Bec Wilson's Blog, page 14

How downsizing could boost your super as you approach retirement

Every Sunday I write a column that is published in the money section of The Age, The Sydney Morning Herald, Brisbane Times and WA Today. This week’s column can be read in full here. I usually include it on my email later in the week, but today I’m bringing it to you on the day it’s published. A little experiment. Tell me if you like it and I’ll keep doing it. Enjoy!

The traditional idea of staying in a family-sized home until we die is finally evolving. With a little nudge from the Government’s enticing downsizer incentive which was boosted this year, forward-thinking pre- and post-retirees are reassessing their homes with fresh optimism, and wondering if they are indeed the keys to bolstering their super balances. And they might well be.

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The numbers tell us it’s time. Nearly 60,000 Australians have downsized and poured more than $14.5 billion into their superannuation funds using the downsizer incentive in the last five years according to the ATO. And when they downsize, they not only reap the financial rewards, they also unlock a wealth of potential lifestyle benefits that can come from moving into areas better suited to their looming retirement years.

Recent ABS Census data indicates that between 75 and 80 percent of pre-retirees and retirees own their own homes in this country. Yet, the average superannuation balance sits somewhere between $150,000 and $200,000 among people aged 55-74, a figure that falls short of meeting the expectations for a comfortable retirement. And the mean housing price in Australia stands tall, at a formidable $912,000 in the June quarter.

The government recognises the imbalance in these numbers, and they’ve well and truly done what they can with the downsizer incentive to try and correct it.

The downsizer incentive encourages people to sell the family home, provided they have owned it for more than ten years, and invest up to $300,000 per person, or $600,000 per couple into superannuation, tax-free.

It was launched five years ago, but was slow to find appeal. At first, it was available only to people over 65, then, from 2020 to over-60s, and now, on January 1, 2023, they made it more accessible again, dropping the qualifying age to 55, the perfect window for retirement planning. And at 55 I think they’ve found the sweet spot for retirement lifestyle-seekers wanting to rid themselves of the shackles of the big home.

So if you are contemplating downsizing, here’s a few important things you might want to consider:

Understand your timing windows. The downsizer incentive is only available to you after the age of 55. And, even then, it is not available to you unless you’ve owned your home for at least ten years, calculated from the date of settlement. So timing it will be important for some people. If you can see the window of opportunity a few years ahead of you, keep a watch on the signposts and don’t be tempted to sell early, unless you’ve calculated the opportunity cost.

This article continues with lots more tips and insight into the downsizer incentive. Read it here on the Sydney Morning Herald. It’s free to access the article - you may need to register.

And just in case you missed it, here’s a link to this week’s Epic Retirement Newsletter.

How to Have an Epic Retirement is the ultimate guidebook for modern retirees. It is grounded in my own widespread research on modern retirement, and draws on my prior ten years as the CEO of Starts at 60 and Travel at 60 (before I stepped away to pursue my next career in retirement education). It also draws on the work of the leading thinkers in the longevity, health, happiness, purpose and modern ageing spaces and incorporates many interviews with people who have navigated the sometimes challenging path into retirement.

I hope you’ve had a lovely weekend!

Many thanks! Bec Wilson

Author, columnist, retirement educator, and keynote speaker

Thanks for reading Epic Retirement! Subscribe for free to receive new posts and support my work.

Knowledge is power as you approach and enter retirement

In this week’s edition

Article: Knowledge is power as you approach and enter retirement

From Bec’s Desk this week

SMH/Age article: Forget FOMO: How to grapple with the ‘fear of running out’ in retirement

Sent in: A lovely short note sent to me by email

Knowledge is power as you approach and enter retirement

‘Knowledge is power.’ One of the guest speakers said that to a room full of older Australians at the Queensland Seniors Forum this week, and it could not be a more important message. 

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And more importantly, knowledge is power as you approach and enter retirement, traversing so many unknown topics for the first time in your life. But knowledge is hard to build up any way other than through learned experiences - AKA - the hard way! And I think you can learn a few things without the mistakes, if you want to.

So today I’ve decided to offer you some greater power, by listing off some of the knowledge and titbits I think you should make sure you have as you approach retirement. 

Your superannuation: learn how your financial foundations work! 

Understanding superannuation is paramount. Many people wake up somewhere in their mid-50s or even 60s and suddenly realise they need to pay attention to their superannuation. And while it’s not too late, it’s certainly not the best time to start!

To grow into a really big (or even moderate) nest egg, your superannuation needs you to deposit money into it as early in life as you can afford to; ensure it is invested well at every stage of your life; and give it time to grow. Compound investing IS the key to superannuation growth! 

But the knowledge you need goes much further. Take the time to grasp the concessional and non-concessional contributions, the downsizing incentive, and your options for risk taking and investment. Think about how the accumulation phase works, and how the retirement phase works - because they are very different.

And, ask your superfund about the tools they provide to help you understand your money, the retirement education they can offer you, and the financial advice options they have for their members. Remember - knowledge is power! If your head’s in the sand - you have no power! (Tell ‘em I sent you - many are waiting for your call!)

The Age Pension: Don’t be too proud to learn about the age pension

62% of Australians over 67 access some form of age pension. It boggles me that people under that age think the pension is only for a minority group. The age pension’s eligibility is calculated by a combination of the assets test and the income test. And, if you would like to understand whether you can access up to nearly $43,000 per year as a couple or $28,500 per year as a single person from the age of 67, PLUS a whole raft of pension benefits, like the pension concession card, rent assistance, and more - take the time to learn.

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It’s also worth knowing that if you aren’t eligible for the age pension, you might find you are eligible for the Commonwealth Seniors Health Card (CSHC). 

If you don't dive in and learn, you’ll never know. Or, maybe you’ll find yourself missing out on months of years of supplementary income you might have been able to enjoy. Because they don’t backpay if you apply months or years later. 

Your health: Learn how to monitor your body’s key health markers

You need to learn how your body really works in the second half of life if you want to slow the undesirable parts of ageing health decline. Knowledge of what to check and watch for  is critical.  So, take the time to learn and, remember that as Australians with a medicare card, you have access to an extraordinary number of high quality preventive health tests at a very low and sometimes NO cost to you. These could allow you to catch cancer, dementia, heart disease or diabetes long before they cause irreparable damage to your body, and shorten your healthspan earlier than necessary. Some of the things you need to know (and are covered in detail in the book) include: 

Act on inflammation in your body, it’s one of the biggest risk factors for the diseases of ageing like hypertension, dementia, and even cancer. 

Get your hearing checked if it’s waning - it’s a huge risk for future dementia issues. 

Worry about your waistline - it’s a predictor of premature death. 

Look out for the warning signs of metabolic syndrome that often leads to diabetes. 

Monitor your blood pressure and cholesterol - the cause of coronary heart disease among many other problems. 

Get your mammograms for women, PSA blood tests for men, and everyone, please take your bowel cancer screening test when it comes in the mail. Cancer sux!

Don’t forget to check for skin cancer regularly, and

Keep your teeth in good condition. Poor dental hygiene can lead to gum disease, which is associated with health issues like diabetes, heart disease, and respiratory infections.

And just for fun - learn how to get great deals on travel

When you retire, you have more time to travel. But most people are trying to stretch their dollars as far as they will go. So I love to tell you the tricks of the trade, so you can, get yourself far better deals - if you want to go to the effort.

But, I’d be crazy if I gave these ones away in a free newsletter.  You’ll have to buy yourself a copy of ‘How to Have an Epic Retirement’ for these. You’ll find them on page 277-281. Yep - pages of ways to get great deals on travel.

Of course, there’s heaps of other areas where you will benefit from greater knowledge. Think about these if you get some time. All the items above, and below are covered in my book too.

Budgeting for retirement - I think this one is pretty important. So important, that when you buy the book, I give you a free excel budgeting template.

Travelling solo - About 33% of retirees are doin’ it solo, so why not learn a few tips and tricks about how to find good options.

