Retirement in Perth should be a time to relax and enjoy the rewards of your hard work, but without the right planning, you could find yourself financially unprepared. From missing out on government benefits to underestimating living costs, small mistakes can have a big impact on your financial security. The good news? With the right strategies in place, you can avoid these pitfalls and enjoy a comfortable retirement.
At LIFE Financial Planners, we help you navigate the complexities of retirement planning, ensuring you make informed decisions that maximise your income and secure your financial future. Below, we outline some of the biggest mistakes to watch out for and how you can avoid them.
Waiting Too Long to Start Retirement Planning
The Age Pension is designed to support older Australians by supplementing retirement income, yet many retirees delay applying, often assuming they won’t qualify or should use it as a last resort. Delaying means missing out on compound interest, tax-efficient contributions, and potential government benefits. The earlier you start, the better prepared you’ll be.
What to Do Instead:
- Start contributing to your superannuation early; even small amounts add up over time.
- Consider salary sacrificing to boost your retirement savings while reducing taxable income.
Your Age Pension age depends on your birthdate:
| Your Birth Date | Age Pension Age |
| 1 July 1952 – 31 Dec 1953 | 65 years, 6 months |
| 1 Jan 1954 – 30 June 1955 | 66 years |
| 1 July 1955 – 31 Dec 1956 | 66 years, 6 months |
| On or after 1 Jan 1957 | 67 years |
Underestimating How Much You’ll Need
Many retirees assume their expenses will decrease in retirement, but rising healthcare costs, inflation, and lifestyle choices can quickly eat into savings.
What to Do Instead:
- Account for inflation; what costs $50,000 per year now might require $80,000 in 20 years.
- Have a buffer for unexpected expenses, such as healthcare and home maintenance.
- Read the ASFA Retirement Standard
Forgetting to Apply for Concession Cards
The Mistake:
Many retirees in Perth qualify for concession cards that provide discounts on medical expenses, utilities, public transport, and more, but they never apply.
How to Avoid It:
Check if you’re eligible for benefits such as the Commonwealth Seniors Health Card via Services Australia. These cards can significantly reduce your expenses and ease financial pressure in retirement.
Failing to Maximise Your Superannuation
Your superannuation is one of your most powerful retirement tools, yet many people don’t make the most of it. Without proper planning, you might miss out on employer contributions, government co-contributions, or strategic investment options.
What to Do Instead:
- Check if you’re eligible for the co-contribution scheme to boost your super (internal link).
- Consider transitioning to a self-managed super fund (SMSF) if it aligns with your financial goals.
- Regularly review your super investment strategy, with our dedicated retirement planning, who can help support your goals.
Withdrawing Your Superannuation Too Quickly
Once you retire, you’ll need to decide how to access your super. Many retirees withdraw a lump sum, only to find their savings dwindle faster than expected.
What to Do Instead:
- Set up a retirement income stream instead of withdrawing everything at once (internal link to drawdown strategies).
- Work with a financial planner to develop a sustainable withdrawal strategy.
Overlooking the Age Pension and Other Benefits
Many retirees assume they won’t qualify for government support, leaving money on the table. The Age Pension, Commonwealth Seniors Health Card, and other concessions can help supplement your income.
What to Do Instead:
- Check your Age Pension eligibility before you retire.
- Apply for the Commonwealth Seniors Health Card to save on medical costs.
- Consider a part-time job to take advantage of the Work Bonus scheme.
Not Factoring in Healthcare Costs
Medical expenses increase with age, yet many retirees don’t plan for rising health insurance premiums, medications, or specialist care.
What to Do Instead:
- Budget for increasing private health insurance costs.
- Consider long-term care insurance to cover potential aged-care needs.
- Set up a dedicated healthcare savings fund.
Mismanaging Investments in Retirement
A common mistake is shifting all investments into low-risk assets too early, limiting potential growth.
What to Do Instead:
- Maintain a balanced portfolio that considers growth, income, and liquidity.
- Consult with a financial planner to create a diversified investment strategy
- Regularly review your investment performance to ensure it aligns with your retirement goals.
Failing to Adjust Your Plan as Life Changes
Retirement isn’t static; your financial situation, health, and personal goals will evolve. Many retirees make the mistake of setting and forgetting their plans.
What to Do Instead:
- Schedule annual reviews with a financial planner to adjust your plan (internal link to book a review).
- Stay informed about superannuation changes, tax laws, and government benefits.
- Update your estate plan to ensure your wishes are honoured.
How LIFE Financial Planners Can Help
At LIFE Financial Planners, we help Perth residents navigate the complexities of retirement with tailored financial strategies. Our expert team ensures you stay informed about government benefits, investment options, and tax-efficient retirement income streams. Whether you’re just starting to plan or need to refine your existing strategy, we’re here to help you retire with confidence.
Let’s start planning for the retirement you deserve; contact our West Perth team today at (08) 9322 1882 to schedule your first complimentary consultation and take the first step.
PHONE 08 9322 1882