Money
All the reasons why being 60 and older is a good thing
Sure, the bod’s a bit creakier and the patience a little thinner, but otherwise turning 60 is a super positive thing. Here are the many reasons to celebrate turning 60 and getting older.
By Bron Maxabella
Don’t let anyone ever tell you that turning 60 isn’t a good thing. In fact, it’s a great thing.
We might have a few more health issues and a lot less patience, but generally the older we get the more life improves. Plus, there’s a bucket load of free stuff available if you know where to look.
Here are 11 of the reasons why being 60 and older is a good thing. You might know of many more, so please share your thoughts. That’s another good thing – we really do get wiser as we get older.
1. You can finally access your super
For many of us, our super will be the most money we ever have access to, so turning 60 is a very big deal – it’s the superannuation preservation age for anyone born after 30 June 1964. Click here to find your preservation age if you were born before that date.
Gaining access to our super means retirement for some of us, or at least starting to talk more seriously about when we’d like to retire. Starting down the retirement road is a huge mindset shift with financial, emotional and social considerations. While daunting, it’s also an incredibly exciting time in life and one to embrace wholeheartedly.
While you might not be ready to retire just yet, turning 60 means you can potentially access a Transition to Retirement (TTR) pension. This allows you to use your super to reduce your working hours, freeing up paid work time to do more of the things you love.
Find out more about TTR here: The secret superannuation strategy that will maximise your retirement income.
2. You have an increased sense of purpose
Let’s leap straight into one of the emotional benefits of being 60 and older, because it’s closely related to being able to access your super in a way you might not have thought of.
Many people over 60 report a renewed focus on life goals and purpose. This may be due to the many options that are suddenly open to you that might have felt closed before. Your children (if you have them) are older and independent at this stage – and if they’re not fully independent, they are certainly on their way to becoming so.
You are now also able to access the superannuation you have accumulated over your working life and theoretically retire if you’re comfortable. While most people will delay that retirement for a multitude of reasons (perhaps to accumulate more super or continue working simply because you like it a lot), knowing you have the option forces you to consider your life’s purpose in a way you may not have faced before.
This is a good and healthy thing. Research supports that a sense of purpose contributes to physical and mental health, enhancing resilience and reducing feelings of isolation. No wonder many of us feel more content at 60 and older than we ever have before (mind you, that happiness tapers off as we become older than 75 and our health deteriorates, so do consider that in your planning!).
3. You can likely get a Seniors Card
While many of us dread turning “old enough” to qualify for a Seniors Card, we really should turn that frown upside down. The card is a no-effort way to save money on everything from travel to shopping to attractions to healthcare to everyday bills. It’s not a burden to turn 60, I tell you, it’s a gift!
Click here to see some of the many privileges of being a Seniors Card holder - don’t miss it.
To see if you can get access to this little gem as soon as you turn 60, here’s the state-by-state breakdown for full card eligibility:
- Age: 60 years or older.
- Work: No more than 20 hours per week (averaged over 12 months).
- Residency: Permanent resident of NSW.
- Age: 60 years or older.
- Work: No more than 35 hours per week.
- Residency: Permanent resident of Victoria.
- Age: 65 years or older (or 60 if you hold an applicable concession card)
- Work: Less than 35 hours per week.
- Residency: Permanent resident of Queensland, living there for at least 6 months of the year.
- Age: 65 years or older.
- Work: Less than 25 hours per week.
- Residency: Permanent resident of WA.
- Age: 60 years or older.
- Work: Fewer than 20 hours per week (averaged over a 12 month period for part-time and casual work).
- Residency: Permanent resident of South Australia.
- Age: 60 years or older.
- Work: No more than 20 hours per week.
- Residency: Permanent resident of Tasmania.
- Age: 60 years or older.
- Work: You must work no more than 20 hours per week.
- Residency: Permanent resident of the ACT.
- Age: 60 years or older.
- Work: You must work fewer than 20 hours per week.
- Residency: Permanent resident of the Northern Territory.
4. You might be able to get a Commonwealth Seniors Health Card
A Commonwealth Seniors Health Card (CSHC) is for those who are Age Pension age but don’t qualify for the Age Pension due to income or assets exceeding the limits. Age Pension age is 67 years for anyone born on or after 1 January 1957 – see here if you were born before 1957. So if you’ve just turned 60, you will have to wait a while for this one.
It’s worth the wait, though. The CSHC can significantly reduce your healthcare costs, especially when it comes to discounted prescriptions under the Pharmaceutical Benefits Scheme (PBS). You may also be eligible for bulk-billing with your GP (this is at their discretion) and a lower Medicare Safety Net. You can find out all of the CSHC benefits here.
Note that you don’t necessarily have to qualify for the Age Pension in order to get a Health Card – it has its own set of conditions to meet. You can check all eligibility requirements here.
5. You might also qualify for a Pensioner Concession Card
If you qualify for the Age Pension, you can probably get the Pensioner Concession Card too. It’s also available to a wide range of pension recipients and those receiving other government benefits – click here to see the full list.
This card offers many benefits beyond that CSHC (see above), including discounts at Australia Post and free hearing assessments and hearing rehabilitation.
6. You’re probably happier than you’ve ever been
Okay, so if you’re currently feeling depressed or even just a little down, skip this one. There’s nothing worse than being told that statistically you’re more likely to be happy post your 60th birthday when you’re personally not feeling it.
