Who Is a Self-Funded Retiree or Non-Pensioner?

A self-funded retiree or non-pensioner is a person who has stopped working but does not receive regular money from the government, like the age pension. Instead, this person uses their own money or savings to pay for their living costs in retirement.

This money may come from:

• Superannuation (a special savings fund set up during their working years)
  
• Investments such as shares or rental property
  
• Personal savings in the bank

Since they do not rely on government payments to live, they are called non-pensioners.

How Does Being a Self-Funded Retiree Work?

Before retiring, many people save money throughout their working life. They may put money into superannuation accounts, buy property, or invest in businesses or stocks. When they retire, they use this money to pay for everyday needs like:

• Food
  
• Housing
  
• Medical care
  
• Travel
  
• Utilities and bills

Some self-funded retirees also use money made from interest or investment income to support their lifestyle. Because they saved enough or made smart money choices, they do not need help from government pensions.

Benefits and Challenges of Being a Self-Funded Retiree

Benefits:

• More control over money and lifestyle choices
  
• Less need to follow government rules tied to pension payments
  
• Often more financial freedom for travel or hobbies
  

Challenges:

• Must carefully manage money to make it last
  
• May not qualify for free or discounted services given to pensioners
  
• Needs to stay informed about taxes and money matters

Being a self-funded retiree means being independent in retirement. However, it also means taking responsibility for how long the money will last and being ready for extra costs, especially medical care as they get older.