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4 Retirement Planning Mistakes and How to Avoid Them

Retirement is the time to finally relax and enjoy life to the fullest. Once you're free of life's responsibilities, you'll be able to do the things you've always wanted to do, such as travel, pursue a hobby, or spend more time with family. How you live your life will be up to you for the rest of your life…

…Unless, of course, you lack the financial means to make the most of your golden years. If you are concerned that this will be the case, you can take some easy steps now to better your financial condition.

Here are some typical mistakes made by pre-retirees and retirees, as well as tips on how to prevent them.

Leaving All Your Money in the Bank

It pays to seek a more competitive return on your assets, whether you are a pre-retiree or a self-funded retiree. While having a safety net to handle the unforeseen is necessary, leaving significant sums of money in a bank when they might be doing so much more if invested elsewhere is almost criminal. As a result, it's a smart idea to look into annuities, term deposits, and topping up your super to make your money work harder for you.

Putting All Your Investments in One Basket

There are several strategies and options available when it comes to seeking the best investments for retirement. One of the most important aspects of a financially successful retirement is diversification. Investors should not limit themselves to a single investment portfolio—and it is often the riskiest option. Depending on your investment objectives, distribute your retirement portfolio's investments across the major asset categories of stocks, bonds, and cash equivalents.

Because asset categories typically do not correlate with one another, this is a smart concept. Long-term investment returns can be smoothed out by having the proper mix of assets across several categories.

Not Having a Plan for Retirement

Making retirement planning and saving a financial goal, especially at a young age, is critical. You may use budgeting for beginners as a saving tip to help you discover your costs and invest the remainder for your savings. Savings—no matter how modest or large—build over time and can have a substantial influence on your retirement plan once it is all accumulated. In retirement, the money you've earned throughout the course of your working life may last another 20 to 40 years.

Giving Up on a Comfortable Retirement

People tend to give up on investing when they reach a certain age, believing that they will no longer be able to save enough money for their retirement. Contrary to popular opinion, it is never too late to start. Even if you're in your 50s, you may still start saving because you have another 15 years to do so. You may significantly improve your retirement situation just by investing in superannuation, increasing your savings outside of super, and paying off your mortgage.


Making a plan, regardless of your age, is the first step in securing your retirement future. There are numerous reasons why retirement planning is vital, and it requires a proactive attitude. The sooner you begin planning for retirement, the better off you will be in the future. There are literally hundreds of methods available to assist you to make the most of the next 25 years or more if you are approaching retirement.

If you need help with retirement planning, the expert finance and insurance consultants of Swell Financial Planning can help you. We are a Gold Coast-based firm servicing clients locally and around Australia. We provide tailored solutions to help clients achieve their dreams! Get in touch with us now.


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