‘It’s too late’: Retirement myth holding Aussies back

Many Australians approaching retirement have quietly convinced themselves they’ve left it too late to improve their financial future, but experts say that belief could be one of the biggest barriers to enjoying a more secure retirement.

New research from Aware Super has found one in three Australians aged between 55 and 75 who are approaching retirement have become disengaged from their superannuation. For almost one in four, it’s because they believe they simply don’t have enough saved for it to make a difference anymore.

According to Aware Super Head of Guidance Lynda Cross, it’s a mindset she encounters regularly.

“Too many Australians think they’ve left their retirement run too late. In reality, the biggest risk isn’t starting late, it’s never starting at all,” Cross told Starts at 60.

“We’re seeing that this often isn’t a motivation problem, it’s a confidence problem.

“Many people approaching retirement worry they’ve fallen behind, don’t know where to start, or think looking at their super will deliver bad news. That uncertainty often leads to avoidance. The reality is that switching off doesn’t improve the outcome, but taking even one small step can.”

It’s not always about having the biggest balance

Cross believes many Australians underestimate how much influence they can still have over their retirement, even in their late 50s or 60s.

“It’s almost never too late to improve your retirement outlook,” she said.

“A few extra years of contributions, a better understanding of your options, or a clearer plan for how you’ll draw an income in retirement can all make a meaningful difference.

“The people who feel most confident about retirement aren’t always the ones with the biggest balances — they’re the ones with a plan.”

She says one of the biggest mistakes she sees is people checking their super balance but never taking the next step of understanding what that figure actually means for their retirement income.

“Retirement planning doesn’t have to start with a big financial decision,” Cross said.

“It can start with a conversation, a calculator, or simply understanding how long your money could last.”

Small steps can make a difference

While many people assume improving their retirement outlook requires major financial sacrifices, Cross says there are practical steps that can be taken without overhauling everyday life.

Among them are checking whether you have multiple super accounts, reviewing your investment option and exploring retirement planning tools to better understand your income in retirement. For some Australians, strategies such as consolidating super accounts, making catch-up concessional contributions or using downsizer contribution rules may also be worth investigating, depending on their circumstances.

“You don’t need a financial makeover to improve your retirement outlook,” she said.

“Start small. Log into your account, check whether you have multiple super accounts, review your investment option, and use a retirement calculator to understand where you stand.

“Small actions build confidence, and confidence often leads to bigger, better decisions later.”

Retirement is a long game

Another misconception, Cross says, is believing your retirement success is determined by the balance in your account on the day you stop working.

“Retirement isn’t the finish line for super — it’s a new phase,” she said.

“Many people focus on the balance they retire with, but a significant portion of retirement income can come from investment earnings generated after retirement.”

She also points out that many Australians will combine super with personal savings and, where eligible, at least a part Age Pension.

“The biggest misconception is that retirement success is determined by a single number,” Cross said.

“Your retirement outcome isn’t just about the size of your balance — it’s about having a strategy, understanding your options and using your savings with confidence.

“A retirement plan doesn’t need to be perfect. It just needs to be started.”

General advice only. Before making changes to your superannuation or retirement strategy, consider seeking independent financial advice to determine what is appropriate for your personal circumstances.