Preparing your will, estate plan and Enduring Power of Attorney - they’re not something that any of us should put off to the future. But they’re not necessarily expensive and complex processes either.

Banking as you approach and enter retirement - banks have a very different attitude to people after they no longer receive a paycheck! Prepare yourself.

And lots more! Get your copy here.

From Bec’s Desk

It’s been a busy week. I’ve been filming our pre-retirement education course, recording the new podcast that’s coming very soon, and learning my TEDx talk (I’m still struggling with memorisation if you have tips!) - and that is keeping me out of trouble.

Last weekend I did a big article in The Sydney Morning Herald and The Age on the fear of running out of money before we retire. It’s more common than you think and I’ve got some tips if you feel it too. Read it here.

I spent all day Thursday as the MC of the South East Queensland Seniors Forum, the largest event of its kind that I can remember the government running in recent years. Run by the Department of Child Safety, Seniors and Disability Services in partnership with the Committee on the Ageing (COTA) it was a wonderful opportunity to share information from thought leaders with the 200+ seniors that were in the room and more than 500 attending online, and ask them what they thought about key issues. And it was great to see the Minister, the Hon. Craig Crawford MP and many from his department there all day as the event drivers, keenly and enthusiastically making it happen. 

Snaps from the SEQ Seniors Forum Lto R: Bernard Salt; some of the speakers & special guests; The Hon Craig Crawford MP, Minister for Child Safety, Seniors & Disability Services; a quote that inspired us all; A snap of the room

Well done to everyone involved and everyone who attended. It’s great to see our Queensland Government listening to the issues of modern ageing, and looking for ways to respond at the coalface. I can only hope other states are taking Seniors and our modern ageing issues this seriously.

I’m doing more and more guest speaking and MCing of events that serve people in the second half of life. So reach out if you’re feeling inspired for an upcoming event. I love doing it.

Read on, it’s a shorter newsletter this week. Hope you enjoy it!. I really njoy reading your emails. Just reply to this email and I’ll get your note in my inbox. Say hi! Tell me your thoughts and ideas too.

And, don’t forget to leave a comment and a like on the post here:

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Please, have a wonderful week and make it epic!

Many thanks! Bec Wilson

Author, columnist, retirement educator, and keynote speaker

Forget FOMO: How to grapple with the ‘fear of running out’ in retirement

This article first appeared in the Sydney Morning Herald, The Age, Brisbane Times and WA Today on Sunday 1st October 2023. Read it here.

Are you a sufferer of one of the most prevalent retirement-related diseases in the country? Have you got FORO? Despite the talk of exciting and ambitious retirements, the “fear of running out” is a big issue for pre-retirees and retirees.

In fact, if you have it, you are among the majority of people over 55 who are trying to balance the rising cost of living and anxiety about hopeful visions of “the good life”. A poll from my Facebook group this week showed more than 60 per cent of people approaching and in retirement fear running out of money.

As a nation, we’ve been contributing to super for 31 years. And despite this, the reality is, most Australians only get their act together on their superannuation growth strategies in their 50s and 60s.

Before this, they are busy raising their kids and paying off their mortgages and have little left over for long-term savings. And that means many people in the next decade will be scrambling to put together enough super to live comfortably in their retirement – despite the trillions of dollars in the retirement system.

The median superannuation balance of people aged between 55 and 74 in Australia currently sits somewhere between $150,000 and $200,000, well below the amount that the Australian Superannuation Funds Association (ASFA) says will afford you a comfortable retirement.

A comfortable retirement, according to ASFA requires you to have $595,000 for singles and $690,000 for couples in your superannuation, as well as access to a part pension. And this assumes you own your own home outright. So if you are one of the average pre-or-post retirees who simply don’t have this much in super, how do you manage your FORO?

I’ve watched many retirees navigate life with this fear, and live full and energetic lives.

There’s no easy answer, but I’ve put together some practical steps you can take so you can at least reason with your fears. Read it on the Sydney Morning Herald here. It’s a free to access article (you may need to register).

How to Have an Epic Retirement is the ultimate guidebook for modern retirees. It is grounded in my own widespread research on modern retirement, and draws on my prior ten years as the CEO of Starts at 60 and Travel at 60 (before I stepped away to pursue my next career in retirement education). It also draws on the work of the leading thinkers in the longevity, health, happiness, purpose and modern ageing spaces and incorporates many interviews with people who have navigated the sometimes challenging path into retirement.

Sent in…

This little titbit arrived in my inbox this week from Jenny in our community. She just wanted to share the inspirational quote from a book she’s reading. It’s a good one. Enjoy!

“…for life transitions to become successful rites of passage, they require three steps: letting go, liminal time, and new beginnings. Letting go refers to leaving behind past roles, attitudes, regrets, and identities that no longer serve our development so that we can move forward. Liminal time, or the neutral zone, refers to the fallow period between identities in which we feel lost, formless, empty, and afraid. It’s a bit like a chrysalis—no longer caterpillar, not yet butterfly. And it may include deep grieving for all that has been lost. New beginnings refers to the emergence of a new sense of self, passion, purpose, and vision—and, I would add, a potential next stage of awareness.” 
- The Inner Work of Age by Connie Zweig

Intermittent fasting: it could be the ultimate modern ageing lifehack

In this week’s newsletter:

Article: Intermittent fasting: it could be the ultimate modern ageing lifehack

From Becs Desk this week

Short bite: Cashless banking and embracing our digital wallets

Short bite: A government pension boost for working retirees

SMH/The Age: How to improve your financial confidence before you retire

Intermittent fasting: it could be the ultimate modern ageing lifehack

As we look to age better than the average person and have an epic retirement, most of us here are hungrily seeking ways to support our physical and mental health and wellbeing. I know I am. 

Last week at a keynote presentation I did, the community got stuck on one big topic in Q&A. They wanted to know more about intermittent fasting, what it is and how it works on the body to slow your biological ageing process, improve your metabolism, reduce your insulin resistance and sharpen your mind.

So today I’m taking a deep dive, to talk about what it is, how it works in maturing bodies, exploring the science behind it and how you incorporate it into your life. Of course you know I’m not a doctor, but I do take time to read the scientific papers and understand things deeply from the perspective of those of us in the second half of our lives. So let’s dive in. 

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What is Intermittent fasting? 

Intermittent fasting (IF) is an eating pattern that alternates between periods of eating (known as feeding windows) and periods of fasting (known as fasting windows). It doesn't prescribe specific foods to eat, but instead it focuses on when to eat. Common methods include the 16/8 method (16 hours fasting, 8-hour eating window), the 5:2 method (regular eating for 5 days, restricted calories for 2 days), or alternate-day fasting. During the fasting window, people usually restrict themselves to consuming only non-caloric beverages like water, herbal tea, or black coffee to stay hydrated.

Some experts say that intermittent fasting is less of a diet and more of a way of life. And that if done correctly, you can keep eating all the things you love, just by doing so within the feeding windows. 

What does intermittent fasting do for more maturing bodies?

Intermittent fasting has been shown by scientists to be particularly beneficial to people as they get older, having a huge impact on both metabolic health and body weight; insulin sensitivity; cognitive health and cellular ageing, some of the most important pillars of our healthspan. So it makes an awful lot of sense to give it a second look. 

Metabolic health and weight: As we age, our metabolism tends to slow down, making it harder to maintain a healthy weight. Intermittent fasting has been shown to help boost the metabolism, making it easier to shed those pesky extra kilos or maintain a healthy weight.

Insulin sensitivity and blood sugar regulation: Intermittent fasting can improve insulin sensitivity and help regulate your blood sugar levels. This is especially important for older people who are dealing insulin resistance or diabetes, one of the big diseases of ageing today, and likely helping with blood sugar management.

Cellular health and longevity: Intermittent fasting triggers a process called autophagy, where the body cleans out damaged cells and regenerates new ones. This cellular rejuvenation is said by scientists in the modern ageing space to contribute to increased longevity and a healthier, more youthful body. It’s not proven on humans yet - but they’re presenting plenty of evidence in cells and mammals. 

