5 Retirement Mistakes You Can't Afford to Make!
Ready to retire without the stress? Discover the 5 most common mistakes people make when planning for retirement—and how you can avoid them. From working too long to overlooking inflation, learn how to set yourself up for a comfortable and secure retirement. Don’t miss these essential tips!
1. Working Too Long
One of the most common retirement planning errors is working longer than necessary. A lot of people, when planning their retirement, assume they need to work longer than they actually do. They’re too conservative and never take the time to assess if they could retire earlier. The reality is, your 60s could be some of the best years of your life—don’t waste them working longer than you need to!
2. Not Maximizing Your Super Contributions
As you near retirement, it’s crucial to focus on your superannuation contributions. Increasing your super can help reduce your taxes, both now and in the future. Whether through salary sacrifice or after-tax contributions, there are different ways to top up your super. Figuring out the best strategy depends on your unique situation, such as your income, retirement date, and whether you're single or part of a couple.
3. Misjudging Investment Risk and Return
You want to make sure you’re taking the right amount of investment risk for your retirement goals. It’s tempting to compare your super balance to what others are earning, but remember, everyone's situation is different. Focus on what you need to reach your retirement goals, and keep your risk level in line with the returns you're aiming for. A balanced portfolio with the right mix can help grow your super without exposing you to unnecessary risk.
4. Overlooking Inflation
Inflation is something people often forget when planning for retirement. The cost of living goes up every year, so what $60,000 buys today might only get you $50,000 worth of goods in 10 years. Bank accounts and term deposits won’t keep up with inflation, so it’s important to ensure your investment strategy includes growth to outpace it.
5. Ignoring Social Security
Some people wrongly assume that their retirement savings alone will cover all their expenses, without factoring in government support like
the Age Pension. This is a huge mistake. The Age Pension can provide a valuable income boost in your later years, even if you're not
eligible for it immediately. Planning without considering the Age Pension means you might end up working longer than needed, missing out on
your best retirement years.
The Biggest Mistake Retirees Make
By far the biggest mistake you can make is not properly planning your retirement. Many people don’t realize the importance of a comprehensive retirement plan that considers your super contributions, investment risks, and the longevity of your retirement income. While retirement planning can seem overwhelming, getting professional advice can give you a head start and help you avoid costly mistakes.
Would you perform surgery on yourself or build your house without professional help? The same logic applies to retirement planning. We
can help you avoid major financial missteps that could impact your retirement years. Don’t take chances—ensure you have a clear plan
in place by contacing us today.
Chris Tolevsky has over 30 years experience in the medical and allied health fields. He provides expert guidance on tax strategies,
building and protecting wealth . If you’re interested in discussing how we can help you please book a complimentary
consultation.
Disclaimer: This article contains general information only . It is not designed to be a substitute for professional advice and does not
take into account your individual circumstances, so please check with us before implementing this strategy to make sure it is suitable