If you’re on a limited income post-retirement, sometimes things happen that can leave you short. An extended illness, a lack of superannuation, and other circumstances can mean you just don’t have enough money to make ends meet. Don’t fear, though, because there are ways to make up for it.
The following are the first two steps you should take:
- Talk to an expert for SMSF advice.
- Make sure your budget is nailed down.
Options if You are Still in the Workforce
Are you still in the workforce, and foresee that you may have a shortfall of money? If so, then perhaps adding to your fund or starting another retirement investment project may be the answer. In the case that people in your family tend to live longer than the average lifespan (now 79 for men and 84 for women), it would be a good idea for you to think ahead and plan for along retirement.
If possible, work beyond the age of 60. People who can continue on in self-employed positions can continue to put money away, well into retirement. This will help supplement your pension when you do start to draw from it.
If you have the money now, invest in some properties that you can then rentout for income later on. This income will be very handy when you stop receiving that weekly paycheque.
Another way to solve your retirement funding shortfall is to re-budget. Reduce the costs of things wherever possible. For example, instead of buying a few bottles of wine a week, why not try your hand at making it yourself? You’ll learn a new hobby and save some money in the process.
An alternative way to save money is to sell your vehicle if you live in a city where public transport is well maintained. This is especially easy if you live in a neighbourhood that has nearby shopping and dining access. Think of how healthy you’ll be, too, when you’re spending all that time walking instead of driving!
Self-Managed Super Insurance
If you run your own fund, make sure you have self-managed super insurance. This will help protect your fund, in the event that something happens to you; for example, if you lose your job or come down with an unexpected illness or injury.
Sell Some of Your Furniture and Downsize
Another creative way to raise some extra cash involves selling some of your furniture and downsizing. If you have furniture or other belongings you don’t use, why not sell them privately? That will give you some additional funds, and it will also help you de-clutter your home.
This is especially helpful if you are planning to move to a smaller home. Get rid of the furniture now, so you don’t have to move it or pay a removalist to do it for you!
In the end, there are lots of things you can do to supplement your retirement income if it comes up short; analyse your budget and income and see where you can make changes.