Brain health and cognitive function: It’s pretty wild to consider that the benefits of intermittent fasting extend all the way to brain function. By stimulating the production of brain-derived neurotrophic factor (BDNF), it  is believed to support mental clarity and potentially reduce the risk of neurodegenerative disorders, a crucial concern for many of us in the second half of life. In addition to this, the ketones produced by the use of stored fat for energy during intermittent fasting can support brain function and could contribute to the mental clarity experienced by people practising it. 

Why are scientists favouring it? 

Scientists are favouring intermittent fasting due to a growing body of research indicating its potential health benefits. Studies suggest that intermittent fasting can lead to various metabolic improvements, including reduced risk factors for chronic diseases such as heart disease, diabetes, and obesity. Additionally, the concept of autophagy and cellular rejuvenation, where the body cleanses and regenerates cells during fasting, is gaining attention for its potential anti-aging effects. It’s all pretty new stuff scientifically, but the evidence certainly is there. 

How can you bring intermittent fasting into your life? 

Intermittent fasting is certainly a change in patterns for most people so it is wise to allow your body to adapt gradually. Most people start slowly, simply by restricting themselves to a 12 hour fasting window, which can be done by finishing your evening meal before 7pm and fasting until 7am. Then, as their body adapts they look to extend the fasting window, progressively increasing it to 14 or 16 hours. It’s worth experimenting to find a duration of fasting that feels sustainable. 

For those who do the 14/10 or 16/8 fasts, they often finish their evening meals around 6pm, and fast until 8am or 10am in the morning. 

It’s important to maintain your hydration during the fasting windows, which is usually restricted to black coffee, herbal teas and water. Some experts say that they take their vitamins and supplements when they are in the fasting window to maintain their nutrients too. 

Of course, I don't need to tell you that the quality of food you eat during the feeding windows is actually very important, with everyone in agreement that you should focus on a well-rounded, nutritious diet to maximise the benefits of intermittent fasting. 

If you take medications or under the supervision of a doctor for any illness - please make sure you ask them more about it.

PS. I have a whole section on health and it includes and even deeper dive into intermittent fasting in the book - How to Have an Epic Retirement. Buy it here.

From Bec’s Desk

There is so much ‘epic stuff’ going on! The books are back in stock in retailers and bless you for your wonderful word of mouth - they are walking out of bookstores quickly again. People are sending me notes saying they are buying them for friends, and advisers are sending me notes saying they are buying them for their clients! All I can say is … thanks! Authors dont really make money from books, but boy do we get joy out of people reading them and helping people grow. If you want to buy a batch in bulk or have me send you some signed copies - message me.

We’re into the recording of the epic retirement flagship pre-retirement education program - a big process to build a top-notch course for Australians approaching retirement. So watch this space, and register here if you want more info as it comes to life later in the year. And if you find yourself reading this from a superfund role - help us find the right people to bring it to your members at scale - seriously! People need the help.

And the NEW podcast I can’t tell you about yet is getting closer and closer to launch. Hold - your - breath!

I’m keynoting and guest speaking on the topics around how to have an epic retirement and keen to do more. So if you have an organised event that is looking for a robust conversation about any of the stages of retirement, I’m here!

I’m also rehearsing my first TEDx talk to be held in Brisbane next month (It is so hard to memorise 10 minutes of monologue! - Send me your tips!)

Over on Instagram this week I dropped 5 helpful little lessons to help you prepare for retirement. Check them out here. And don’t forget to follow me!

If you haven’t already, I encourage you to get a copy of the book, How to Have an Epic Retirement. Thousands and thousands are now in circulation. And I’m always looking for community events to pop in and chat, or sign some at, so if you run a club, library or a community and want me to come and talk about the six pillars of an epic retirement - reach out! This is my happy place!

And now, read on to hear about cashless banking, the pension work bonus changes this week and my Sydney Morning Herald/The Age article from last Sunday.

Do you have a question to ask or a story that you think we should tell? Email me at bec@epicretirement.net. Or, simply send me a photo of you with the book and tell me one of your retirement stories! (Thanks to everyone who did this last week - each one of you makes me smile!)

You can leave a comment and a like on the post here:

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Whatever you do, have a wonderful week and make it epic!

Many thanks! Bec Wilson

Author, columnist, retirement educator, and keynote speaker

Short bites worth reading

In wider news, there was two short bites worth talking about this week I think.

Cashless banking and embracing our digital wallets

As you would have seen a few weeks ago that Macquarie Bank has made the first move to axe cash from banking and they plan to do so over the next 12-18 months. No doubt other banks will be gagging at the bit to follow knowing how much money they’ll save when they eventually close branches. So this week I penned an interesting piece for National Seniors called “How to cope without cash” that you might be interested in passing on to your less digitally-literate friends or older relatives who are avoiding the move to cashless banking. We need to bring our elders on this journey safely aware of the risks AND the benefits! And if you aren’t friends with your digital wallet - read it here.

Afterwards I even ended up in a friendly debate on Facebook Messenger with a passionate lady in her 80s, that had her admit by the end that it was probably time to finally and reluctantly set up her digital wallet. 💪🏼 I really hope those who scaremonger seniors into being afraid of digital banking start to get called out - because the risk of people being left behind is real now. Help your elders and friends get across the gap! Well done to National Seniors for taking up this fight.

A government pension boost for working retirees

If you want to work - the government wants you to!

The government has announced that the temporary lift to the Work Bonus will be made permanent. This increase of $4000 was originally offered in 2022/23 as cost of living rises and workforce shortages bit hard, to encourage pensioners to work, and allow them to earn up to $11,800 per year instead of $7,800 before they lose access to the full pension. The increase, which was set to end on 31st December, will be permanently installed as long as the legislation passes! This is implemented as a $4000 credit in the Work Bonus income bank, and an increase of $300 per fortnight to this balance. Any unused amount of the fortnightly $300 Work Bonus will accumulate in the Work Bonus income bank, up to the maximum amount.

AND

The nil rate period will be doubled, from 6 to 12 weeks, so people who start earning whilst on the pension will have twice as long to enjoy inome from their job before they lose access to their benefits. The earnings during this period are not counted towards the income test for the Age Pension, Disability Support Pension, or Carer Payment.

How to improve your financial confidence before you retire

This article first appeared in the Sydney Morning Herald, The Age, Brisbane Times and WA Today on Sunday 24th September 2023. Read it here.

I came across some data last week that should make those approaching retirement who aren’t feeling confident, feel very, very normal. It should also frighten the socks off the Australian government and most superannuation funds that are meant to help people navigate this stage.

According to a research study conducted with over-50s for AMP, 75 per cent of people find our retirement system complex – and let’s face it, it is! Nonetheless, only one in four people over 50 years of age have sought financial advice for retirement planning.

Seventy per cent of people don’t know what an account-based pension is (the most common income stream product offered within superannuation post-retirement to give you income monthly, quarterly or annually) and 40 per cent of people don’t know whether they would be eligible for the age pension.

The best thing I think I can do with these insights is help you understand how you can work on your financial confidence if you are approaching or in retirement. And when I say that, I don’t mean “work on your wealth”.

The fact is, you don’t need to be wealthy to have a great retirement. In fact, the people I know who have the most incredible retirements are not necessarily rich at all. But they are financially confident, understanding how much money they can afford to live on, and what they can afford to do with the money they have over the lifetime they have ahead of them.

But if you are approaching retirement and like most Australians in this survey, not feeling all that confident right now – how do you get there?

1. Educate yourself: make financial literacy for retirement your focus. Begin with the basics. Get your hands on books, online courses and newsletters, and attend workshops that provide you with fundamental knowledge about personal finance for the retirement phase of your life. Ask your superannuation fund if they offer any basic retirement literacy education too.

Understand how the systems designed to support retirees work – superannuation in the accumulation and retirement phases, the age pension and seniors concessions. And understand how your home plays a role in your retirement finances too.

