4. Check your superannuation Helen says one of the advantages of being an older Australian is that you may have access to super, which you could recycle to rearrange your finances. 5. Weigh up investment properties Some people hang onto investment properties if their cash flow is positive as that’s a handy source of income. “But when you’re under mortgage stress for your main residence, it’s possibly not worth it,” says property investment strategist and Aus Property Professionals managing director Lloyd Edge. Depending on your age, he adds,
FAST FACTS: FIGHTING RISING COSTS The Australian Seniors Series: Super Savvy Report 2023 finds…
73% of over 50s are cutting down on everyday expenses
18% are picking up extra work
18% are pushing out retirement
To see the full results of The Australian Seniors Series: Super Savvy Report 2023, go to seniors.com.au and search ‘super survey’.
have a higher likelihood of their partner dying, marital breakdown and sickness. “These are all factors you have to take into consideration when you’re working out strategies
it might be worth considering all mortgage commitments.
to help with your mortgage debt,” says Professor ViforJ.
6. Look at downsizing Selling your home and moving somewhere smaller and cheaper could help free up equity in your existing home to pay off the mortgage and buy another home, and also put more money into super. Some people choose smaller houses, others go to townhouses or apartments. “But it can be hard to relocate,” says Professor Bruce Judd from the University of NSW’s City Futures Research Centre. “Do it earlier rather than later.” 7. Consider a family move For some, moving in with your family might be a last resort; for others it could be delightful. Some people will welcome grandparents’ help with their children, and some older Australians will adore the chance to be closer to them. “But this can be hard for people,” says Adrian. “We’re seeing this happen a lot, and it can be tough when it’s more a necessity than a choice.”
10. Plan as early as possible Marisa, who sits on the advisory board for retirement think tank the Conexus Institute, says the group’s experience is that a third of people retire with a mortgage these days, and a third also don’t choose when they retire – the decision is made for them through redundancy or ill health. “That’s why everyone needs to plan early and if they haven’t, then they should start planning as quickly as possible now!” she says. 11. Always seek advice Before doing anything dramatic, it’s recommended to seek the advice of a relevant expert, such as a financial planner or your accountant.
“It’s about making choices, as small expenses can really add up.”
HELEN BAKER Financial adviser
8. Find part-time or casual work Over the past two years the Australian government has removed barriers for aged pensioners who wish to work, by making sure those who choose to re-enter the workforce, or increase their work hours, can easily access payments again if needed. 9. Factor in the unexpected However you might decide to ease your mortgage stress, make sure you think of the risks. Older Australians
Protect your family’s financial future with life insurance from Australian Seniors. Call 1300 050 502 or go to seniors.com.au
This is general information. You should seek appropriate professional advice specific to your circumstances.
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DARE SEPTEMBER-OCTOBER 2023
SENIORS.COM.AU
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