Apart from super what are your considerations for retirement?
When you start thinking about retirement, money is probably the number one thing on your mind. You may ask: Am I going to have enough saved up? Will it help me cover the expenses that I will have? Will it support the lifestyle that I want to live? Am I going to have any money left over to leave to my children?
Those are all normal questions to ask and to need answers to. However, did you know there are other considerations for retirement outside of the money you save in your super?
You expect, and everyone is provided at least the minimal amount of healthcare required. But what if things come up that fall out of the standard of care that everyone is entitled to? For example, if you want to choose your own doctor, have an elective surgery, or immediate access to care, these things are not guaranteed under universal healthcare. There’s now a big push to create and deliver long term healthcare solutions for retirees that will work based on a person’s preferences.
During retirement, there may be a need for aged care either at home or in a facility. The costs associated with aged care are very high and on average run around nearly $14,000 a year for someone who is a self-funded retiree and who needs at home care. If facility care is needed, the costs soar to around $43,000 per year.
There’s been a trend growing over recent years regarding Australians using the equity in their homes during retirement to help alleviate some of their costs or add to their retirement cash flow. Home equity can be a useful resource to draw upon when needed to cover those unexpected or overly-priced expenses.
As you can see, when it comes to retirement, your planning must go beyond your superannuation. There are many different factors and expenses to take into account, but there are also different options that you may have to cover these expenses outside of your super. To make the most out of your retirement planning, make sure to speak to a qualified and professional financial planner to come up with a retirement solution that meets your needs.