Why waiting until 67 to plan your retirement could cost you
- Mitchell Mackenzie
- Apr 23
- 2 min read
Aspire2Wealth's Mitchell Mackenzie explains how retirement may seem distant, especially with the Age Pension eligibility at 67, but waiting until then to plan could mean missing key financial opportunities.
Rising living costs in Perth only add to the risk. Planning early can help you build a stronger financial base and give you more flexibility later in life.
Compound interest rewards early action
The sooner you start investing, the more time your money has to grow through compound interest.
For example, investing $10,000 annually from age 35 with a 7% return could give you over $1 million by 67.
Start at 55, and you may end up with just over $200,000. The difference is time, and once it's gone, you can't get it back.
Superannuation gaps can hurt more than you think
Many Australians fall short in building adequate superannuation. According to the Australian Tax Office (ATO), most balances at retirement are below the amount needed for comfort.
Association of Superannuation Funds of Australia (ASFA) suggests that Perth couples need about $70,000 per year in retirement. The Age Pension offers less than half that, so relying on it could lead to a limited lifestyle.
By starting early, you can make extra contributions, access co-contributions, and shape an investment strategy suited to your goals.
Learn how our financial planning services can help you close the gap.
Health and lifestyle considerations for retirement planning
As we age, health concerns can affect our ability to work or earn extra income.
Planning earlier provides the option to reduce work hours or retire when it suits you, not when health forces your hand. It also gives you time to prepare for medical expenses without financial pressure.
Financial stress can impact family and wellbeing
Last-minute planning often means rushing decisions like selling the family home or depending on adult children.
In Perth's property market, this could lead to poor financial outcomes. Early planning gives you more control and avoids putting pressure on your loved ones.
A proactive plan puts you in control
Retirement planning doesn't have to be complex.
At Aspire2Wealth, we help Australian residents assess super balances, project retirement needs, and build strategies aligned with personal goals.
Whether you're in your 30s or nearing your 60s, acting now offers more security and choices later.
Start your retirement journey today
Not sure where you stand? Let's change that.
Book a consultation with Aspire2Wealth and take the first step toward a confident and comfortable retirement.
References
Aspire2 Wealth Advisers Pty Ltd ABN 42 125 897 903 is an authorised representative and credit representative of Charter Financial Planning Limited ABN 35 002 976 294, AFSL and Australian Credit Licence No. 234665.
This website contains information that is general in nature. It does not take into account the objectives, financial situation, or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.
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