The fact remains that in Australia you are more likely to be happy at the age of 60 and older than you were when you were younger.
“[Individuals] over 55 no longer have unrealistic expectations of what their life will be like and simply enjoy their reasonable health and wealth, leading to a marked surge in happiness,” Dr Tony Beatton, BEST Fellow at the Centre for Behavioural Economics, Society and Technology told the University of Queensland.
Other factors that make us happier at this age include experiencing less regret as we get older, being better at regulating emotions, caring less about what others think of us, and improved social relationships.
“Contrary to negative stereotypes of ageing, late life is a time of relatively stable and high levels of wellbeing,” Susan Charles, professor of psychological science at UCI told the UCI School of Social Ecology. “With older age, people focus more on the present and less on planning for the future, and this mindset is one possible explanation for high levels of wellbeing later in life.”
Dr Charles noted that older adults generally report greater satisfaction with their close friends and family members and have relatively stable levels of wellbeing over time.
But do make the most of it as people are happiest between 55-75 and things go rapidly pear-shaped after that. “As their health starts to deteriorate after 75, their happiness plunges,” said Dr Beatton.
7. You can make a downsizer super contribution
This one actually activates when you turn 55, but we won’t let that stop us from mentioning it here. If you’re considering downsizing (or any kind of move), you’re most likely eligible for this generous tax break.
Basically, if you’ve lived in your home for more than 10 years then sell up, you can contribute up to $300,000 from the proceeds of the sale into your super fund. If you’re a couple, you can each make the contribution – so that’s a $600,000 non-concessional contribution that doesn’t count towards the usual contribution cap.
Of course, that $300,000 or $600,000 needs to come from the proceeds of the sale. If your home sells for less than that, you can only make a downsizer super contribution up to the value of what your home sold for.
You can find out more about this on the ATO website and it’s a good idea to get professional financial advice to make the most of this opportunity.
8. You can move to a retirement village
Another one that starts at 55, but worth noting for sure. While the words “retirement village” may freak you out a little, fear not. Today’s communities are nothing like the “old people’s homes” of yore. Instead, think “resort living” and you’re getting close.
Find out more: Is a retirement village right for you? 7 questions to ask yourself
While they do get a lot of negative press, people who live in these kinds of villages are vocal about loving them.
“[We] don't regret the decision at all. So much to do that we have to plan rest time otherwise it is go, go, go…,” says Neil on a public Grey Nomads forum. “Yards maintained, motorhome secure parking, gated community and close to medical facilities. What more do we want?”
Russell, on the same forum, feels similar: “There are no colourbond fences to hem you in and plenty of green zones and gardens to wander around in also… We have never had so many friends as we have now. I could go on and on but won't bore you anymore.”
9. You’re at your crystallised intelligence peak
While “fluid intelligence”, or the ability to reason and think flexibly started to decline many years ago (sometime around 20 years old), “crystallised intelligence”, or cognitive abilities that depend critically on what you know, is only now gearing up – it peaks around age 65.
This is one possible explanation as to why puzzles and Scrabble become so much more interesting in later life – we’re simply better at solving them. We’ve accumulated more experience and education and processed more facts and information to develop expertise.
Interestingly, people with higher crystallised intelligence tend to do better academically. So these later years might be the right time to go to university, take on a new qualification or learn a new skill.
Try this: 10 of the best apps to help you learn a new skill
10. You’ve built up a truckload of equity
This one isn’t for renters (although there’s positive news for you too), but if you own – or almost own – a home, listen up. Even if you haven’t fully paid off your mortgage, you can still access the equity you’ve built up. Which means you’ve got a pool of money available to enhance your lifestyle in any way you choose.
Always dreamed of travelling the world? Now’s your chance. Want to set the kids up with a home deposit of their own? You can do that. Fancy doubling your monthly income for a while? Get on board.
There are a variety of ways you can tap into your home’s equity. Downsizing is one (see above), but moving is just one option. Here are 5 more ways you can tap into the hard work you ploughed onto your mortgage over the years:
- The government’s home equity access scheme
- Opening a line of credit with your current lender
- Refinancing your mortgage with a cash-out option
- Using a redraw facility on your current loan
- Taking out a commercial reverse mortgage
More here: How reverse mortgages and the home equity access scheme compare
11. You have more time to enjoy life now
There’s no denying that we all have more time to ourselves in these later years. The kids are more independent, we’re less likely to be climbing the corporate ladder, we can often afford to buy in help with housework and maintenance, and life is generally more streamlined as we shuck off the things that haven’t worked for us and embrace more of the things that have.
It’s been found that older people generally have fewer obligations from work or family. As a consequence, we have more leisure time, spend more time volunteering, spend less time doing housework (probably because after decades of experience we are so efficient at it) and, perhaps best of all, we spend more time eating.
What’s not to love about that?
Feature image: iStock/RgStudio
You might also like:
- Unlock your entitlements: 12 amazing benefits for older Australians
- 8 surprising benefits of your Medicare card
- The surprising benefits of private health insurance for Australians
This article reflects the views and experience of the author and not necessarily the views of Citro. It contains general information only and is not intended to influence readers’ decisions about any financial products or investments. Readers’ personal circumstances have not been taken into account and they should always seek their own professional financial and taxation advice that takes into account their personal circumstances before making any financial decisions.