Are you retiring with more than you need?

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September 02 2021
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A lack of knowledge about retirement options as well as outdated models mean many Australians are retiring with more than they need, an industry expert has revealed.

According to the Moreton Group’s managing director, Cameron Dickson, scaremongering about how much super is needed as well as outdated data about the best age to retire is leading to Aussies working longer than they need to.

In fact, Mr Dickson stated that seven out of 10 people over 55 that have visited his company can actually retire sooner than they initially thought.

Mr Dickson believes retirement calculators provide an overly simplified formula without a deep or informed analysis of an individual’s present and future position based on financial, health and life scenarios.

“They perpetuate a myth that Australians can’t afford to retire and exacerbate anxiety in a huge proportion of working Australians looking to change their lifestyles from work to retirement in the next five to 10 years,” he said.

The managing director noted many Australians are nearer to retirement than they realise and don’t understand they can take on a hybrid finance model of superannuation and government entitlements in order to bring their retirement forward.

“While it may seem complex and difficult to navigate, opening up all financial avenues can help Australians realise their dream of retirement sooner,” Mr Dickson said.

Instead, the financial adviser believes people need to think about their retirement in reverse.

“Stop worrying about what age you should retire at and how much money you have in super; the first step is to find out what’s possible,” he said.

“If you plan what you want to do and work backwards, you will probably find you have enough money to retire earlier than you think. People should think about what’s possible first.”

Noting that most people look for financial advice only after a health scare, Mr Dickson said this is not a good statistic, and that Aussies need to start the retirement conversation earlier so they plan better.

“Discussing your income and how much money you have in the bank doesn’t come easy to Australians,” he said. “Those who feel they have too little money often find the discussion to be embarrassing.

“This awkward silence only intensifies the general anxiety in the community and a lot of people don’t seek advice and end up making decisions based on what they read online.”

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

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