Dear Vanessa,
I’m 58 years old, going through a divorce, and feeling really undecided about what to do. My husband has offered me the house as part of our agreement, while he keeps the survivor and some cash. I have loved living here for over 20 years and would be hard to let go. However, I am worried that I will not be able to cover the costs of my income as a nurse, especially as I approach retirement.
There is only a small amount left to pay on the mortgage and the value of the home has increased significantly over the past two decades, making it an attractive asset. Still, taking the house would mean I would only have the super I can earn for the next nine years before I retire, assuming my health holds up.
I also have a son who is grown and now lives interstate. I don’t want to sell the house and use all the money if it means he won’t receive any inheritance in the future.
I’m wondering if it would make more sense to downsize or maybe even rent for a while, but I’m not sure what’s best long term. I would be very grateful for any advice on how to approach this and whether it is worth leaving the family home.
Thank you,
Carol
Send your questions to leading money educator Vanessa Stoykov at thrivingafter50@dailymail.com.au
Noted money educator Vanessa Stoykov (above) advises Carol to evaluate the family home before making any other decisions.
Dear Carol,
First of all, it is essential that you take care of yourself. At 58, you still have a lot of life ahead of you, especially considering the average life expectancy for women in Australia is about 85 years. Your child would like to see you safe and well supported for years to come. Right now, the best thing you can do is focus on your own future stability so that any decisions you make can benefit both you and your family in the long run.
Start by looking at the numbers. The fact that your home has increased in value in 20 years is great news, especially when there is only a small amount left on the mortgage. Have you had it appraised recently? Knowing your current value can help you evaluate your options clearly and see the true financial picture.
Then think about where you would like to live. Could downsizing to a smaller house or apartment in a comfortable area be an option? Here’s my free tool to help you see what interest rate you might be eligible for: Get the best mortgage rate tool. This tool can give you a clearer idea of what a new place would cost in monthly mortgage payments, which can help you decide what’s manageable within your budget. It could also show whether it’s worth having some cash on hand for flexibility and a sense of security.
If you decide to downsize, consider using extra money to grow your super, which will be essential for retirement, while keeping some out of super to invest in your lifestyle and greater financial flexibility. This way, you’ll be creating a safety net both inside and outside of Super, giving you a balanced approach to managing your future needs. Investing wisely now will give you a greater sense of control and peace of mind as you prepare for retirement.
I highly recommend asking an independent financial advisor for help. They can provide you with personalized guidance to ensure you are making the best decisions for your future.
Divorce and moving can be incredibly stressful, but there is often a brighter, safer life on the other side. Thank you for writing and wishing you all the success and joy in the years to come. You still have plenty of time to enjoy life and prosper!
A cordial greeting,
vanessa