How to Fund Retirement as a Self-Funded Retiree in Australia

A self-funded retiree is someone who finances their retirement primarily through their own savings, investments and assets rather than relying on the Age Pension or other government benefits. These retirees have generally accumulated sufficient wealth through superannuation or other investments to fund retirement and adequately cover their living expenses without any reliance on government support.

Unlike retirees who depend on the Age Pension as their main source of income, self-funded retirees enjoy greater independence and financial flexibility. They generally have greater control over their retirement finances and lifestyle decisions, which enables them to tailor the life they want, whether that’s travelling, spending time with family and friends or indulging in favourite pastimes.

To be considered a self-funded retiree, you simply need to be able to support yourself in retirement, using your own wealth. This is generally a mix of income producing assets, other investments and your superannuation balance.

Key factors include:

• Income: A regular income stream from investment income, rental properties or a superannuation pension
• Assets: Accumulated wealth such as the family home, shares or other investments
• Superannuation: A substantial super balance that can support ongoing living costs

A self-funded retirement is a goal for many Australians. It typically offers financial freedom, flexibility and choice, generally not attributes provided by a retirement reliant on the Age Pension.

Despite this goal, many Australians retire without enough superannuation to fund a comfortable retirement and maintain the lifestyle they worked hard for. According to recent ATO data, the median superannuation balance for 65 to 69-year-olds is $198,715, a figure significantly below that required to self fund retirement – unless, of course, you have other assets to draw upon.

Being a self-funded retiree comes with significant advantages:

• Greater control over your financial future
• Greater flexibility in lifestyle choices
• Freedom to provide support to family members
• Access the best of medical and care services
• Control over your retirement savings to suit your changing needs

The family home is an often underused resource to fund retirement. Many retirees have significant wealth in their home, but don’t realise its potential to transform retirement funding. It can be used to boost regular retirement income or provide capital to meet other needs.

Household Capital can help you take control of retirement. Whether or not you’re a self-funded retiree, we can help you unlock the wealth in your home to fund retirement. This allows you to preserve other assets, particularly important in times of market volatility when drawing down on assets may adversely affect your long term financial security.

Our Household Loan is a reverse mortgage. It enables you to unlock the wealth in your home and provides you with flexibility and choice to improve your lifestyle and wellbeing. You retain 100 percent ownership of your home and can continue to live there as long as you choose.

With a Household Loan, you can access the wealth in your wealth to:

• Supplement your regular income with a monthly or fortnightly income stream
• Renovate or modify your home and garden so they are safe and comfortable for retirement
• Fund the lifestyle you’ve worked hard to enjoy
• Cover medical, dental, in-home or aged care costs
• Gift family with a home deposit or education funding

Household Capital is a retirement funding specialist dedicated to helping Australians Live Well At Home™. We have empowered 1000s of retirees to confidently unlock the wealth in their home and transform their retirement.

We offer:

• An education-first approach that empowers informed decisions
• A simple three-step application process
• Trusted advice from our Australian-based retirement specialists

Our commitment is to help Australians enjoy a comfortable retirement. Whether you are self-funded or reliant on government benefits, we can work with you to enhance your retirement funding and enable you to live comfortably in the home you love.

What’s the Next Step to Secure Your Retirement Funding?

Are you ready to take control and fund retirement on your terms? Contact Household Capital today to explore how a Household Loan can provide you with flexibility and choice to live retirement as you want it to be.

It’s as easy as 1, 2, 3:

1. Confirm Eligibility – Use our online calculator to see your accessible home wealth

2. Personal Consultation – Experience one-on-one personalised service with a retirement specialist

3. Application – We guide you through every step of the application process