What are the biggest mistakes you can make when looking to retire, planning to retire, or when you are retired?
We surveyed thousands of Marcus Today members and received about a thousand replies. After all, most of our members are retired—so rather than lecturing retirees on how to retire, we asked them about their experiences.
You might be amazed at some of the mistakes people make in retirement—and some of the things you can do to avoid them.
- Not Planning at All
This might sound silly, but as an Englishman coming to Australia, I’ve noticed a certain attitude towards luck. Australia is called “the lucky country”, though that phrase wasn’t originally meant as a compliment. There’s a pioneering spirit here—people who took a gamble and it paid off.
This mindset sometimes extends to retirement, with people assuming their “boat will come in” without needing to plan for it. But the reality is that you do have to make an effort.
One of life’s great lessons is that if you get up every morning and put in the effort, things will fall into place over time.
One of the biggest mistakes our members reported? Drifting into retirement without a plan. The earlier you start, the better.
- Relationship Problems
You can make all the right financial decisions, but nothing will wreck your retirement plans faster than relationship breakdowns.
Where else can you get a guaranteed -50% return?
If a relationship breaks down, not only do your assets get split, but your costs often double—two houses, two sets of bills. Financially, your relationship is one of the biggest decisions you will ever make.
- Ignoring Your Health
Retirement planning isn’t just about money. Your health is just as important.
Many retirees find that medical issues completely derail their plans. You could do everything right financially, but without good health, it won’t matter.
One of the biggest concerns is losing capacity—your ability to make financial decisions. If you lose capacity, control over your finances often falls into someone else’s hands.
A lawyer I know gives a great talk on this. He says that once you lose capacity, you might find yourself living in a tiny house in your eldest daughter’s backyard. She brings you coffee, looks after you, and everything seems fine—until her husband gets tired of the arrangement. Then, one day, you wake up on the nature strip outside your youngest son’s house. No coffee appears. Reality sets in.
Capacity is a serious issue. If you can’t make financial decisions anymore, your future depends entirely on others. While there’s always some level of medical lottery, there is a lot you can do to stay fit and independent for longer.
- Underestimating Longevity
If you live longer than expected, your retirement funds need to last longer too.
One simple way to estimate your longevity is to look up your family tree. Genetics plays a big role.
For example, my father lived almost to 90. I expect I’ll live at least that long—probably longer, since I’m healthier than he was. If your parents or grandparents lived past 100, you might have to plan for a very long retirement.
A lot of people use life expectancy tables, but those numbers don’t always reflect personal circumstances. I actually have something called the “death sheet” on our website—it’s a bit morbid, but you can enter your birthdate, and it will tell you how many days, weeks, weekends, and years you have left based on government life expectancy tables.
- Prioritising Inheritance Over Your Own Retirement
A common theme in our survey was retirees worrying about leaving money to their children.
Many members said this was a mistake.
If you live to 90, by the time you pass your wealth on, your kids will probably be retiring themselves. You’ve spent years compromising your own lifestyle, only for them to get an inheritance when they don’t even need it anymore.
Some people think, Well, my kids don’t need it, so I’ll leave it to my grandkids. That sounds reasonable, but as my lawyer friend points out, that’s also the perfect setup for family lawsuits. Your children might sue your grandchildren for the money. It happens more than you think.
Many of our members suggested a better approach: don’t factor your kids into your retirement planning at all.
If they know they’re getting an inheritance, they might work less, make less effort, and get up later in the morning. And if they do get an inheritance but it’s smaller than expected, they’ll be disappointed.
On the other hand, if they expect nothing, they’ll have a full and independent life. And if they do end up getting something, it will be a pleasant surprise.
- Making Life Too Easy for Your Kids
I once had a very wealthy client who had made millions selling a funds management business. He loved the stock market, and I was his broker.
One day, over lunch, he said to me:
“Marcus, I envy you.”
I laughed. “How could you possibly envy me? You’ve made all this money!”
He replied, “I roll out of bed whenever I want, wander into the kitchen, and my wife rolls her eyes at me. I can’t seem to develop passion for anything. But you—you have liabilities. You have kids, a mortgage, responsibilities. You have things to get up and do. I envy that.”
His theory? The more liabilities you have, the more you get out of life.
If you make life too easy for your kids, they’ll never develop that drive.
Final Thoughts
- Plan ahead rather than drifting into it.
- Prioritise your relationships—both financial and personal.
- Stay healthy and do everything possible to maintain capacity.
- Plan for longevity rather than assuming you won’t make it to 90.
- Put yourself first instead of worrying about inheritance.
- Don’t make life too easy for your kids—let them carve their own path.
If you think about these issues early, retirement can be far better than if you just roll into it without a plan.
