How to budget for your social life in retirement

By Anthony Jones

July 13 2019
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Reaching retirement is a major milestone, and it is important to consider how you will budget for your social life once you enter this phase of life. You don’t want to give up the social life that you know and love from years of working. However, you will need to make some budget changes. These changes don’t necessarily need to be major and sometimes it helps to be creative.

AMP adviser, Anthony Jones says, “it will be important to consider what is on your agenda, such as how often you see yourself eating out or travelling”. Whilst it is important to think about living costs, utility bills, health care and even helping out the kids, it is also the time to set aside some money for your own recreation and social life.

How much are you likely to spend on recreation?

According to research from the Association of Superannuation Funds of Australia (ASFA), singles and couples (aged 65-85) living a comfortable lifestyle in retirement would spend about $180 - $270 of their weekly budget respectively on leisure and recreation. This considers a range of recreational activities including:

Dining out
Travelling
Movies, plays, sports
Streaming services
Club memberships

How can you budget for the things you enjoy?

Knowledge is power, so it’s essential to make sure you have a firm grasp on your finances, even more so when you’re approaching retirement. Everyone has different dreams for their retirement; it could be travel or something just as simple as spending time with your family. Knowing what you want in retirement and then linking this to your superannuation goals is the key to feeling in control.

However, for too many Australians approaching retirement age, this isn’t happening. As a result, many may find themselves short of cash in their retirement years, resulting in a super shortage. It’s not just about ‘getting by’ in retirement, it’s also about retiring with a lifestyle we aspire to, doing the things we love, which is where the issue lies.

AMP adviser Anthony Jones says that understanding what super shortage (if any) you have will allow you to proactively plan for your future. Taking the time to look at this in your 50s means you still have time to make any additional contributions you might need.

There are lots of great tools out there to help, such as AMP’s retirement simulator which can help you to work out what your annual retirement income might be, how long your money may last and what you can do to maintain your lifestyle when you retire. For Australians, this insight provides a useful tool to help meet their financial goals in retirement.

How to make your money go further for the things you love?

AMP adviser Anthony Jones says some practical tips for making your money go further for the things that you love include:

Make the most of your Seniors Card for things like transport concessions. It might seem like a small discount at the time, however this can add up over time and make a big difference.
If you love to travel but can’t afford it in your budget, you could consider a road trip interstate. Road trips are a great way to travel, allowing for greater flexibility. Plus in a country like Australia, there are plenty of amazing sites to see.
Keep an eye out for deals on sites like Happiest Hour which offer two for one deals on eating out.
Who doesn’t love a picnic? Pack a rug, basket of food and head to the park or beach for a picnic.
Instead of going out with friends regularly, invite them around and host a games night or dinner party.
Use sites like AirBnb or Booking.com to find cheap accommodation options if travelling. You could even list your own property on AirBnb for some extra cash as well.

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