I’m about to tell you about three mistakes that cost Balmain pre-retirees an average of $200,000-$300,000 over their retirement.
These aren’t exotic financial strategies or complex tax schemes.
They’re simple, common mistakes that I see every single week in my Balmain office.
The worst part? Most people don’t even realize they’re making them until it’s too late.
Last month, I sat with a couple – let’s call them John and Margaret – who’d just retired. Combined super: $720,000. Paid-off Balmain home worth $2.8M. They looked set.
But they’d made Mistake #1 (which I’ll explain shortly), and it cost them approximately $280,000 over their expected retirement.
That’s not a typo. $280,000. Gone. Because of one preventable mistake.
Here’s the thing about retirement planning mistakes: They compound. They multiply. A small error at age 60 becomes a six-figure problem by age 75.
So let me show you the three biggest mistakes Balmain locals make – and more importantly, how to avoid them.
This is the big one. The mistake that costs more than any other.
And it’s incredibly common among Balmain homeowners with decent super balances.
You own your Balmain home outright (or nearly). You’ve got $700,000-$900,000 in super. You’re responsible, frugal, independent.
You assume: “I won’t get any Age Pension. My assets are too high. I need to be completely self-funded.”
So you plan your entire retirement around zero Age Pension income.
Problem: You’re wrong. And that assumption costs you hundreds of thousands of dollars.
Your home doesn’t count in the Age Pension assets test.
You could have a $3 million Balmain terrace, and Centrelink ignores it completely.
What counts:
Current thresholds (2025) for homeowners:
Couples can have up to $1,002,000 in assets and still receive part Age Pension
Singles can have up to $704,500 in assets and still receive part Age Pension
Even a part pension of $15,000-$20,000/year is massive over 25 years.
“How the Age Pension Actually Works”
Remember John and Margaret from the opening?
Combined super: $720,000
Home: Paid off, worth $2.8M
They’d planned their retirement assuming zero Age Pension.
Their plan: Draw $48,000/year from super until it runs out.
The problem: They actually qualified for approximately $16,000/year part Age Pension.
But they didn’t know. So they drew more from super than necessary.
The cost:
Over 25 years: $16,000/year × 25 = $400,000 in Age Pension they didn’t know they could claim
Plus: By drawing down super faster, they reduced their balance, which would have eventually qualified them for even MORE Age Pension
Total opportunity cost: ~$280,000 over retirement
All because they didn’t spend 30 minutes with the Age Pension calculator.
Step 1: Use the Services Australia Age Pension calculator RIGHT NOW
Input your actual numbers:
Step 2: Understand strategic positioning
If you’re close to the threshold, strategic decisions can make a huge difference:
Step 3: Re-assess every 2-3 years
As you draw down super, your assets reduce. Your Age Pension entitlement increases.
Someone who gets zero Age Pension at 67 might qualify for $10,000/year by 72 and $20,000/year by 77.
But only if they’re checking regularly.
If you haven’t calculated your Age Pension entitlement in the last 6 months, you’re probably leaving money on the table.
For Balmain homeowners with $600k-$900k in super, that’s typically worth $250,000-$400,000 over a 25-year retirement.
This one destroys retirement plans.
I see it constantly: Someone retires at 65 with $750,000 in super and a $280,000 mortgage with 8 years remaining.
“We’ll just keep making the repayments from super,” they say.
Big mistake.
Let’s do the math:
$280,000 mortgage, 8 years remaining, 5.5% interest rate
Monthly repayment: ~$3,400
Annual cost: ~$41,000
Over 8 years, you’ll pay:
Principal: $280,000
Interest: ~$45,000
Total: $325,000
Now, you’re drawing $41,000/year from super to make these repayments.
But here’s what you’re missing:
That $41,000/year isn’t just leaving your super. It’s also:
The real cost isn’t $325,000. It’s closer to $400,000-$450,000 when you factor in lost investment growth and reduced Age Pension over 20+ years.
David and Lisa, both 64, Lilyfield.
Super: $680,000 combined
Mortgage: $310,000 remaining (10 years left)
They retired anyway, planning to pay the mortgage from super.
Within three years, they were stressed.
Super balance: Down to $550,000
Annual costs: $63,000 (including $38,000 mortgage payments)
Super drawdown: $63,000/year
At that rate, their super would be gone by age 73.
