Financial Strategies in Retirement

What are some strategies when in retirement?

When retired, people have to strike the right balance between how much to spend on lifestyle now and how much to save for the future.

Centrelink's Financial Information Service can give you free information about your options at retirement. You don't need to be a Centrelink client to benefit from this service.

However, the Age Pension does not provide a high standard of living. Therefore, people need to decide how quickly they draw down on superannuation and other savings.

One strategy that provides extra income is the Reverse Mortgage accessing equity in your home. With this product, while you continue to live in your home a bank will provide either lump sum or regular payments, the amount based on your age.

With a Reverse Mortgage, you don't need to repay the loan while you continue to live in the home. Refer to the ASIC website for more information.

Check out the ASIC Reverse Mortgage calculator.

Reverse Mortgages should be used with caution. There are downsides to drawing upon your equity, principally that the inheritance you may be planning to leave to beneficiaries is being reduced more than you thought. Read the ASIC guide for more information.

Noll Moriarty is accredited by Senior Australians Equity Release Association of Lenders (SEQUAL) to provide Reverse Mortgage guidance.