Not Enough: The Hard Truth About Retirement Without a Plan

Imagine this. You’ve worked hard your entire life, saved diligently, and now you’re standing at the edge of retirement, wondering, “Will it be enough?”

That’s exactly where Mr and Mrs Don’t Have Enough found themselves.

They dreamed of leaving work behind, traveling in their caravan, and enjoying the freedom they’d earned.

But when we ran the numbers, reality hit—they weren’t as close as they thought. Their story is one of facing the truth and finding a way forward.

Mr and Mrs Don’t Have Enough:

• Ages: 59 and 58
• Joint Income: $180k
• Accumulated retirement assets: $900k
• Debts: $100k

Retirement Goals:

• Retirement income of $100k pa
• Purchase a caravan for approx $150k

But here’s the challenge—they needed a solid plan to bridge the gap between their dreams and their reality.

Retirement Vision:

When we explored their retirement vision, it became clear that their goals weren’t just about numbers.

What did that look like for Mr and Mrs Don’t Have Enough?

• Feel Confident in Their Finances: They wanted a clear plan to guide them and one they could rely on.
• Making Work Optional: Wanting a solid plan to exit the workforce on their terms.
• Become More Active and Healthy: Wanting more time to focus on their health and fitness to be able to live an active lifestyle in retirement for as long as possible.
• Supporting and Protecting Those They Loved: Longing to have more time to support those around them and create more time for family and friends.
• Master New Skills and Knowledge: Wanting more time to dive into hobbies and projects which would bring them joy and purpose in retirement.

Their vision wasn’t just about retiring—it was about creating a life they could truly enjoy.

What’s going to bring you joy and happiness in retirement?

Retirement Feasibility

But when it came to their retirement feasibility, the numbers told a sobering story.

Based on their goal of retiring in three years with one hundred thousand dollars annually, their current assets and timeline wouldn’t support that vision.

We explored three key paths forward:

• Adjusting Lifestyle Spending: Explored what it would like financially if they lived on $80k or $70k.

• Extend their working time frame: Exploring what it would really take to meet their dream retirement income needs.

• Settle for running out of money early: Exploring and testing when their money would run out and the impact of age pension entitlements later in life. Combined with using a reverse mortgage to top up their income or alternatively downsize later in life.

Ultimately, they decided to work an additional five years, which meant their funds would last into their mid-to-late eighties. They were comfortable with this as it would allow them to live a good life in early retirement (go-go years).

They also accepted that their home equity would serve as a backup if needed.

Have you explored whether you are on track and understand what’s required to get on the right pathway for your retirement?

Creating a Resilient Retirement Plan

To make their plan resilient, we focused on three critical areas.

• Investment Risk: We tested various risk levels and their impact on extending their retirement income. We landed on reducing their exposure to market downturns, ensuring stability during volatile times so they were confident their retirement income would continue through market downturns.
• Cash Flow Plan: We created a cash flow plan to align their money when they’d need their income in retirement. Avoiding any unnecessary withdrawals during market dips and avoiding selling growth assets at these times.

• War Chest: We established a war chest— at least five years of income set aside in cash, term deposits, and bonds to cover immediate needs while the rest was invested in growth assets to combat inflation and extend the life of their savings.

Have you considered how resilient your retirement plan is?

Optimise

Optimising their plan was the next step. After all, you want to make sure you don’t miss any opportunities.

• Redesigned Portfolio: We redesigned their portfolio to match their risk comfort levels and ensure funds would be available when needed.
• Tax Benefits: We identified tax-efficient strategies to boost their retirement balance and reduce unnecessary tax burdens.

• More Money to the Kids: And we made sure that more of their hard-earned wealth would stay within the family by minimising the tax impact on their estate.

Many procrastinate and put retirement planning in the too hard basket. But here’s the thing: any missed opportunities compound over time and turn into very costly financial mistakes.

Starting early is key here—over half of retirees don’t leave work on their own terms due to health issues, job loss, or caregiving responsibilities. Preparation gives you control and peace of mind.

Have you considered what might be missing from your retirement, if you even have one?

Retirement Roadmap

Now, Mr and Mrs Don’t Have Enough have a clear retirement roadmap.

They know what steps to take to reach their goal of retiring with confidence. Their plan identifies blind spots, minimizes risks, and adapts to life’s inevitable twists and turns.

They’ve redefined their expectations, focusing on living actively in their early retirement years while preparing for a simpler lifestyle later. With this roadmap, they can confidently say, “We’re ready,” and step into retirement knowing they’ve covered all bases.

Since working with Mr and Mrs Don’t Have Enough, they have revised their retirement plan along with spending expectations and are now working towards retiring earlier rather than later.  Yes a few tradeoffs have to occur, but ones that allow them to live an active life while they are young enough to still enjoy it.

This is why working with a professional and expert in retirement is critical if you want to make the right moves and avoid costly mistakes.

But ultimately it’s about protecting what you’ve worked so hard for and living a great life in retirement with the time you have left.  After all, we don’t know how much time each of us has left…

If you’re wondering whether you’re on track for your own retirement, let’s have a quick conversation. Book a free 15 min Retirement Clarity Call by clicking here, and together we’ll uncover where you stand and what steps you can take to secure your future.

Glenn Doherty – CFP – Financial Planner | Retirement Planning Specialist |Retirement Planning Made Simple for over 55’s within 7 years of retirement

We work with people in Adelaide and around Australia virtually via zoom!

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