Retirement curveballs: staying steady during unexpected change

Have you heard of the longevity revolution? With Australian life expectancy now over 80 years¹, it’s a term coined for the long, and hopefully vibrant lives Australians are leading in retirement. Gone are the days when retirement meant a quiet wind-down. In today's world, retirement unfolds as an active phase that can span decades – delivering different stages with unique changes.

Planning for a longer retirement isn’t just about finances. It also means learning how to manage change, including any unexpected curveballs that may arise. This article takes a closer look at modern retirement planning, and how to navigate unexpected changes in retirement with confidence.

The longevity revolution

The longevity revolution has delivered a large shift in retirement expectations. According to research from Age Wave², life previously came in three stages: education, work, and family and leisure. Sabbaticals, part-time work, scaling work up and down, and delayed retirement are now allowing us enjoy a non-linear life that comes with multiple stages, including the benefits of semi-retirement.

Major retirement curveballs

Like any other time in life, expectations and the day-to-day of retirement can change. A report by Edward Jones and Age Wave³ showed 75% of retirees experience a ‘curveball’ or ‘cannonball’ event. These unexpected changes in retirement can include the following:

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Source: Edward Jones, Resilient Choices Trade-Offs, Adjustments, and Course Corrections to Thrive in Retirement.

Dealing with big changes in retirement

It may sound simple but the key for managing the unexpected is planning ahead. If you’re prepared, you’ll be ready to face those challenges. Here are some top tips for dealing with retirement curveballs.

Get curious and get connected

Facing new or stressful situations with your health or finances can be daunting. Knowledge really is your friend when dealing with change. But before you end up down a Google rabbit hole, start by connecting with trusted family or friends who can offer valuable insights from their experiences. Seek out expert support, for example, from your local council or government support services. Aware Super also provides a range of resources for SASS members. This proactive learning approach will help you make informed decisions.

Stay on top of your paperwork

Keep your wills, insurance policies, superannuation details, and health care directives in an accessible and secure location. Keep these documents up to date to reflect any changes in your life circumstances and ensure that your insurance covers you for unexpected events such as serious illness or disability.

Make sure your retirement savings can go the distance

Knowing where your income will come from in retirement and making sure your retirement savings can go the distance is one way to feel financially confident and in control for your future. For SASS members, moving from a defined benefit scheme to making your own decisions about your future finances can be a big step. Taking time to make a plan and revisiting that plan when things change will give you peace of mind regarding your financial security. The Age Pension can also provide a safety net at different times in your retirement journey.

Stay physically and mentally active

The fourth biggest curveball for retirees, according to research³, is experiencing a significant illness or health issue. A healthy lifestyle can be your best defence against unexpected health changes and hefty hospital bills. There are many different ways to look after your health. Take some time to find what works for you. Move into retirement with confidence Remember: along with the curveballs, there will be windfalls too. From welcoming new family members or friends to your circle, to finding new hobbies and passions, or fulfilling long-held dreams. Having a flexible mindset when it comes to retirement and being willing to adjust your lifestyle and goals is an essential skill for this next life chapter.

Move into retirement with confidence

Remember: along with the curveballs, there will be windfalls too. From welcoming new family members or friends to your circle, to finding new hobbies and passions, or fulfilling long-held dreams. Having a flexible mindset when it comes to retirement and being willing to adjust your lifestyle and goals is an essential skill for this next life chapter.

Where to next?

Disclaimer

This information is of a general nature only. Before taking any action, you should consider your personal circumstances, financial situation and needs, and if appropriate seek professional advice. It does not contain any recommendations to you in relation to current products that you hold.

Please read our product disclosure statement and Target Market Determination (TMD) available at retire.aware.com.au/PDS before making any decision about Aware products.

Financial planning services are provided by Aware Financial Services Australia Limited (AFSAL) (ABN 86 003 742 756, AFSL 238430), a wholly owned by Aware Super. Issued by Aware Super Pty Ltd (ABN 11 118 202 672, AFSL 29330). You should read the Financial Services Guide before making a decision about using AFSAL services.