The Hidden Cost of Delaying Retirement Planning

Time in the Market Vs Timing the Market is what Counts

We often speak with clients, and one thing that continues to surprise us is how frequently people delay thinking about their retirement. It doesn’t matter how much someone earns or whether they are male or female – many leave retirement planning far too late.

Even with compulsory superannuation, many Australians assume that the minimum contributions will be enough to fund the lifestyle they want in retirement. For most, these contributions provide a modest or, at best, comfortable standard of living.

Those who hope for more – travel, pursuing passions, leaving a legacy for family – need to take action sooner rather than later.

The True Cost of Delay
Putting off retirement planning might feel safe today, but it can be costly tomorrow. Many Australians delay planning, assuming super alone will be enough – yet every year of delay limits savings growth and reduces flexibility later in life.

Recent data highlights the gap: Australians aged 50-54 have an average super balance of 246,955 (men) and 182,167 (women), while a comfortable retirement at 60 requires around $469,000 (ASFA). For those aged 60-64, average balances are $380,737 for men and $300,717 for women, with medians even lower (ASFA).

Even modest early contributions can make a big difference. Adding just $100 per week in your 20s can grow to tens of thousands more by age 60 than starting the same contributions in your 40s.

Time in the market – not timing the market – is what really counts.

The message is clear: start early if you can, review your super regularly, and make deliberate choices about your financial future. Every step you take now buys more freedom and options for later.

It’s Never Too Late – But Plan Differently
For some, it may already be too late to rely solely on building wealth for retirement. If you’re nearing retirement or already there, it’s still worthwhile to reflect on what worked, what didn’t, and what lessons you can pass on to the next generation.
Many of our clients are focused on more than just themselves; they want to equip their children and grandchildren with the tools and knowledge to make confident financial decisions.

Coaching the Next Generation
If you’ve built wealth, think about how you can help younger family members start strong:

• Share what you did well – and where things got difficult. What would you have done differently if you could start again?
• Encourage financial literacy, open conversations about wealth, and proactive planning for life’s uncertainties.
• Help them start building their own financial foundation early, so they avoid common mistakes and can fully take advantage of compound growth.
• Support them in finding a financial adviser who aligns with their goals and values, helping them create strategies that protect and grow their legacy.

This approach not only strengthens family cohesion but also safeguards the wealth that you have worked hard to build.

Think Beyond the Government Pension
While government pensions provide a safety net, it’s important not to rely on them as a primary source of retirement income. Demographic changes and budget pressures may lead to stricter eligibility requirements, reduced payouts, or an increased pension age. Planning on your own terms ensures your retirement lifestyle isn’t limited by policy changes or economic uncertainty.

Practical Tips We Share with Clients

• Start early: even modest contributions can grow significantly over time.
• Review your superannuation and investment strategies regularly.
• Consider additional voluntary contributions to super or diversified investments outside super.
• Engage in regular conversations with family about financial goals and values.
• Seek professional guidance to map out retirement goals and strategies tailored to your circumstances.

At Morrows Private Wealth, we work closely with clients and their families to create financial strategies that not only support retirement plans but also equip future generations to make informed decisions.

Whether you or your loved ones are just starting careers, mid-careers, or approaching retirement, it’s never too late to take action, and every step you take today can make a meaningful difference tomorrow. Let’s start the conversation.