For many Australians, retirement can feel like a distant milestone -until suddenly, it’s not. We meet with people all the time who are within five to ten years of retiring but haven’t put enough thought into what life after work will actually look like. The result? Missed opportunities, unexpected tax bills, and a retirement that doesn’t quite live up to the dream.
Here are the most common retirement planning mistakes we see – and the key actions you need to take now to avoid them.
Mistake 1: Leaving It Too Late
The Reality: Many Australians wait until they’re on the brink of retirement before seeking financial advice. By then, the options for growing super, reducing tax, or restructuring assets are limited.
What You NEED To Do:
Start early. Ideally, begin serious retirement planning in your 40s or 50s. If you’re already in your 60s – don’t panic -it’s not too late to optimise what you’ve built. But don’t delay any further. The earlier you engage a financial planner, the more strategic your retirement plan can be.
Mistake 2: Underestimating How Long Retirement Lasts
The Reality: With Australians living well into their 80s and 90s, your retirement could span 25–30 years or more.
What You NEED To Do:
Make sure your retirement income strategy accounts for longevity. This includes having enough growth assets to outpace inflation, while still maintaining a level of income certainty. A good retirement plan blends stability with sustainability.
Mistake 3: Relying Too Heavily on the Age Pension
The Reality: While the Age Pension provides a safety net, it’s not designed to fund a comfortable lifestyle -especially if you want to travel, support grandchildren, or enjoy hobbies.
What You NEED To Do:
Treat the Age Pension as a supplement, not your primary income stream. Building up superannuation, downsizing assets wisely, or generating passive income through investments will give you more flexibility and control.
Mistake 4: Ignoring Tax and Centrelink Strategy
The Reality: Failing to structure your finances properly can lead to higher tax bills or ineligibility for government support.
What You NEED To Do:
Work with a qualified financial planner to create a retirement strategy that considers the tax implications of your income streams, asset ownership, and Centrelink entitlements. With the right planning, you can legally minimise tax and maximise benefits.
Mistake 5: Not Having a Clear Picture of Retirement Life
The Reality: Many people plan the financial side, but not the lifestyle side. Then they retire… and feel lost.
What You NEED To Do:
Think beyond the numbers. What will your day-to-day look like? Do you want to travel, volunteer, help raise grandkids, or work part-time? Align your financial plan with your life goals—so your money enables the retirement you actually want to live.
Download the guide below:
Take Control Today – You Won’t Regret It
Retirement shouldn’t be a time of uncertainty – it should be a time of freedom. But that freedom only comes with planning. At Financial Framework, we specialise in helping Australians retire with confidence, clarity and purpose.
Let’s work together to build your retirement roadmap – so when the time comes, you’re ready.
Disclaimer: This information is general in nature and does not constitute financial advice. It has been prepared without taking your objectives, financial situation, or needs into account. You should consider the appropriateness of this information with regard to your personal circumstances. Financial Framework makes no warranties as to the accuracy or completeness of the information and will not be held responsible for any loss incurred as a result of decisions made based on this article.
