Transition to Retirement – What it Means and Involves

Transition to Retirement – What it Means and Involves

Retirement and pension age for Australians began a little over a hundred years ago and has been evolving every since. It used to be that retirement age was far past the average life span of a worker and that when a person did reach the age where they could transition to retirement, they were expected not to work at all and just rest for the remainder of their lives.

Retirement and pension age for Australians began a little over a hundred years ago and has been evolving every since. It used to be that retirement age was far past the average life span of a worker and that when a person did reach the age where they could transition to retirement, they were expected not to work at all and just rest for the remainder of their lives. In reality, most people were never able to transition to retirement and if they did, then rest is the only thing they could probably do. Retirement has changed and now it is a thing that most of us will be able to experience and that is why we plan for it long before we ever reach those days of supposed rest.

Transition to Retirement

We are expected to save the bulk of our funds that we will need for transitioning into retirement ourselves. At the same time we hope to have worked hard enough and earned enough to have bought a home, raised a family, and lived a comfortable life along the way. What is happening to many people now is they live beyond their means and amass a fortune in debt. They live off of what they expect to earn over the expanse of their lives. This has created a problem for those that take on too much debt and when retirement age comes around, they still have to make debt payments. Then they have to keep on working as long as possible.

There are also many people that decide to continue working because they enjoy their jobs and the lives they have built around their careers. Deciding to work beyond the usual retirement age allows a person to transition to retirement without having to make big changes in lifestyle or quality of life. The transition to retirement can be done with ease if you have planned well and saved enough to be able to cover your cost of living for your retirement years. Even working part time can still provide a supplementary income while offering a social interaction that can be hard to come by otherwise.

Retirement today means something different for those who are facing the transition to retirement now and those who first experienced it over a hundred years ago. Working past retirement age can be for fun or for necessity but planning ahead and not living beyond your means is the smartest way to be able to make the choice of how your transition to retirement will be. Keeping a clean credit file and not taking on too much debt over your lifetime is the best way to have a clean retirement and make it your own way.

Share this post

Share on facebook
Share on google
Share on twitter
Share on linkedin
Share on pinterest
Share on print
Share on email