still semi working so as not to rely on Gov handouts
Hi Hugh, I’m sorry to hear of the delays and stress Centrelink are causing. You can call their complaints line on 1800 132 468 between 8am-5pm Monday to Friday.