Once you know how the systems work, you can better manipulate your goals to leverage them. And don’t be afraid if you don’t understand them now. You are clearly in the majority of Aussies over 50.

2. Get a grip on your age pension eligibility. Sixty-two per cent of Australians over the age of 67 draw on the age pension in one way or another. And 50 per cent in this age group depend on it. So don’t be afraid of taking a good hard look at how the pension works. You might not be aware that full pensioners can access an annual income right now of $42,988.40 for a couple combined and $28,514.20 for single people.

This article continues on The Sydney Morning Herald. Read the rest here.

Have you got your copy of How to Have an Epic Retirement?

How to Have an Epic Retirement is the ultimate guidebook for modern retirees. It is grounded in my own widespread research on modern retirement, and draws on my prior ten years as the CEO of Starts at 60 and Travel at 60 (before I stepped away to pursue my next career in retirement education). It also draws on the work of the leading thinkers in the longevity, health, happiness, purpose and modern ageing spaces and incorporates many interviews with people who have navigated the sometimes challenging path into retirement.

Buy now

I am incredibly proud of the response to the book so far. It has sold out online in Amazon and Booktopia several times and run the warehouse out completely. It has also reached #4 on Booktopia’s National Bestseller list, #8 on Dymocks Business & Finance Books list and #1 on Amazon Australia in the category of ‘Retirement’. And, it has been in very short supply in bookstores throughout Australia in the lead up to Fathers’ Day after spending 5 weeks as the #1 bestselling self-improvement book by an Australia author.

Thanks for reading Epic Retirement! Subscribe for free to receive new posts and support my work.

How to improve your financial confidence before you retire

This article first appeared in the Sydney Morning Herald, The Age, Brisbane Times and WA Today on Sunday 24th September 2023. Read it here.

I came across some data last week that should make those approaching retirement who aren’t feeling confident, feel very, very normal. It should also frighten the socks off the Australian government and most superannuation funds that are meant to help people navigate this stage.

According to a research study conducted with over-50s for AMP, 75 per cent of people find our retirement system complex – and let’s face it, it is! Nonetheless, only one in four people over 50 years of age have sought financial advice for retirement planning.

Seventy per cent of people don’t know what an account-based pension is (the most common income stream product offered within superannuation post-retirement to give you income monthly, quarterly or annually) and 40 per cent of people don’t know whether they would be eligible for the age pension.

The best thing I think I can do with these insights is help you understand how you can work on your financial confidence if you are approaching or in retirement. And when I say that, I don’t mean “work on your wealth”.

The fact is, you don’t need to be wealthy to have a great retirement. In fact, the people I know who have the most incredible retirements are not necessarily rich at all. But they are financially confident, understanding how much money they can afford to live on, and what they can afford to do with the money they have over the lifetime they have ahead of them.

But if you are approaching retirement and like most Australians in this survey, not feeling all that confident right now – how do you get there?

1. Educate yourself: make financial literacy for retirement your focus. Begin with the basics. Get your hands on books, online courses and newsletters, and attend workshops that provide you with fundamental knowledge about personal finance for the retirement phase of your life. Ask your superannuation fund if they offer any basic retirement literacy education too.

Understand how the systems designed to support retirees work – superannuation in the accumulation and retirement phases, the age pension and seniors concessions. And understand how your home plays a role in your retirement finances too.

Once you know how the systems work, you can better manipulate your goals to leverage them. And don’t be afraid if you don’t understand them now. You are clearly in the majority of Aussies over 50.

2. Get a grip on your age pension eligibility. Sixty-two per cent of Australians over the age of 67 draw on the age pension in one way or another. And 50 per cent in this age group depend on it. So don’t be afraid of taking a good hard look at how the pension works. You might not be aware that full pensioners can access an annual income right now of $42,988.40 for a couple combined and $28,514.20 for single people.

Building financial confidence before retirement is not about the size of your superannuation fund balance but your understanding of your financial situation.

Do some simple calculations of your assets and potential income in retirement to try to understand whether you will be eligible, and whether it will be for a full pension, a part pension, or simply for the Commonwealth Seniors Health Card (CHSC). Make sure you think about it early in the process as this can change many of your other financial strategies.

This article continues on The Sydney Morning Herald. Read the rest here.

Seven useful things to know before you retire

In this week’s Epic Retirement newsletter we have:

Article: Seven useful things to know before you retire

From Bec’s Desk: A personal message from me!

SMH/Age Money Article: Not retirement ready yet? Cath up strategies for late starters

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How to Have an Epic Retirement is now back in stock

How to Have an Epic Retirement is the ultimate guidebook for modern retirees. It is grounded in my own widespread research on modern retirement, and draws on my prior ten years as the CEO of Starts at 60 and Travel at 60 (before I stepped away to pursue my next career in retirement education). It also draws on the work of the leading thinkers in the longevity, health, happiness, purpose and modern ageing spaces and incorporates many interviews with people who have navigated the sometimes challenging path into retirement.

Buy now

I am incredibly proud of the response to the book so far. It has sold out online in Amazon and Booktopia several times and run the warehouse out completely. It has also reached #4 on Booktopia’s National Bestseller list, #8 on Dymocks Business & Finance Books list and #1 on Amazon Australia in the category of ‘Retirement’. And, it has been in very short supply in bookstores throughout Australia in the lead up to Fathers’ Day after spending 5 weeks as the #1 bestselling self-improvement book by an Australia author.

Thanks for reading Epic Retirement! Subscribe for free to receive new posts and support my work.

Seven useful things to know before you retire

Retirement is a significant life transition, and one you can and should prepare thoroughly for, as you all know. But many people don't have a good understanding of of all the things they should prepare. And I tend to think it’s a bit like the period before you have your first child, when everyone holds back from giving you ‘their advice’ because it is such a deeply personal stage of self-discovery. So, if you’re thinking about retirement right now, there’s a few things I want you to know and consider, ideally long before you get there. These decisions and explorations, if made before you retire, could be really important later in life.

1. Build your financial confidence muscles sooner rather than later

The people I know who have the most epic retirements are not wealthy - they have simply taken the time to properly understand their money and they have fairly aligned their goals with ambitions they can afford. If financial literacy feels like a challenge today - take some proactive steps to change that.  Read a book (I’ve penned a helpful one), enrol in a course, consult a financial adviser, or speak to your superannuation fund about your money. Or maybe, you should do all of these things. When you understand how you can make your money work for you, you can relax a little and make more active choices with confidence. 

2. Expect that it will take time to adjust - and prepare yourself for that

Fully retiring is an ‘ending’ of a whole phase of your life. Even if you choose it actively, you can feel a little grief or become a little lost in the months after the initial buzz has worn off. That’s perfectly normal.  When you put in a proper ending to anything in life, a marriage, a career, even a home, there is a ‘middle zone’ that can feel really uncomfortable before you find the new beginnings you dream of. Notice it, be present in it and take time to understand what will give you purpose and bring you happiness in the next stage. The period of discovery eventually leads to those new beginnings. You can prepare yourself better for adjustment by starting some new activities and forming networks outside of work, before you retire.

3. Know that the big banks probably won’t be very helpful to you after you stop getting pay cheques 

Banks are not really trying to target customers in their 50s, 60s and 70s. All their systems are designed around lending money to people who can pay 25 or 30 year mortgages.  When you retire - you don't qualify for these so most people don't get offered sexy lower margin products and services like high interest bank accounts and  credit cards and they certainly will struggle to borrow money.  So please, review your banking before you retire - and consider whether you need to switch to get the better deals through banks with a greater focus on paying you a good interest rate on your cash. Read more in this article.

4. Review and plan your credit card needs before you retire 

Nobody tells you that you will probably never be able to get another credit card after you retire - even if you have a million dollars in the bank. So if you need a balance increase - it’s wise to take steps before you get there. And, if you and your partner are sharing a credit card account, with one of you as the second cardholder, think about whether you need to set them up with an independent card. If something happens to the primary cardholder, they may never be able to access a credit card facility again. 

