The Barefoot Investor Scott Pape said many Aussies don’t give much thought to what they are going to do in retirement. (Source: AAP\/Getty) <\/p>\n
A finance expert has revealed the \u201cbiggest mistake\u201d that Aussie retirees<\/a> are making, and it has nothing to do with their superannuation<\/a> or money at all. Retirement<\/a> is supposed to be a time for some well-earned relaxation, but many Aussies have admitted they are worried about their retirement.<\/p>\n The Barefoot Investor Scott Pape has urged Aussies to “treat retirement like a job\u201d and said many Aussies don\u2019t take the time to plan what they are actually going to do in retirement<\/a>. Pape\u2019s message was sparked by the retirement<\/a> of his long-time editor, Wally, this year.<\/p>\n Pape said the pair spent quite a bit of time simplifying his portfolio, lowering his fees and ensuring he had enough living expenses at hand \u201cto ride out any Trump slumps\u201d in the lead up to his retirement<\/a>.<\/p>\n RELATED<\/p>\n \u201cHowever, we\u2019ve devoted even more time to avoiding what I think is the biggest mistake retirees make \u2026 and it has nothing to do with money,\u201d Pape wrote in his weekly newsletter.<\/p>\n \u201cMost people spend years making sure they\u2019ve got enough superannuation<\/a> to never work another day in their life.<\/p>\n \u201cYet they don\u2019t spend a single day planning what they\u2019re actually going to do.\u201d<\/p>\n Do you have a story to share? Contact tamika.seeto@yahooinc.com<\/p>\n Pape said his friend, former Deputy Prime Minister Tim Fischer, told him he had spent 12 months preparing for his retirement<\/a> before it happened and said you needed to \u201ctreat your retirement like it\u2019s a full-time job\u201d.<\/p>\n Pape said Fischer was \u201cdead right\u201d.<\/p>\n \u201cI\u2019ve had thousands of conversations with retirees, and I can tell you the happiest ones are not those with the biggest SMSF balance \u2013 they\u2019re the ones with purpose and a plan,\u201d he said.<\/p>\n New research from UniSuper found more than 90 per cent of Aussies were concerned about retirement<\/a>.<\/p>\n Money was a worry for many, with 45 per cent of all working Australians feeling they weren\u2019t financially prepared for retirement and 48 per cent in the dark about how much money they would need to comfortably retire<\/a>. Meanwhile, more than two-thirds were worried about outliving their retirement savings.<\/p>\n The Association of Superannuation Funds of Australia (ASFA) estimates that a single homeowner would need $595,000 and a couple $690,000 to retire comfortably at age 67. This is based on them drawing down all their capital and receiving a part Age Pension<\/a> from the government.<\/p>\n Story Continues <\/p>\n Purpose and social connection<\/a> were another major concern, with 61 per cent worried about losing their social ties formed in the workplace when they retired. Feeling isolated and losing social connections, and boredom were other big worries.<\/p>\n UniSuper CEO Peter Chun said there was no one-size-fits-all approach to retirement<\/a>.<\/p>\n \u201cRetirement is one of life\u2019s most significant milestones and it\u2019s natural for people to worry about losing their sense of connection, identity and purpose when they leave full-time work and their career,\u201d he said.<\/p>\n “What is inspiring is that rather than retreating, many Australians are reimagining retirement not as an end, but as the start of a new chapter filled with meaning, growth and fresh opportunity.”<\/p>\n So what are Aussies doing to give themselves purpose in retirement?<\/p>\n UniSuper found 81 per cent of Aussies said they planned to keep working in some way in retirement<\/a>, whether that\u2019s through a new job, volunteering or flexible, hybrid work.<\/p>\n Services Australia general manager Hank Jongen also revealed some Aussies were choosing to retire gradually rather than stopping work altogether, which is often called a “soft retirement”<\/a>.<\/p>\n Aussies can continue working and still receive part of the Age Pension, depending on how much they earn.<\/p>\n “This can offer both financial flexibility and a smoother emotional transition to this stage of your life,” Jongen said<\/p>\n While 71 per cent cited financial considerations as a key reason they would continue to work, others said they would do it to maintain a sense of purpose (56 per cent) and stay socially engaged (28 per cent).<\/p>\n Two-thirds of Aussies said caring for loved ones was among their top priorities in retirement, while one in three said volunteering and community involvement were among their key goals.<\/p>\n \u201cAustralians are seeking meaningful ways to stay connected and they\u2019re doing it on their own terms,” Chun said.<\/p>\n “Whether it\u2019s part-time work, volunteering or creative pursuits, the path to purpose in retirement is deeply personal.”<\/p>\n Get the latest Yahoo Finance news – follow us on Facebook<\/a>, LinkedIn<\/a> and Instagram<\/a>.<\/p>\n