November 23, 2017

Reasons Why Having a Hobby Saves You Money during Retirement

Many retirees in Australia fear of running out of money, and for good reason. By the time you retire, you no longer have paychecks but the bills will continue to come in. And if you didn’t prepare for retirement, you may not be able to live the life that you want after you stop working.

Why you need a hobby?

You’ll have a relaxed, comfortable life, and this hopefully translates to a healthier you, with less hospital visits that can take a chunk off of your retirement fund.

Having a hobby during retirement is one good way to save money – retirement money, that is! Whatever it is that you’re good at, be it arts and crafts, gardening, playing a musical instrument or pottery, you can use your hobby to generate income during retirement. With this extra money coming in, you will access your retirement funds less frequently which helps in saving money.

Another reason why having a hobby saves you money during retirement is that it keeps you busy and mentally active. It’s about doing something that you love rather than for practical reasons so you can change your lifestyle that suits you and even get a new outlook in life. With a hobby, you’ll have a relaxed, comfortable life, and this hopefully translates to a healthier you, with less hospital visits that can take a chunk off of your retirement fund.

Here are other things worth-knowing about retirement planning, superannuation, and saving money:

How much do you really need upon retirement?

There’s no definite amount, but several factors come into play, such as your lifestyle and anticipating some of your needs that can change over time. That is why it is important to start planning for retirement while you’re still working. You can also use a superannuation calculator to give you an idea of how much you need to live a comfortable life when you retire.

Start planning for retirement early.

A retirement plan is not something that most people think about when they’re young but in reality, it’s best to start a retirement plan as early as possible so you can have a lot of time to grow your superannuation in Australia and not worry about running out of money. Review your finances and assess your current situation – how much super you have, your assets, and possible income sources that can contribute to your retirement fund.

Get professional advice.

A financial adviser will be able to help you with retirement planning. He/She will also be able to give you sound advice on where to invest so your money will grow in value and keep up with inflation and other factors that can affect your savings.   

Do you have additional tips on retirement planning and superannuation? Share your ideas in the comments section.

About the author  ⁄ Marxa Dillan

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