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Retirement on a budget. Is the Seniors pension enough for you?

Could You Survive On The Seniors Pension?

In the old days, retirement was different. You could easily live on the age pension. But today, people are being urged to save their own money in order to be able to retire comfortably. The reason for this is that baby boomers are reaching their retirement years in high numbers, while the number of working individuals who support them is falling at a fast rate. To provide some perspective, just four years ago in 2010, each individual over the age of 65 had 5 working individuals supporting them.

However, that number is expected to decrease by over half by 2050, when it’s been estimated that there will only be 2.7 working individuals supporting every senior. And if that wasn’t bad enough, they expect that 23% of the population will have reached retirement age – or over – by that time. This means the age pension cannot be sustained at its current levels due to there not being enough taxpayers to keep it going at that rate.

Organization Is Key

Having a plan is the best way to ensure that your survival on the seniors’ pension if it were necessary. Currently, the pension stands at $19,076.20 annually for single status and $14380.60 annually for a member of a couple. That is between $553.10 and $733.70 per fortnight, or between $1106.20 and $1467.40 per month.

The Budget

Contrary to popular belief, many seniors out there are living well on $400 per week; they just chose to give up a more lavish lifestyle and live more simply. However, there must be a budget in place. This is the spending guide and without it, there is no way to know how much is available for food, bills, and the like.

Changing Perceptions

The current mindset of many may be to spend money for luxury items, such as shoes instead of putting that money in the bank. However, experts suggest that this kind of thinking won’t work when the goal is to live on the age pension. Instead, they say, it’s looking at those things, which can bring you true value, such as the ability to enjoy food grown in your own garden vs. buying more expensive food in a grocery store.

Shopping Around

Hand-in-hand with having a budget and altering the perception of what brings you value is ensuring that you are getting the best deal no matter when or how often you go shopping. Indeed, there are several ways to get good quality food, household items, and other necessities without having to pay full price for them.

For the individual or couple who aren’t used to simplifying, the age pension simply may not be enough to survive on. Where this is the case, you can call us to get your retirement planning underway.

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