5. Work on your relationships - they’ll help you live longer

Quality relationships are much more important than job titles over your lifetime. Nobody tells you this during your career, but the largest study of happiness and longevity in the western world has clearly demonstrated that it isn't money that makes the difference. It's the quality of your relationship that makes all the difference.  A happy marriage, some best friends, a loving family - can create a protective bubble that positively impacts your health and lifespan. 

6. Know that you can make health a priority - even if you have never done so in your life. 

The science of ageing shows that regular exercise, intermittent fasting and a good quality diet packed with fruits and vegetables, omega 3, 6 and 9 oils, and healthy grains and seeds can slow or even reverse the damage of cellular ageing by stimulating something called cellular autophagy. And it doesn’t matter when you start in life - just as long as you start.  The benefits are incremental and quite significant. So take the time to make your health a priority, even if it is a new project, started now. 

7. Fuel your curiosity

 As you prepare for and dream about your retirement - ignite your curiosity.Really put a bomb under it. Dive into new interests, explore uncharted territories, and relish the freedom to learn without constraints of time. Curiosity is the driving force that keeps life vibrant and fulfilling, regardless of your age.

Understanding these seven useful tips before retirement can significantly enhance your journey into this new phase of life, setting the stage for a more informed, fulfilling, and vibrant retirement experience.

Have you found others people should know? Email me (just hit reply to this email).

From Bec’s Desk

Another huge week for those of us in the second half of life.

The promised increases to the age pension and rent assistance payments finally arrived in bank accounts this week. More than 2.6 million retirees, who rely on the age pension, enjoyed an increase in their income from September 20. For those eligible for rent assistance there was considerable relief. Moreover, if you fall just outside the limits for the Commonwealth Seniors Health Card, it's a smart time to take another look, as the limits have been given an upward nudge to account for inflation. Most people don’t realise that 62% of Australians over 67 draw down an age pension of some time. And once they find that out, they breathe a big sign of relief that it is so common and widespread. Read more about it here.

This week I performed a keynote presentation at the Over 50s Lifestyle Forum hosted by lifestyle community operator Gemlife, a fabulous event held near Bribie Island in South East Queensland with a powerhouse speaker lineup. Many thanks to Gemlife for the invitation. It was awesome to see so many of you arriving with your copy of the book for signing!

I’m doing a lot more guest speaking now, so if you have an event for pre-retirees or retirees coming up and want to offer them some proactive education and inspiration - reach out. More info here.

And finally, How to Have an Epic Retirement was restocked in all the major booksellers after what seemed like a very long 12 or 13 days without many books in the stores, online and off. Buy it now on Booktopia here. And please don’t hesitate to help us spread the word.

Thank you for reading Epic Retirement. This post is public so feel free to share it.

Share

Do you have a question to ask or a story that you think we should tell? Reach out to me on email bec@epicretirement.net. Or, simply send me a photo of you withe the book and tell me one of your retirement stories!

Whatever you do, have a wonderful week and make it epic!

Many thanks! Bec Wilson

Author, columnist, retirement educator, and keynote speaker

Not retirement read yet? Catch up strategies for late starters

This article was first published in both print and digital on Sunday 17th September 2023 in The Age, The Sydney Morning Herald, Brisbane Times and WA Today. Read it here.

Let’s face it, life doesn’t always go as planned. In fact, more people than you might expect find themselves in their late 40s, 50s and even early 60s, and not having saved enough for retirement – yet! It might be because of unexpected financial setbacks or divorce, or simply because your priorities were elsewhere. If you’re feeling like you haven’t paid enough attention to your retirement planning, there is still time to play catch-up – for most people. Here’s how to get started:

Understand your current superannuation balance and how it is invested

If you’ve got this far in life, you will have likely paid compulsory superannuation contributions into at least one super fund. And you may not have paid a lot of attention to it until now. But an important step is to properly understand your current super balance, your account fees and the type of investment set up in the account. And if you have a number of funds, tidy that up.

Many people don’t realise that the balanced or default account for your superannuation fund is only one of the investment options. Depending on where you are in life and how much risk you are prepared to take, you could consider stepping it up to “growth” for a few years to maximise your compounding in an attempt to increase your super balance fairly passively.

Most funds will offer you access to a financial adviser to discuss your risk appetite and intra-fund options, or if you want to consider switching, you might want to talk to an independent adviser.

Recut your budget and consider contributing more to superannuation

The next step is to closely examine how much you need to live on, and how much you could afford to save each week or month for retirement. And to do that, you should create a household budget and look through it for ways to save. You can download a budgeting template here.

This is only part of the article. Read the rest of this article on The Age here.

Join me on Facebook & Instagram

I’m delivering a stream of micro-lessons about retirement on Instagram and Facebook, so depending on which is your favourite, please, come along and be a part of the conversations.

Follow me on Facebook here

Follow me on Instagram here

And you should already be a member of our Epic Retirement Facebook Group. If you aren’t you can join here: facebook.com/groups/epicretire

Order your copy of How to Have an Epic Retirement here

It’s back in stock at Australia’s two largest online booksellers.

Thank you for reading Epic Retirement. This post is public so feel free to share it.

Share

Not retirement-ready yet? Catch-up strategies for late-starters

This article was first published in both print and digital on Sunday 17th September 2023 in The Age, The Sydney Morning Herald, Brisbane Times and WA Today. Read it here.

Let’s face it, life doesn’t always go as planned. In fact, more people than you might expect find themselves in their late 40s, 50s and even early 60s, and not having saved enough for retirement – yet! It might be because of unexpected financial setbacks or divorce, or simply because your priorities were elsewhere. If you’re feeling like you haven’t paid enough attention to your retirement planning, there is still time to play catch-up – for most people. Here’s how to get started:

Understand your current superannuation balance and how it is invested

If you’ve got this far in life, you will have likely paid compulsory superannuation contributions into at least one super fund. And you may not have paid a lot of attention to it until now. But an important step is to properly understand your current super balance, your account fees and the type of investment set up in the account. And if you have a number of funds, tidy that up.

Many people don’t realise that the balanced or default account for your superannuation fund is only one of the investment options. Depending on where you are in life and how much risk you are prepared to take, you could consider stepping it up to “growth” for a few years to maximise your compounding in an attempt to increase your super balance fairly passively.

Most funds will offer you access to a financial adviser to discuss your risk appetite and intra-fund options, or if you want to consider switching, you might want to talk to an independent adviser.

Recut your budget and consider contributing more to superannuation

The next step is to closely examine how much you need to live on, and how much you could afford to save each week or month for retirement. And to do that, you should create a household budget and look through it for ways to save. You can download a budgeting template here.

This is only part of the article. Read the rest of this article on The Age here.

The wait is OVER! Epic Retirement is BACK

Hi there,

I am thrilled to announce that How to have an Epic Retirement is now available for online purchase again.

Order now

Many thanks for your patience over the last twelve days. I’m pleased to report that the second reprint of How to Have an Epic Retirement has been restocked, and you can now finally get yourself a copy knowing it will arrive within days.

I am incredibly proud of the response to the book so far. It has sold out online in Book Epic Retirement">Amazon and Booktopia several times and run the warehouse out completely. It has also reached #4 on Booktopia’s National Bestseller list, #8 on Dymocks Business & Finance Books list and #1 on Amazon Australia in the category of ‘Retirement’. And, it has been in very short supply in bookstores throughout Australia in the lead up to Fathers’ Day after spending 5 weeks as the #1 bestselling self-improvement book by an Australia author.

How to Have an Epic Retirement is the ultimate guidebook for modern retirees. It is grounded in my own widespread research on modern retirement, and draws on my prior ten years as the CEO of Starts at 60 and Travel at 60 (before I stepped away to pursue my next career in retirement education). It also draws on the work of the leading thinkers in the longevity, health, happiness, purpose and modern ageing spaces and incorporates many interviews with people who have navigated the sometimes challenging path into retirement.

