Life considerations in retirement

By David Koch

12 September 2024

Retirement is one of life's great crossroads. It is an exciting and challenging period where most people take stock of their lives.

For some retirement is a joy, for others it is a time of worry. So here are some good tips on how to make the change as smooth as possible and hopefully give you a springboard to a terrific retirement.

1) Don’t panic

The decisions you make will affect the rest of your life, so relax and take your time. Some Australians may retire with a sizeable amount of money they’ve never seen before. But remember it will have to last you the rest of your life which could be another 30 or 40 years. It’s a big decision.

2) Seek Financial Advice

Superannuation can be challenging and complicated, and with the tax treatment so individual you should consider seeking advice before making any decisions.

Best to be prepared and share with your adviser the lifestyle and income level you wish to achieve. Decide what you want your money to do for you before deciding what to do with your money.

3) Pay down debt

The worst thing that can happen to a retiree is to be over your head in debt and not have a regular salary coming in. Ask your adviser what sort of money should be used to pay off debt… savings, redundancy, benefits, or superannuation.

• Decide where you want to live. This decision has many implications for both lifestyle and financial future.
• Don't over-invest in your home at the expense of income. So many retirees become asset-rich and cash-poor^ because they’ve tied up so much in their own house.
• Check land values to make sure rates will not be an unforeseen problem and, in a growing number of cases, whether land tax will cripple you financially.
• Consider the emotional stress of moving immediately and maybe put it off for a year or so until you are settled.

4) Get a comprehensive health check

A comprehensive health check assesses your overall health and detects any early signs of health issues. It’s amazing how many people retire and then suffer health problems as their lifestyle changes. So don’t underestimate the need to keep healthy, fit and active.

5) Make major lifestyle decisions

Know where you stand with major expenditures in retirement such as holidays or a new car. Also pick up some outside interests or hobbies, otherwise you will drive your spouse batty. It can be an enormous step to go from full-time work to nothing. So, start planning early on how you’ll fill the time to keep the brain and body active.

6) Discuss it with your partner

Talk to your partner who will also be affected by your decision. They may have some valuable advice to contribute, and your partner deserves to know what you are planning. After all, your relationship should be just as exciting and fulfilling in retirement as it was when you were working.

7) Purposeful work

Almost 50 percent* of retirees expect to do some sort of work, if only on a part-time voluntary basis. If you do intend to keep working consider work that fits your values, skills, interests, and personality type.

8) Love and relationships

For some women, who have retired or have been at home for a few years, may have concerns about their partner retiring to ‘run the home like they run the office’. This transition time needs patience, understanding and communication.

9) Social

Men are traditionally poor at maintaining relationships outside of the workplace, so in retirement, cultivating new friends is often a challenge. A proactive strategy for men is to start developing some personal relationships before they retire.

10) Hobbies, interests and creativity

Build a plan that allows you to experience many different activities – variety really is the spice of life.

11) Intellectual growth and learning

At long last you can learn how to make that dining room table, do up the antique bike, learn what your computer can really do, or even go to university.

12) Join something

This is a combination of all the above, but there are organisations out there covering just about anything and everything you have ever thought of. So, make the most of it and join something new.