Source : Perth Now news
While many retirees fear they will run out of money, a self-proclaimed “silver gypsy” is bucking this trend.
At age 71, former schoolteacher Sally Van Bavel withdrew $130,000 from her modest superannuation balance, bought a 4WD and camper and set off for an eight-month lap around Australia.
“When I was somewhat younger, I always had the desire to travel around Australia by road, so when it came to retirement age and I was single, I chose to continue with that dream,” she said.
Ms Van Bavel says she was able to achieve her retirement goals through a carefully structured plan and a little help from her super fund.
“Whenever I’ve needed information, I’ve been able to get support from my super fund,” she said.
“While I don’t ask for financial advice, for example, when I sell the RV, I’ve been receiving some contributing information as to whether I can put the money back into super.”
After a nine-day trial run in South Australia, Ms Van Bavel travelled through Queensland in 2022, spent two months in Tasmania before having the “big trip” in 2024.
“In February, I headed west and spent eight months on the road travelling around Australia,” she said.
“I was fortunate, I had a few moments when the heart went into the mouth, but I am pleased to say I have proved to myself that I can problem solve.”
Ms Van Bavel has a simple philosophy when it comes to her retirement.
“I live more for today than tomorrow because one doesn’t know what is around the corner both metaphorically and physically,” she said.
“So I am enjoying my money. There are so many possibilities of health issues that could crop up, so I was determined to make the most of what I wanted to do early in my retirement.”
But she did have to cancel a trip to Lake Eyre due to skyrocketing fuel prices.
“I was going to fly over Lake Eyre, but because my vehicle is diesel I had to put that trip completely on hold,” she said
“When unforeseen circumstances impact one’s plan, it is important to go with that flow.
“It would just be financially silly to spend the money on the diesel, especially when I might get up there and there’s no diesel to get home again.”
She says the next chapter “looks like me selling my ‘rig’ and recouping the superannuation” before she turns 75.
“I wish to do volunteer work – in particular tutoring – because the teaching profession is where I spent all my life,” Ms Van Bavel said.
Getting the most out of the latter years
Ms Van Bavel is just one of a growing number of Australians who is becoming more educated on the benefits of their superannuation.
NGS Super financial planner Toby Perkins says one of the key benefits of superannuation is it offers flexibility to members.
“Travel and lifestyle is a recurring theme for retirees, as people look ahead to retirement,” he told NewsWire.
“Therefore, there has not necessarily been a change in people’s retirement goals, but there is generally more of an understanding these days that retirement and super can be flexible, and some people are changing their expectations as a result.”
But Mr Perkins points out anyone similar to Ms Van Bavel who wants to frontload their retirement may run of simply running out of money.
“How long super is going to last through retirement is a complex concept as it depends not just on the investment returns and income that someone draws, but on potential casual/part-time work, potential age pension or Centrelink support, a partner’s situation, health, and future lump sums that are available to invest (e.g. an inheritance or from downsizing),” he said.
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Mr Perkins says front-loading spending early in retirement does require understanding of the implications.
“Because planning for retirement has so many options and can be so complex, it’s always a good idea to seek financial advice or guidance to ensure you understand all the possibilities available before making your decisions,” he said.
Superannuation wealth doubles
As Australians like Ms Van Bavel look to get the most out of their retirement, new Super Member Council figures show middle Australians will continue to benefit from rising superannuation balances.
Between 2002 and 2022, non‑housing wealth for middle‑wealth retirees grew by 196 per cent, according to the report.
In other words, middle-wealth retirees are now $256,000 better off in retirement.
As a result, more Australians are now entering retirement with increasingly significant levels of super, delivering them higher living standards and more income as retirees and easing pressure on government budgets.
Super Members Council chief executive Misha Schubert says three decades of superannuation has allowed members to benefit from the nation’s economic growth and changed the wealth trajectory of millions.
“Those super savings owned by millions of everyday Australians are now one of Australia’s most important economic institutions – lifting retirement incomes for retirees, reducing pressure on budgets, and supporting long-term growth and stability across the economy,” she said.
“With more Australians relying on super than ever before, keeping the policy settings strong and secure is critical – because the future incomes of everyday Australians depend on it.”
