Chris Strano, founder and CEO of Super Guy, identifies five major mistakes frequently encountered in retirement planning. Understanding these errors and how to address them is crucial for a secure financial future post-retirement.
The first common error involves working longer than necessary. Many retirees miss out on enjoying their early retirement years due to over-cautious financial planning. Strano emphasises the importance of reassessing financial needs with professional guidance to avoid unnecessary additional years in the workforce.
Another critical mistake is not optimising superannuation contribution strategies in the final working years. Several types of contributions can be leveraged, including salary sacrificing and spousal contributions. Each person's strategy should be tailored to their individual circumstances, such as taxable income and super balance, to maximise tax efficiency and superannuation growth.
Investment risk is another tricky area. Strano advises that individuals should only assume as much risk as necessary to achieve their financial objectives. Balancing risk with expected returns and one's comfort level is essential to maintaining financial stability during retirement.
Ignoring inflation is also a significant oversight. Inflation diminishes purchasing power over time, necessitating a careful consideration of investment returns that can offset these effects. Failing to factor in inflation can lead to insufficient savings as the cost of living inevitably rises.
Finally, not accounting for the age pension can be another blind spot in retirement planning. While immediate eligibility at age 67 may not be possible for everyone, the age pension often acts as a crucial financial supplement in later years as personal savings deplete.
As Australians prepare for retirement, understanding and avoiding common mistakes can enhance financial security. Engaging with financial advisors and utilising online tools can provide clarity and guidance tailored to individual needs. The evolving landscape of retirement planning underscores the importance of staying informed and adaptable to policy changes, ensuring that Australians can enjoy a comfortable and fulfilling retirement.
Published: Tuesday 9th December, 2025
Last updated: Tuesday 9th December, 2025
Please Note: If this information affects you or is relevant to your circumstances, seek advice from a licensed professional.
