The importance of planning for later life

Australia is currently experiencing a longer life expectancy. The average woman is now expected to live to 85, the average man is expected to live to 81. The number of Australians aged over 90 is expected to increase by 250 per cent over the next 30 years. This is contributing to Australia’s aging population.

While living longer is a very positive thing, it can have significant consequences. Many are now concerned they may not have the financial savings to support them in their later years.

So, why is financial security in later life important, and how can you make your savings last?

What is the issue?

For a comfortable retirement the average person needs $1003 a week, while couples need $1413 a week. Where does this money come from if your superannuation runs dry?

The age pension is roughly half this amount – including maximum pension and energy supplements – at $1149 for singles and $1732.20 for couples per fortnight ($574.50 and $866.10 per week).

The cost of living crisis has also meant that many people have underestimated the amount of savings they will need. Rising healthcare, food and housing expenses add extra pressure, leaving many retirees concerned about outliving their nest egg.

How you can be more financially secure in retirement

Consider co-habitation

Living alone can be highly expensive. Economies of scale mean that living expenses of two people aren’t double of one. Sharing your home with another person can help you to reduce your living costs. Plus, it can help provide companionship and support with daily tasks, which can be vital in later years.

Consider downsizing

Over the period they have lived there, many people’s family home will have increased significantly in value. Selling it and relocating to a smaller, cheaper property can help free up funds to spend in your retirement. Downsizing may also reduce maintenance costs and make day-to-day living easier.

Claim a pension if eligible

Many people may not realise that they are eligible for a pension. They may overstate the value of their assets or not realise they can claim a part-pension. Any pension you receive helps to conserve your super and provides a safety net as you get older.

Make smart choices with your family home

When moving into aged care, deciding whether to keep or sell your home can have a big impact on your pension and care fees. In many cases, keeping the home (at least for the first two years) can reduce your aged care costs and increase pension payments. However, rules are complex. Therefore, you should always seek advice before making a major decision.

Seek financial advice

Getting tailored advice from a financial expert such as a financial advisor can help you avoid running down your savings too quickly. Professional guidance can also help you structure your super, investments and assets in a way that supports both your lifestyle and long-term care needs.

Looking beyond the numbers

Planning for later life isn’t just about finances—it’s also about purpose, connection, and support. A secure financial plan can give you peace of mind, but emotional wellbeing and community also play a vital role in healthy ageing. As Australia’s population ages, the need for compassionate aged care workers has never been greater. If you’re ready to take the next step in this rewarding field, Aged Care Resumes can help with tailored resume writing and selection criteria services.

Article References

Baker, H (27 August 2025) ‘Are you financially prepared to live until you’re 90?’, Sydney Morning Herald, accessed 28 August 2025.

Lane, R (2 July 2025) ‘The one move that could boost your pension’, Sydney Morning Herald, accessed 28 August 2025.