Common retirement regrets and how to avoid them
Written and accurate as at: Oct 06, 2026 Current Stats & Facts
It’s impossible to plan for every twist and turn in retirement, but like with most things in life, there’s a lot we can learn from people who’ve already travelled the road ahead of us. Below, we explore six common regrets among retirees and how you can avoid them.
Retiring too late
There’s no rule that says you have to retire at a particular age, and there are plenty of good reasons to keep working. But there can be downsides to putting things off until the ‘right’ moment, and they’re often not recoverable.
The early years of retirement are a rare sweet spot, when free time, savings, and the energy to make the most of both finally overlap. That window can be ideal for travelling, spending time with grandkids, and pursuing hobbies – particularly the more physical ones. Work too long and you might miss out.
Retiring before you’re ready
The inverse of retiring too late is leaving work before you’re financially ready. Before you hang up your hat, take the time to test your retirement budget against reality by estimating what your income and expenses will look like. There are calculators online to help with this, but you can also refer to various guides, such as:
- The ASFA Retirement Standard, a quarterly report which estimates how much income Australians might need to achieve either a modest or comfortable retirement
- The 70% rule of thumb, which suggests that retirees will need around 70% of their pre-retirement income to maintain a similar standard of living in retirement
If your super balance (and other sources of income) aren’t quite there, there are a few things that might be able to help. You could work for a little longer, or look for ways to boost your retirement savings while you’re still earning. Making additional contributions to super, whether from your take-home pay or by salary sacrificing, could leave your balance looking much healthier in retirement. Be sure to use the tools and resources from your super fund to get a good handle on how your retirement savings - and expected income in retirement - are tracking.
Of course, it’s not just about the numbers. To be ready, you also have to be emotionally ready to step into a brand new chapter of life. Feeling ready to leave the workplace, and the purpose, routine and social connections this can bring, is just as important as your finances.
Underestimating how long retirement will last
Another mistake is overlooking the possibility of a longer retirement. Australians are living longer than previous generations, which is good news in many ways. But it also means your savings may need to stretch further than you anticipated.
The possibility of outliving your savings is known as longevity risk, and it can be one of the more difficult parts of retirement planning because none of us knows exactly how long we’ll live. Average life expectancy statistics can give you a useful starting point, but they’re not predictions. To hedge against this uncertainty, it might help to boost your super while you’re still working, build some flexibility into your spending, and check how far down the track you might qualify for the Government Age Pension.
Neglecting your health
A lot of the advice around retirement planning centres on finances, but your health is arguably just as important. While there will always be things outside our control, there’s a lot many of us can do now to give ourselves the best chance of staying active and independent for longer.
That might mean getting regular health checks done, staying physically active, eating well and finding ways to keep your brain engaged. It’s also worth thinking about the practical side of ageing, including whether your home will remain safe and accessible if you become less mobile.
Not taking advantage of your entitlements
Many people assume that if you don’t qualify for the Government Age Pension, many other benefits are closed off to them. But this isn’t necessarily true. Depending on your circumstances, you might be eligible for:
- The Commonwealth Seniors Health Card: which provides cheaper prescription medicines and may also reduce some healthcare costs.
- State or territory concessions: which might include discounts on things like council rates, electricity, water, public transport or vehicle registration.
Not having a plan
Finally, there’s one mistake that can eclipse all others, and that’s going into retirement without a plan. Of course, no plan will survive contact with reality perfectly – there will always be variables, whether it’s the markets, family dynamics or your health. But a good retirement plan can provide a framework for making decisions when those variables change, rather than leaving you to work everything out as you go.
If you’d like help devising a plan for your retirement, consider speaking with a financial adviser.
