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Retirement | | 2 min read
Retirement means different things to different people. For some, it’s a chance to finally slow down, spend time in the garden, or enjoy the company of grandkids.
But that’s not for everyone, and if you’ve ever dreamt of a beach escape, a tree change, or just a dramatic shift in scenery then retirement is the perfect opportunity to sell up and live that lifestyle.
Here’s the good news. If you’re willing to explore options beyond the big cities, it can be surprisingly affordable. And the Downsizer Contribution scheme can help.
Ready for a change?
We all know that where you live affects your daily expenses. But when it comes to retirement planning, it’s worth highlighting just how big an impact location can have on your budget.
A beachside lifestyle that consists of long walks, local cafés, and outdoor activity can keep you busy without breaking the bank. A relaxed country life can provide similar opportunities.
So where are these cheap beach escapes and charming country towns? Before we get into that it’s worth mentioning the Downsizer Contribution scheme, and how it can help you fund a better retirement.
Downsizer Contribution scheme
In 1980, the median house price in Melbourne was around $40,000. In Sydney it was just short of $70,000.
Adjusted for inflation, that’s equivalent to around $210,000 in today’s money for Melbourne. $370,000 for Sydney. Clearly, house prices have outstripped inflation. In fact, the median prices in 2024 were just north of $1 million for a house in Melbourne and $1.6 million in Sydney.
If you’re a retiree who was able to get into the property market back in the day this presents a rare opportunity.
Many older people now find themselves living in large, multi-bedroom homes that no longer serve their needs. The kids have often moved out, and the house can feel like more of a maintenance burden than an asset.
Here’s where the Downsizer Contribution Scheme can make a big difference. If you’re aged 55 or over and sell your family home, you can contribute up to $300,000 (per person) into your superannuation. This applies even if your super balance exceeds the $1.9 million cap.
What does this mean in practical terms? Let’s say you're living in a typical Melbourne's suburb with a median house price of $1 million. You could sell your family home, top up your superannuation, and use the remaining funds to downsize to a more affordable home, or even relocate to somewhere more suited to your retirement dreams.
Affordable retirement destinations in Australia
So, where can you find that dream retirement lifestyle without breaking the bank?
Here are a few ideas to inspire you, (based on February 2025 prices).
- Geraldton (WA). A coastal city in the mid-west region of Western Australia, Geraldton offers endless beaches, a major seaport, a local population of around 38,000 and a median house price of about $420,000.
- Port Lincoln (SA). Located on the Eyre Peninsula, Port Lincoln is a tourism hub with a thriving agricultural industry. The town has a population of 26,000 people and a median house price around $490,000.
- Ballarat (VIC). For those craving a tree change, Ballarat offers lush green landscapes and country charm, with a median house price of about $570,000. This old gold mining town has a population of 110,000, offers close proximity to Melbourne, and has a thriving arts scene.
- Windale (NSW). Located just outside of Newcastle, Windale has easy access to the Australian coastline, lake Macquarie, and various national forests. Median house prices are about $630,000 and you can be in Sydney in under two hours.
- Hervey Bay (QLD). Known for its year-round sunshine, this popular retirement destination offers homes at a median price of $680,000, while units are about $490,000. A relaxed sea change spot, it combines mild weather with a welcoming community for retirees seeking a more affordable lifestyle.
How to downsize for retirement
Australia is a vast and diverse land, offering countless opportunities for a fresh start in retirement. With the right combination of your superannuation, the equity from your family home, and government support, you can live a retirement that fits with your lifestyle goals.
Taking the first step toward a new retirement plan can feel overwhelming, but it doesn’t have to be. Chatting with one of our financial planners can help you map out your future and make your retirement dreams a reality.
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