10 Common Retirement Planning Mistakes (and How to Avoid Them)
Retirement should be a time of freedom, purpose, and peace of mind, but small missteps can quietly erode your confidence, income, or entitlements. At MN8 Wealth, we help pre-retirees avoid costly mistakes and plan with clarity, care, and confidence. Here are 10 common pitfalls we see, and how to steer clear of them.
1. Leaving Funds in Accumulation Phase After Retiring
Why It Matters:
Investment earnings in accumulation are taxed at 15%, while retirement phase earnings are tax-free.
What To Do:
If you’re over 60 and eligible, consider moving your super into a pension account to reduce tax and boost long-term income.
2. Delaying Your Age Pension Application
Why It Matters:
Waiting may mean missing out on income support you’re entitled to.
What To Do:
Check your eligibility as soon as you reach Age Pension age – even if you’re still working.
| Your birth date | Age Pension age |
| Between 1 July 1952 and 31 December 1953 | 65 years and 6 months |
| Between 1 January 1954 and 30 June 1955 | 66 years |
| Between 1 July 1955 and 31 December 1956 | 66 years and 6 months |
| Born on or after 1 January 1957 | 67 years |
3. Missing Out on Entitlements
Why It Matters:
Centrelink assesses both income and assets. Poor structuring may reduce your benefits.
What To Do:
Strategic adjustments, like contributing to a younger partner’s super, can improve outcomes. Get advice before making changes.
4. Assuming You Must Stop Work to Receive the Age Pension
Why It Matters:
You can still qualify while working part-time or casually.
What To Do:
Review your eligibility based on income and assets, not employment status.
5. Overlooking the Commonwealth Seniors Health Card
Why It Matters:
You may qualify even if you don’t receive the Age Pension.
What To Do:
Check the income test – this card can reduce everyday costs and ease budget pressure.
If you’re unsure whether you meet the criteria, feel free to get in touch so we can assess your situation and explore your options together.
6. Not Using Downsizer Contributions
Why It Matters:
Selling your home could unlock extra funds for retirement.
What You Can Do
If eligible, you can contribute up to $300,000 per person into super within 90 days of settlement.
7. Only Taking the Minimum Super Drawdown
Why It Matters:
Many retirees underspend, missing out on lifestyle opportunities.
What To Do:
Plan for retirement phases. Spending is often higher early on, then tapers. Balance enjoyment with longevity.
8. Retiring Without Clear Objectives
Why It Matters:
Leaving work without a plan can create long-term stress.
What To Do:
Define your lifestyle goals and build a financial strategy around them.
9. Not Reviewing Your Retirement Plan Regularly
Why It Matters:
Life changes – and your plan should too.
What To Do:
Review annually or after major life events to stay on track.
10. Trying to Navigate Retirement Alone
Why It Matters:
Retirement planning is complex, and mistakes can be costly.
What To Do:
A financial adviser can help you make informed decisions and maximise your retirement outcomes.
Ready to avoid these pitfalls and plan with confidence?