Thank you in advance for ordering your copy of How to Have an Epic Retirement today (or if you have already done so!). You can also join more than 12,000 people in our Epic Retirement Facebook Community.

Here’s an excerpt from a wonderful email I received last week - I love to get your personal notes! (you can email me by hitting reply to this email):

“When I read your book I pestered my husband to read it so we could discuss it together. Not usually a man easily swayed in his life choices, he has also found your advice and style accessible and important. I have recommended your book in an evangelistic style that is quite unlike me and I know at least two people have bought it since.  I told a friend yesterday that I haven’t been this excited about my life opportunities since I finished year 12- in fact I am calling this my ‘gap year’ – and it is thanks in a large part to you. I am so grateful that you are sharing your wisdom.”

I’m grateful you are enjoying it. If you have it already and are working through it - drop me an email with your thoughts and questions!

Many thanks! Bec Wilson

Author, columnist, retirement educator, and keynote speaker

Don’t forget that as a reader of the book, you also get the following really useful tools:

Access to and a detailed insight into how to use the Epic Retirement Budgeting Template to help you prepare your pre and post retirement budget.

Access to the Seniors Concessions Guide - a helpful overview of concessions throughout Australia

Access to and a deeper understanding of the Longevity Calculator built by some of Australia’s best actuaries.

The best 60th birthday idea I’ve ever heard: adapt it for your next big moment

In this week’s Epic Retirement newsletter we have:

Article: The greatest 60th birthday idea I’ve ever heard: adapt it for your next big moment

Video: A Retirement Diaries interview with Liz Heitmeyer about 60@60 and how it really felt to retire when she was at the top of her game

From Bec’s Desk: More books finally arrived today and, we have started filming the Epic Retirement Course

SMH/Age Money Article: The traps forcing retirees to pay more tax than they have to

Buy the Book: It’s finally back in online retailers’ warehouses

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The greatest 60th birthday idea I’ve ever heard of: adapt it for your next big moment

The best ideas are often borrowed from other people and adapted to fit into your own life and this week I’ve got a doozy to share with you. 

This week I got a wonderful email from Liz Heitmeyer, an epic retiree who turned 60 just two weeks ago. She shared the single greatest sixtieth birthday celebration idea I have ever heard and she’s kindly opened it up for you to adapt and reuse today. She’s also opened up about her experience of retiring over the last year at the age of 59, and how it felt to step away from a really fulfilling career as a teacher, leader and director of theatre in schools when she was at her best, and how exciting and terrifying she found the shift. Maybe a few of you can relate.

Creating and collaborating with teams has been one of her greatest joys and one of her main fears about retirement was that this would come to an end. But she’s really outdone herself since retiring, in ways that I’m sure will inspire you. She’s not only kicked off the most epic 60th birthday celebration ever, she’s also stepped up her proactive and curious approach to life, embraced 5:2 intermittent fasting, and started exercising 5 days a week. 

The best 60th birthday party idea ever: 60@60

But we have to start with the party! Liz didn’t want to just ‘have a party’ and invite her 60 or 65 friends, many of whom live in faraway places, only to find that many couldn’t come. And she didn’t want to host an event for four hours and barely have time to spend meaningful time with each individual person. So instead she asked her 60 most amazing friends to do something really cool and different. 

Instead of having a party, she instigated a festival of Liz she called  ‘60@60’. She sent out an invitation inviting her 60 closest friends to ASK HER to attend an event of their choosing, anytime before the end of the year! 

And her friends embraced it! They’ve all racked their brains for great ideas to go out and experience each other’s company. And her 60@ 60 has turned into a roaring calendar of activities to spend special time often one on one or in small groups with dear friends. And her birthday will roll on for months! 

So now she has reconnected with her dearest friends in a very intentional way, and she has a very full calendar. And, more than that, she is looking forward to spending time with her oldest and best friends from all throughout her life doing all sorts of things - from going to restaurants, on bike riding trip through the local rail trails, to see Moulin Rouge, see a dance concert, to have champagne with a friend in Newcastle (a long way from home for Liz), a day at the cricket. She has even booked an indulgent trip to Bali with her best friend.

Liz, who discovered Epic Retirement earlier this year, just around the time she retired, says it has been a hugely exciting way to celebrate. 

Thanks for reading Epic Retirement! Subscribe for free to receive new posts and support my work.

So when I asked if we could share her invitation so you could contemplate using her wonderful idea for yourselves, she jumped at it. She wants everyone here to enjoy the joys of catching up with old friends like she has been in these last few weeks. Below I have included a copy of Liz’s invitation. Maybe it will inspire you the same way it did me, and you can adapt it to fit your own upcoming celebration. I’m thinking I’d love to do a 50@50 for my next milestone birthday! Or maybe 65@65 is more you?

An interview with Liz Heitmeyer that dives into how it really felt to retire

To give you a really personal insight into her experience of both the 60@60 celebration, and her recent experience of retiring, I (Bec Wilson), interviewed Liz on our Retirement Diaries video this week. You can watch the whole video on YouTube in our Retirement Diaries show here. (Sorry - we aren’t doing a podcast version of Retirement Diaries anymore, only Youtube!). 

Here’s some highlights: 

1.00: Liz’s 60@60 birthday party celebration: How it works, and what she’s seen flow out of it. 

7.15: Liz has just retired from a career, where she was at the top of her game and she explains what that felt like. “It felt like jumping off a cliff”. She opens up about her fears, worries and feelings. 

9.00: Why she is still calling it her ‘gap year’

9.54: Why she’s pleased she stopped work while she was happy rather than waiting to get burnt out. 

11.17: The feeling of realising she was not alone, and that other people approaching and in retirement also felt uncertainty and how she managed that feeling. 

14.29: On getting her Seniors’ card in the mail this week - and why she’s embracing it!

“As a friend pointed out, it has on it, ‘please treat the holder of this card with the courtesy and respect they deserve’. So we’re gonna go around flashing our Seniors’ card at everybody.”

15.00: On taking her health and longevity more seriously. Liz explains how she’s exercising, doin 5:2 intermittent fasting and worrying about her waistline since reading How to Have an Epic Retirement. She explains her intermittent fasting regime and how it’s working for her. 

20.13: On being more curious and intentional, and what to do if you have lost your curiosity. 

21.05: Bec reads out the invitation that Liz sent to her friends to invite them to be a part of her 60@60 festival.

From Bec’s Desk this week

Finally, copies of How to Have an Epic Retirement are gradually arriving back in stores, both offline and online, from our second reprint. I only received my new stash of copies from the wholesalers today, so if you’ve been waiting patiently for an online order to arrive, it shouldn’t be long now.

If you’ve been waiting for more stock to arrive to place your order - now’s a good time to get in. Booktopia has theirs in the warehouse, and they have it listed at 30% off at the time of writing.

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This week we kicked off the filming of the How to Have an Epic Retirement Flagship Course. I am thrilled to be working with a wonderful video and animation team of 6 people (that’s some of our new team epic in the pics below!). This is something I am really passionate about bringing to life, knowing how many of you have shown an interest in learning practically about how to prepare for a modern retirement, alongside others in the same boat. If you’d like to learn more about the program complete our expression of interest form here and we’ll send you more information when it is ready.

Retirement education at scale for companies - We are also customising this program for corporate partners to run for their soon-to-be-retiring clients and staff. So if you want to help people navigate all the pillars of an epic retirement, or just a few - reach out for a chat!

Have you read the book?
Are you enjoying it and want to ask a question, share a helpful story or send me a message? You can email me at bec@epicretirement.com.au
Would you like to share your feedback with others? The best place to leave a review is on Goodreads.com. And I would be very grateful if you’d do so.

Got a comment to leave on the stories or the newsletter? Pop on over to the site and leave it for me. Don’t forget to ❤️ the post while you are there!

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Keep reading for my controversial article from The Sydney Morning Herald on the weekend, and until next week, make it epic!

