Money
I worked too hard all my life to keep saying no to good things in retirement
After 35 years running a successful boutique, Vivienne Cable thought her next chapter would be frugal. Instead, she unlocked her home equity and unlocked a whole new way of living.
By Bron Maxabella
“I’ve worked all my life,” says Vivienne Cable, with the kind of calm conviction that only comes from experience. “I’m still working now, actually – just 5 or 6 appointments a month. I help people with their wardrobes, then I end up helping with their interiors. We move a bed 6 inches, change a curtain and suddenly the whole room looks fantastic.”
Vivienne spent decades making other people look and feel their best. Her business, Image by Design, was a much-loved fixture in Sydney’s Chatswood for 35 years. As an image consultant, Vivienne helped generations of women feel confident in their clothes and their homes.
But when she (mostly) retired at 71, things took a turn she hadn’t expected.
“I had about $100,000 in super and I owned my home outright,” she says. “But I was terrified of having to take money out of super and watching it dwindle. I didn’t want to have to think about where money was coming from for things. What if I needed to change the car? What if I had to fix something in the apartment?”
So she did what many of us do: she started saying no.
Too many 'no’s'
At first, it was just small things. A holiday here, a dinner there.
“After a couple of years, I realised there were so many things I couldn’t do. I didn’t have much coming in and I didn’t yet qualify for the pension. Even though I’d sold my apartment for a decent amount, most of that had gone into buying the next place and paying out staff long-service. Then I got hit with a massive tax bill which made it even nastier.”
Still, Vivienne knuckled down. “Stuff it, I said. Pull your socks up.”
It wasn’t until she had a conversation with a financial adviser that she realised she had options.
“She said to me, ‘You can borrow a couple of hundred thousand from your home, and it doesn’t affect you until you sell or die.’ And I said, ‘Well okay, that sounds alright.’ That would give me a buffer.”
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Unlocking the dream
Vivienne’s adviser introduced her to Household Capital, and the idea of unlocking home equity.
“She explained it, and then she had someone from Household Capital come and talk to me. They put everything on paper, answered all my questions, and I fully understood what it was about.”
She looked into the government’s home equity access scheme too, but found it too limited. “The reverse mortgage was just much more accessible. I felt like even if I didn’t use it all, I’d have peace of mind. And at the end of the day, I’m either going to sell or die, right? It didn’t make a big difference to me.”
The most powerful thing wasn’t the money. It was the feeling of having choices again.
“I always made sure I had about $10,000 in an accessible account. I only drew down if I absolutely needed something big, like a holiday or a new car. I didn’t just go through it. I was careful.”
Spending on joy
What does financial freedom look like? For Vivienne, it looks a lot like marble and sage green linen.
“I bought myself the most gorgeous dining table, it’s marble – and beautiful dining chairs that wrap around you. They remind me of Chanel dressing gowns. Pale pickle green Shanelle, soft and divine. I also got sage green linen curtains. Just divine.”
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She’s also travelled – a lot.
“I went to Bordeaux to do an art course. Then I went to Provence with my son and daughter and son-in-law. Then I did a Danube cruise. Then I went on the Seine to Normandy. Then to Edinburgh. Then to the Jura region in Switzerland…”
And you bet she flew business class.
“I did business class one way to Edinburgh, and I got off the plane feeling fabulous. My whole family was crippled! So the next big trip is definitely business class both ways. It’s part of the holiday. You’ve earned it!”
Saying yes again
Unlocking her home equity didn’t just let Vivienne renovate and travel – it gave her peace of mind.
“I never knew I’d feel such relief when that money came through. It means that I can say ‘yes’ to a few more things, instead of ‘oh dear, wouldn’t it be nice…’. We work too hard during our lives to have to say ‘no’ all the time when we’re retired.”
Her children feel exactly the same.
“They said to me, ‘We’d be horrified if you were doing something for us instead of yourself. Because if you’re doing it for yourself, you’re saving us from doing it for you.’”
Vivienne laughs. “They go out for dinner a couple of times a week and I wasn’t even going out for lunch. Why shouldn’t I go out for a slap-up dinner now and then?”
Her advice? Use the spare room
Vivienne’s advice to others in her position is simple.
“I say, what if you had the money in the bank, what would you do? You’ve got a house with a spare room and you can unlock some of the value, and still have the room. And no one’s going to care, because it’s the end of your life. It doesn’t really matter.”
She pauses, then grins. “Why leave it for your funeral? You can have a fabulous 80th birthday party and invite everyone before you’re dead. Have a wonderful experience together, create memories.”
And just in case you’re wondering: no, she doesn’t feel guilty about unlocking some of the money in her home.
“What’s the fear? Do you feel like a naughty person because you’ve basically sold the spare room? Why not? What’s the alternative? Sitting in a dark house eating soup and being sensible forever?”
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Final thoughts from a stylish realist
“I’m not extravagant,” Vivienne insists. “But I do believe in living well. I’m not going to spend it all on handbags. But I am going to buy beautiful curtains, travel business class and go to art classes.
“And if I’m not feeling well, I can afford good medical [care]. I can afford to have someone help me. That makes all the difference.”
She adds: “If I didn’t have any money, I couldn’t just hop in the car and go help someone at Lifeline. I couldn’t fill up the tank and drive to an art class. It’s those everyday freedoms – the little things – that ultimately change your life.”
The information in this article reflects the views and experiences of Vivienne. Information is general in nature and is not intended to influence decisions about any products or services. This article does not take into account your personal circumstances, objectives or financial situation. Before acting on information in this article, please consult your professional or financial adviser to determine whether it is appropriate for your circumstances.
Citro may receive a referral fee for any products obtained from Household Capital.
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