‘Silver gypsy’ who used her super for a lap of Australia bucks retirement trend

While many retirees fear they will run out of money, a self-proclaimed “silver gypsy” is bucking the trend.

At the age of 71, former teacher Sally Van Bavel withdrew $130,000 from her modest retirement balance, bought a 4WD and campervan and set off for an eight-month tour around Australia.

“When I was a little younger, I always had the desire to travel around Australia by road, so when it came to retirement age and I was single, I chose to pursue that dream,” he said.

Ms. Van Bavel says she was able to achieve her retirement goals with a carefully structured plan and some help from her retirement fund.

“Whenever I need information I can get support from my super fund,” he said.

“For example, although I don’t ask for financial advice when selling the caravan, I do get some contribution information on whether I can put the money back into the pension fund.”

After a nine-day trial run in South Australia, Ms Van Bavel toured Queensland in 2022, spending two months in Tasmania before embarking on the “big road trip” in 2024.

“I went west in February and spent eight months on the road traveling around Australia,” he said.

“I’ve been lucky, I’ve had a few heart-in-my-mouth moments, but I’m pleased to say I’ve proven to myself that I can solve problems.”

When it comes to retirement, Ms. Van Bavel has a simple philosophy.

“I live for today rather than tomorrow because one does not know what is around the corner, both metaphorically and physically,” he said.

“So I’m enjoying my money. There are a lot of possibilities of health problems that can arise, so I was determined to make the most of what I wanted to do in my early retirement.”

However, he had to cancel his trip to Lake Eyre due to skyrocketing fuel prices.

“I was going to fly over Lake Eyre, but since my car is diesel, I had to completely suspend this journey,” he said.

“When unforeseen circumstances impact one’s plan, it’s important to go with the flow.

“It would be financially foolish to spend the money on diesel, especially when I can get there and there’s no diesel to get home.”

The next chapter, he says, “looks like me selling the ‘rig’ and recouping my retirement benefits before I turn 75.”

“I want to do volunteer work – especially tutoring – because the teaching profession is where I spent my whole life,” Ms. Van Bavel said.

Making the most of recent years

Ms Van Bavel is just one of a growing number of Australians who are becoming more educated about the benefits of their retirement.

NGS Super financial planner Toby Perkins says one of the key benefits of retirement is that it gives members flexibility.

“As people look forward to retirement, travel and lifestyle is a recurring theme for retirees,” he told NewsWire.

“So there hasn’t necessarily been a change in people’s retirement goals, but there’s generally a greater understanding these days that retirement and retirement can be flexible, and as a result some people are changing their expectations.”

But Mr. Perkins points out that anyone like Ms. Van Bavel who wants to front-load their retirement could face running out of money.

“How long until retirement is a complex concept as it depends not only on investment returns and the income one earns, but also potential casual/part-time work, potential age pension or Centrelink support, a partner’s circumstances and health and future lump sums available for investment (e.g. from inheritance or downsizing),” he said.

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Front-loading spending early in retirement requires understanding the consequences, Mr. Perkins says.

“Because retirement planning has so many options and can be so complex, it is always a good idea to seek financial advice or guidance to ensure you understand all the possibilities available before making your decisions,” he said.

Retirement wealth doubled

As Australians like Ms Van Bavel look to make the most of their retirement, new figures from the Super Member Council show middle Australians will continue to benefit from rising retirement balances.

According to the report, between 2002 and 2022, the non-housing wealth of middle-income retirees increased by 196 percent.

In other words, middle-wealth retirees are now $256,000 better off in retirement.

As a result, more Australians are entering retirement with increasingly higher levels of pension income, providing them with higher standards of living and more income as retirees and relieving pressure on government budgets.

Misha Schubert, president of the Super Members Council, said the thirty-year retirement period allowed members to benefit from the country’s economic growth and changed the wealth trajectory of millions.

“Owned by millions of Australians, super savings are now one of Australia’s most important economic institutions, boosting retirees’ retirement incomes, reducing pressure on budgets and supporting long-term growth and stability across the economy,” he said.

“As more Australians rely on super than ever before, it is critical to keep policy settings strong and secure – because the future incomes of ordinary Australians depend on it.”