Bec Wilson Xx

The traps forcing retirees to pay more tax than they have to

This article appeared in The Age, The Sydney Morning Herald, Brisbane Times and WA Today on the weekend and drove a lot of discussion on Linkedin. Read it here.

Sydney Morning Herald September 9, 2023

There’s a puzzling issue in Australian retirement finances that’s got everyone scratching their heads: why aren’t older Aussies making the switch to retirement-phase superannuation sooner and reaping the sweet, tax-free benefits?

It’s a bit of a head-scratcher because, believe it or not, there are more than a million retirees down under who are leaving their hard-earned cash on the table for the taxman to feast on for longer than necessary. Ouch!

To put things in perspective, there are nearly 1.3 million APRA regulated superannuation accounts out there in the accumulation phase, holding a whopping total of close to $225 billion, all in the hands of folks aged 65 and up in our country.

These are folks who, regardless of whether they’re still working, could make the leap from the “accumulation phase” to the ‘retirement phase’ and watch their superannuation earnings and capital gains become tax-free instantly, adding a decent amount to their annual returns.

But they haven’t done this for some reason. And guess what? There’s also a bunch of people in their early 60s who could join the club and enjoy those tax breaks. Sure, some of these accounts will be held by those who have more than $1.9 million in their transfer balance fund and can’t move any more to retirement phase, but we know that’s a far smaller number of people than the number of accounts sitting out there.

So, why’s it happening? Well, the experts seem to think that a lot of folks nearing retirement just don’t quite grasp the ins and outs of their superannuation. It’s like a secret treasure chest they haven’t cracked open yet.

But in doing so, they don’t realise that they’re paying up to 15 per cent income tax as well as capital gains tax on their investments in the accumulation phase that they wouldn’t have to pay in the retirement phase of superannuation.

So let’s stop for a minute and understand how it works, and what you might want to consider if you’re one of these people. Superannuation is not an investment. It is a tax-advantageous investment structure. And it has two phases.

Accumulation Phase: During this phase, people contribute to their superannuation fund, and their contributions are generally taxed at a concessional rate of 15 per cent. The money invested in the fund grows over time through various investments, such as stocks and bonds. This phase typically occurs while people are still working and saving for retirement.

Retirement Phase: Once a person reaches the age of retirement (usually 60 or older), they can start drawing on their superannuation savings. In this phase, the income generated from the superannuation fund, including pensions and withdrawals, is typically tax-free. That is, income tax-free and capital gains tax-free. So, the amount your same pool of monies invested can earn once in retirement phase is usually higher than in accumulation phase. Ultimately, this phase is designed to provide financial support during retirement that will allow you a passive income for the rest of your life.

So, what do you need to know to make the most of your superannuation, potentially increase your income, and reduce your tax burden during retirement? Let’s break it down:

This article continues on the Sydney Morning Herald. You can read it all here.

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Buy the book, ebook or audiobook now

How to Have an Epic Retirement is the ultimate guidebook for modern retirees.

It guides readers through the way the systems of retirement work, and is packed with tips, insights and guidance that spans six pillars of an epic retirement. It is designed to help you learn the valuable lessons that modern retirees wish someone had shared with them before they kicked off the changes and stages of life that come after retirement. Learn about the big areas of time, money, health, happiness, travel, and your home as you age. And have your own epic retirement.

You can buy it 30% off on Booktopia.

You can also get it on Amazon, Kindle and Audible here.

Or, you should find it wherever books are sold - Big W, Target, Dymocks, David Jones, QBD, Collins, all major airports and loads more - see the stockists here.

The traps forcing retirees to pay more tax than they have to

This article appeared first in The Age, The Sydney Morning Herald, Brisbane Times and WA Today on the weekend and drove a lot of discussion on Linkedin. Read it here.

There’s a puzzling issue in Australian retirement finances that’s got everyone scratching their heads: why aren’t older Aussies making the switch to retirement-phase superannuation sooner and reaping the sweet, tax-free benefits?

It’s a bit of a head-scratcher because, believe it or not, there are more than a million retirees down under who are leaving their hard-earned cash on the table for the taxman to feast on for longer than necessary. Ouch!

To put things in perspective, there are nearly 1.3 million APRA regulated superannuation accounts out there in the accumulation phase, holding a whopping total of close to $225 billion, all in the hands of folks aged 65 and up in our country.

These are folks who, regardless of whether they’re still working, could make the leap from the “accumulation phase” to the ‘retirement phase’ and watch their superannuation earnings and capital gains become tax-free instantly, adding a decent amount to their annual returns.

But they haven’t done this for some reason. And guess what? There’s also a bunch of people in their early 60s who could join the club and enjoy those tax breaks. Sure, some of these accounts will be held by those who have more than $1.9 million in their transfer balance fund and can’t move any more to retirement phase, but we know that’s a far smaller number of people than the number of accounts sitting out there.

So, why’s it happening? Well, the experts seem to think that a lot of folks nearing retirement just don’t quite grasp the ins and outs of their superannuation. It’s like a secret treasure chest they haven’t cracked open yet.

But in doing so, they don’t realise that they’re paying up to 15 per cent income tax as well as capital gains tax on their investments in the accumulation phase that they wouldn’t have to pay in the retirement phase of superannuation.

So let’s stop for a minute and understand how it works, and what you might want to consider if you’re one of these people. Superannuation is not an investment. It is a tax-advantageous investment structure. And it has two phases.

Accumulation Phase: During this phase, people contribute to their superannuation fund, and their contributions are generally taxed at a concessional rate of 15 per cent. The money invested in the fund grows over time through various investments, such as stocks and bonds. This phase typically occurs while people are still working and saving for retirement.

Retirement Phase: Once a person reaches the age of retirement (usually 60 or older), they can start drawing on their superannuation savings. In this phase, the income generated from the superannuation fund, including pensions and withdrawals, is typically tax-free. That is, income tax-free and capital gains tax-free. So, the amount your same pool of monies invested can earn once in retirement phase is usually higher than in accumulation phase. Ultimately, this phase is designed to provide financial support during retirement that will allow you a passive income for the rest of your life. So, what do you need to know to make the most of your superannuation, potentially increase your income, and reduce your tax burden during retirement?

Let’s break it down:

This article continues on the Sydney Morning Herald. You can read it all here.

Could you finally pursue your teenage dream? Age pension and rent assistance payrise coming

This week in our epic retirement newsletter we have:

Article - Could you finally pursue your teenage dream?

From Bec’s Desk this week

Article - A significant rise to the age pension and rent assistance

SMH/Age article - The real costs of a longer, healthier retirement

Support what we do: Advertise here

Are you interested in advertising in this one premium position on our newsletter to support what I do with Epic Retirement? I have resisted up until now, but with 16,000+ subscribers to the weekly newsletter and a huge 53% open rates on our emails I think it could be time to tastefully garner some commercial support for the work I do for pre-retirees and retirees. Hit the red button to contact me about advertising.

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Could you finally pursue your teenage dream?

So many times in our lives we choose the ‘sensible’ path.  We become accountants, rather than artists, musicians or authors to secure a good reliable income. We go to the gym or for a walk instead of joining a theatre club or choir and performing in our spare time. We come home and do the laundry and chores on weekends, instead of spending time at an animal shelter on a Saturday or a Sunday. Those activities don’t pay the income that keeps a roof over our heads in the middle years of life easily, and they don’t keep the wheels turning at home, so many people can’t or don’t prioritise them.

But retirement can be different. For the first time in your life, you can spend some or all of your time doing things that you don’t rely on for an income. Things you’ve always wanted to do but your ‘sensibility’ has got the better of you on before now. So what’s stopping you becoming an artist, a writer or a musician now?

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Retirement is the first time in most people’s lives when they get to live off an income that isn’t generated from things they ‘do’ every day. Instead they find themselves living off a combination of age pension, superannuation and investment income. And that leaves them in a position, for the first time since their youth, to pursue things to do with their time that they find real fulfilment in.

