Retiring Without Advice? Here’s What It Could Be Costing You

Many Australians approaching retirement believe they don’t need financial advice. “We’ve paid off the house, have some super and cash in the bank—what else is there?”

It’s a fair question. But even straightforward financial situations can carry risks, inefficiencies, and missed opportunities that quietly erode your wealth over time.

Here are four important reasons why seeing a qualified financial adviser—even for a one-off strategy session—could help you avoid costly mistakes.

1. You Could Be Missing Out on Valuable Tax Benefits

Superannuation isn’t just for the accumulation phase. Used strategically in the lead-up to retirement, it can provide significant tax advantages.

For example, a personal deductible contribution of $50,000 to super before retirement could deliver a tax refund of over $16,000. After accounting for contributions tax, that’s still a net benefit of $8,500.

But this strategy only works while you meet eligibility requirements—such as satisfying the work test after age 67. Miss the timing, and the opportunity may be lost.

Correct paperwork is also critical. You must submit a valid notice of intent to claim a deduction and receive acknowledgement from your super fund before lodging your tax return. Errors can result in denied deductions or unintended tax outcomes.

This is where an adviser’s role becomes vital—ensuring eligibility is confirmed, timing is optimised, and compliance obligations are met.

2. Super Can Still Work Hard After You Stop

Many retirees withdraw their super and move the funds into bank accounts or term deposits. While this may feel “safe,” it can increase tax liabilities and reduce long-term income.

Funds held in super—particularly in pension phase—often receive tax-free earnings, and withdrawals are generally tax-free for those over age 60. Outside of super, investment income may be taxed at marginal rates, reducing your net return.

Further, strategic use of super can assist with Centrelink entitlements. For instance, if your spouse is under age pension age, super held in their accumulation account may be exempt from the assets test—potentially unlocking thousands in age pension benefits.

Used effectively, super remains a highly tax-efficient structure even into retirement. Advice can help identify whether retaining funds within super is in your best interest.

3. Investment Strategy Still Matters in Retirement

A common myth is that investment decisions stop at retirement. In reality, your investment strategy becomes even more important once you start drawing an income from super.

Why? Because regular withdrawals from volatile assets (like shares) during market downturns can lock in losses and erode capital—a concept known as sequencing risk.

A strategy known as the “bucket approach” can help mitigate this. It allocates your portfolio into short-term (cash), medium-term (bonds), and long-term (growth) buckets. Withdrawals come from cash and bonds while growth assets are given time to recover.

Many super funds now offer flexible investment options to support this—but customising your strategy to suit your needs typically requires guidance. Advisers can also help navigate fund-specific rules, rebalancing options, and drawdown sequencing to preserve capital.

4. The Costliest Mistakes Are Often the Ones You Don’t Know You’re Making

Many retirees think they’re playing it safe—only to discover years later that they’ve missed out on benefits or unintentionally breached rules.

Examples include:

• Missing out on Centrelink because superannuation wasn’t structured correctly

• Paying unnecessary tax due to misunderstood contribution or withdrawal rules

• Working longer than needed because there was no clear retirement strategy

• Losing concessional tax benefits by withdrawing super too early

Financial advisers are trained to identify these types of gaps. They know the questions to ask, the rules to check, and how to navigate constantly changing legislation.

And financial advice doesn’t have to mean an ongoing commitment. Many advisers offer fixed-fee or one-off retirement strategy packages. One couple paid $7,700 for comprehensive advice that helped them access over $30,000 in Centrelink benefits over two years—while also giving them confidence in their retirement plans.

It’s Not Just About Money, It’s About Confidence

The true value of financial advice often goes beyond dollars.

It’s about clarity. Knowing whether you’re on track.

It’s about security. Avoiding mistakes that could cost you later.

And it’s about peace of mind. Being able to enjoy retirement without second-guessing every financial move.

You don’t need to commit to a lifetime of advice. Sometimes, all it takes is one well-timed session to identify opportunities, avoid pitfalls, and set a course with confidence.

Because retirement isn’t just about surviving—it’s about thriving.

Important Disclaimers

This article provides general information only. It is not intended as personal financial advice and does not consider your individual circumstances. Before making any financial decisions, you should consult a qualified financial adviser who can assess your situation and provide advice tailored to your needs and goals.

Superannuation rules, tax laws and Centrelink entitlements are subject to change. Always refer to the latest updates from the Australian Taxation Office (ATO), Services Australia, or consult a licensed financial adviser for guidance specific to your situation.