fbpx

Financial Planning, Retirement Planning

4 Big Retirement Planning Mistakes to Avoid

May 25, 2021

Keeping Your Financial Future on Track to Retire on Your Terms.

Like any other major life change, a successful transition to retirement is all about careful consideration and planning.

Without a smart, informed plan – you may very easily fall into these far too common retirement planning mistakes which could be detrimental to your financial security in retirement.

Your retirement is a time where you deserve to sit back and start doing the things you really enjoy doing – whether that’s gardening, travelling, or enjoying more time with your family and friends.

But all that only comes after planning – and most importantly, avoiding pitfalls.

To avoid making retirement mistakes, you should be realistic about your future and finances. Unfortunately, it’s all too easy to make the wrong financial decisions when trying to prepare for retirement.

For many Australians, these wrong decisions can be destructive to their retirement goals.

Only 53% of couples and 22% of single people are on track to achieve a comfortable level of retirement1.

 

However, with the help of experienced financial planners at Cambio Group, you can feel confident and have peace of mind that your retirement plan is on track for success.

To get you started (or help you perfect your plan), here’s some of the most common retirement missteps to steer clear of.

 

Avoid these 4 Retirement Planning Mistakes so you can Enjoy Your Dream Retirement Without Financial Stress.

1. Not Taking Steps to Help Your Super Grow

Your superannuation fund is an incredibly important and valuable asset when it comes to your retirement plan.

You may like to know what options you have with your superannuation to prepare for retirement, as well as for when you are ready to retire.

It’s never too early to start making smart decisions and changes to your superannuation strategy to maximise your growth.

The ATO highlights the following steps to consider to actively grow your super2:

  • a salary sacrifice arrangement with your employer
  • making your own personal contributions
  • checking if you’re eligible for government contributions
  • transferring money from foreign super accounts.

Find out more about how you can get your super working harder for you.

2. Neglecting to Save Earlier

Starting early with your retirement plan is key to financial success.

Many Australians don’t give their retirement plan a second thought until it’s too late to start your plan.

In fact, around 54% of Australians do not give retirement savings serious thought until they are 50 or over3.

Unfortunately, the money doesn’t just appear when you need it.

Some experts suggest that you should save at least 10% to 15% of your total income to put into your retirement savings4.

A plan and a budget will help you understand how much money you will need and outlines steps to reach your goals.

3. Leaving all Your Money in the Bank

While it’s important to have short-term access to enough cash for your living expenses and emergencies, the bank is not necessarily a great way to grow your money.

You may like to explore investment opportunities that will let your money do the hard work for you.

Investments like shares and property generate capital growth over the long-term.

Learn more about investing to grow your savings for retirement.

4. Not Having a Plan and Not Seeking Advice

The biggest mistake you can make when preparing for retirement is to not have a plan altogether and not seek help from professionals.

When it comes to your retirement plan, you should never go it alone.

Failing to seek advice from a qualified financial advisor can leave you unaware of the opportunities you may have, as well as any other mistakes you may have made along the way.

Nobody deserves to be worried about running out of money in retirement.

Cambio Group is experienced in developing comprehensive, tailored retirement plans that consider your:

  • Superannuation strategy
  • Investment Portfolio
  • Budget, cash flow, and retirement income/savings
  • Centrelink Entitlements – including the Age Pension

Take the next step towards your ideal retirement and seek support from a qualified financial advisor at Cambio Group.

If you want to enjoy retirement with peace of mind knowing there is a financial strategy to take care of the future, book a complimentary initial appointment with one of our Retirement Advice Specialists on the Gold Coast – Contact us here.

 

References

1 https://theconversation.com/the-majority-of-australians-are-not-saving-enough-for-retirement-24957
2 https://www.ato.gov.au/individuals/super/growing-your-super/
3 https://www.yourlifechoices.com.au/news/do-you-have-enough-for-retirement/#:~:text=According%20to%20a%20survey%20conducted,they%20are%2050%20or%20over.
4 https://www.investopedia.com/retirement/how-sabotage-your-retirement/#citation-2

 

Disclaimer: The information (including taxation) in this website does not consider your personal circumstances and is of a general nature only – unless otherwise stated. You should not act on the information provided without first obtaining professional advice specific to your circumstances.

  • Contact Us
    Today

A full compliment financial services group with 1 simple mission: to deliver positive change in the lives of our clients

For over 20 years we’ve been helping people like you make smart, informed business and financial decisions. We’re in this to make a difference, to help you avoid the common mistakes that prevent people from building a business and creating a life they truly love.

Restore direction in your life with a tailored financial plan from Cambio Group.

Book a Complimentary Consultation