The one thing you’ve really got on your side is the lack of pressure to turn this activity into a career, or an income that keeps your parents from telling you to ‘get a real job’ like they did all those decades ago. And, when you pursue them you can do it for the complete and utter joy, not ambitious commercial goals, bringing a different level of creative or curious freedom to your involvement that others in pre-retirement quite often cannot afford. 

I asked our Epic Retirement Facebook Community if there was something they always wanted to do but never did because it didn’t pay the salary they needed earlier in life? 28% of people said they wanted to write a book, 21% said they wanted to travel, 13% wanted to build and tend a garden, 11% said they wanted to care for animals, and 8% wanted to do a masters degree or PhD. And that was just some of the answers.

If these things are on your “I wish I did” list, what’s stopping you from putting them on the “I could give it a try” list in retirement?

The key becomes - you have to start. And starting is hard, particularly if you’re out of practise.

No one is going to pick you, and invite you to write a book. So you will need to reason out your book idea, work through the self-publishing process and turn it into a project. And it could be one heck of a fulfilling project. Jim, one of the people I interviewed for How to Have an Epic Retirement, wrote a book about his family history and published it just weeks before his parents died, bringing both him and them great joy.  

In the same way, no-one is going to reach out to you from an animal shelter or community garden and invite you for a visit - unless you ask how you can get involved. But with one phonecall you could find out, and organise your first visit.

And the local theatre troupe certainly won’t come knocking on your door to invite you to audition. But you could call them to ask when they are next auditioning for a show, or if they need a stage-hand. 

So the question I have for you is “what would you like to try?” Can you finally live out a childhood or teenage dream? It’s your retirement. Make it epic.

From Bec’s Desk this week

Wowsers! How to Have an Epic Retirement sold out in Amazon and Booktopia more than a week ago now, and have remained out of stock while we waited for the reprint to arrive in the warehouse. And this morning it finally does!

For an author on the bestseller list, selling out online presents a bit of a (first world) problem - because it was more difficult for everyone to buy the book and keep it on the bestseller list. I was pretty sure we wouldn’t be able to stay there this week!

But, thankfully, you found copies to buy. The weekly national book sales statistics were in yesterday and we are AGAIN the #1 bestselling self improvement book by an Australian author - now for the fifth week in a row! That’s crazy! Thank you again for another week of enthusiasm and support.

If you haven’t bought yourself a copy yet, Booktopia still has a 30% discount deal on it, at the time of writing.

This week I’ve been hard at work on the BRAND NEW PODCAST I can’t tell you about yet - but hold your breath and watch this space. It is nearly ready for you to know more.

And, in every spare minute I’m working on the official course for How to Have an Epic Retirement. That’s a big job! (Register your interest for when it’s released).

As you already know I write a weekly column for the Nine Newspapers, which I include on this newsletter below. (You can read all my articles here).

I’ve also started writing a monthly column for National Senior’s Australia, an advocacy organisation I have heaps of respect for. This month I wrote about one of the greatest legacies I believe our seniors can leave is to help build financial confidence in younger generations. It’s called ‘Families and Money - the stuff we don’t talk about much’ - (You can read it here).

Read the book and want to send me your thought? Have you got a question you want answered (remembering I cannot give you personal financial advice!)? Send it in to me, simply by filling out this form - or email me at bec@epicretirement.com.au. I love to hear from you.

Got a comment to leave on the stories or the newsletter - pop on over to the site and leave it for me. Don’t forget to ❤️ the post while you are there!

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Keep reading for a juicy update on the pension increases coming, and until next week, make it epic!

Bec Wilson Xx

A significant rise to the age pension and rent assistance

It’s been a week filled with good news. The more than 2.6 million retirees who rely on the age pension can now see another lift in their income from September 20, and for those eligible for rent assistance there is a significant boost too. And, if you are just outside the limits for the Commonwealth Seniors Health Card now, you should double check, because the limits have been given a boost, indexing for inflation.

In a welcome announcement, the Australian government has unveiled increases to income support payments and pensions, providing much-needed financial relief to millions of Australians. These adjustments, set to take effect on September 20, come as part of the government's commitment to addressing the rising cost of living. The move follows the introduction of a comprehensive $14.6 billion cost of living package earlier this year.

Here are the key changes that will be implemented from September 20 that affect retirees:

Recipients of the age pension will receive an increase to the single pension rate of $32.70 to $1096.70 per fortnight, and for couples combined, the rate will increase by $49.40 to $1653.40. These figures include Pension Supplement and Energy Supplement. And the net effect could be more than $2500 in the hip pocket for some couples.

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In addition to this, income support recipients who are renting will enjoy an increase in the maximum rates of Commonwealth Rent Assistance. Single people will see the maximum rate rise by $27.60 to $184.80 per fortnight and couples will see the maximum rate increase by $32.34 to $217.28 per fortnight.

And finally, the income Limits for Commonwealth Seniors Health Card recipients will also be indexed, increasing by $5400 to $95,400 per annum for singles and by $8640 to $152,640 per annum for couples combined.

Other supplementary payments, including Telephone Allowance and Utilities Allowance, will also be indexed. Full article here.

If you are looking for concessions to help with the cost of living be sure to download our Epic Retirement Seniors Concessions Guide here.

The real cost of a longer, healthier retirement

This article was first published on 2nd and 3rd September 2023, in The Sydney Morning Herald, The Age, Brisbane Times and WA Today, in both print and digital.

I have to admit being a little obsessed by the opportunity to live longer lives, and the need to live healthier as we do so. So, I dug deep into The Intergenerational Report 2023 this week to see how the government is projecting life expectancy to change for people who make it to the age of 65 over the rest of their lifetime.

Of course my obsession lies partly in trying to calculate how much money people really need to live out an epic retirement, and how we can better plan for, and expectation manage our goals of living a longer life.

They’re also pretty selfish. I want to live longer, and healthier for my years ahead than the generations before me.

So, what did I discover? I think the government are presenting the ‘safe’ and statistically correct picture of our ageing population, as you would expect. In fact, I believe the Intergenerational Report could be an exciting understatement for longevity in the decades ahead of us and today’s middle-agers and younger generations might live longer than the government charts can show.

And if they do, they’d want to get far more proactive about their health because you will pay if you don’t.

The good news is, our country can afford us to live longer, finally, thanks to the growth and advancement of superannuation, something we could not have said 20 years ago.

My conclusion, you should bet on living longer than the government thinks you will, and you should start looking after your health better now. Investing in your health now might just be the wisest long-term financial decision you can make.

Let me dive into why. The government statistics projected to 2062/63 in the Intergenerational report look conservative to many experienced actuaries around the country. That’s because they are based on historical statistical analysis which doesn’t factor in any rapid advancements in science or modern medicine.

I have to say, I don’t believe that we won’t see some major health breakthroughs in the next forty years.

The current life expectancy for men who reach the age of 65 is 85, and for women it is 87.7. This new edition of The Intergenerational Report projects that over the next 40 years, that number will rise by 4.7 years for men and 3.5 years for women, to predict an average life length of 89.7 for men and 91.2 for women.

Above is only part of the article - You can see the whole article here.

Order your copy now - buy the paperback, audiobook or ebook

If you haven’t ordered your copy of How to Have an Epic Retirement already, here’s how you can.

It is the ultimate guidebook for modern retirees.

How to Have an Epic Retirement guides readers through the way the systems of retirement work, and is packed with tips, insights and guidance that spans six pillars of an epic retirement. It is designed to help you learn the valuable lessons that modern retirees wish someone had shared with them before they kicked off the changes and stages of life that come after retirement.

Booktopia has new stock arriving today in their warehouse. You can buy it 30% off here.

You can also get it on Amazon and Audible here.

Or, you should find it wherever books are sold - see the stockists here.

Join me on Facebook & Instagram

I’m about to start a stream of micro-lessons about retirement on Instagram and Facebook, so depending on which is your favourite, please, come along and be a part of the conversations.

Follow me on Facebook here

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And you should already be a member of our Epic Retirement Facebook Group. If you aren’t you can join here: facebook.com/groups/epicretire

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