They ended up selling their home at 67, downsizing to an apartment, and using the equity to clear the mortgage.
If they’d done that at 64 instead of 67, they’d have saved ~$45,000 in interest plus three years of stress.
“Balmain Property Prices and Your Retirement”
Option 1: Pay it off before you retire
If you’re 60 with $280,000 owing:
Then retire mortgage-free at 63-64 instead of 60 with a mortgage.
Option 2: Use accessible super to clear it at retirement
If you’re 60+ and can access your super, pay off the mortgage in full.
Yes, it reduces your super balance. But it dramatically reduces your annual costs.
Example:
Super: $650,000
Mortgage: $250,000
Option A (keep mortgage): Draw $53,000/year from super ($32k living + $21k mortgage)
Option B (pay off mortgage): Use $250k from super, leaving $400k. Draw $32,000/year.
Option B is better:
Option 3: Downsize strategically
If your Balmain property is worth $2.5M+ and you owe $300k:
Sell, buy a $1.3M apartment, clear the mortgage, bank $900k+ after costs.
Your mortgage problem just became a surplus income opportunity.
Carrying a mortgage into retirement costs you $150,000-$300,000+ over 20 years through interest, lost investment growth, and reduced Age Pension.
Clear it before you retire, or have a very clear plan for clearing it within 2-3 years.
This one’s subtle but devastating.
Your investment strategy should match your retirement timeline.
Get it wrong, and you either:
Both mistakes cost six figures.
Problem A: Too aggressive too late
You’re 63, retiring in 2 years. Your super is 80% in high-growth shares.
Market crashes (like 2008, 2020). Your $700,000 drops to $490,000 overnight.
You either:
Problem B: Too conservative too early
You’re 52, retiring at 67. Your super is 100% in cash and bonds earning 2.5%.
Over 15 years, you miss out on 5-6% returns from balanced growth.
Cost: ~$180,000 in lost compound growth on a $500,000 balance.
“Retirement Income vs Lump Sum”
Robert, 64, planned to retire at 65.
Super in February 2020: $820,000 (invested 85% in growth assets)
Super in April 2020: $640,000 (market crash)
He panicked. Stayed working three more years until his super recovered.
The cost:
If he’d shifted to a more conservative strategy at 62, the crash would have hit him much softer ($750,000 instead of $640,000), and he could have retired as planned.
Here’s the framework:
10+ years until retirement:
5-10 years until retirement:
2-5 years until retirement:
Retired (or within 12 months):
Once you’re within 5 years of retirement, shift your thinking:
Stop asking: “How much will my super grow?”
Start asking: “How much reliable income can my super generate?”
This means:
The goal: Generate $40,000-$50,000/year reliably from a $700,000 balance, regardless of what the market does.
You’re not trying to turn $700k into $1M. You’re trying to create sustainable income.
Log into your super fund.
Look at your investment option. What’s your allocation?
Ask yourself:
If the answer to #3 is “yes,” you’re too aggressive.
Getting your investment strategy wrong costs $100,000-$250,000 through either market losses at the wrong time or missed growth opportunities.
Match your strategy to your timeline. Shift gradually. Don’t wait until 12 months before retirement to change everything.
Here’s the really scary part:
These mistakes don’t exist in isolation. They compound each other.
Real example: A Balmain couple who made all three mistakes:
Mistake #1: Ignored Age Pension (cost: $320,000 over 25 years)
Mistake #2: Kept $260,000 mortgage until age 70 (cost: $180,000 in interest + lost growth)
Mistake #3: Too aggressive at 64, lost $150,000 in market crash (cost: 3 years delayed retirement)
Total cost: $650,000+
That’s not a hypothetical. That’s a real couple I met in 2023.
They’re now 68, still working, and deeply regret not getting proper advice at 62.
Here’s your action plan:
Go to servicesaustralia.gov.au
Use the Age Pension calculator
Input your actual numbers
If you qualify for ANY Age Pension, factor it into your retirement plan
Time required: 20 minutes
Potential value: $250,000-$400,000
If you have a mortgage:
If you’re retiring in 3-5 years with significant mortgage debt, get advice NOW on the best strategy (pay down vs lump sum vs downsize).
Time required: 2-3 hours of analysis
Potential value: $150,000-$300,000
Log into your super
Check your investment allocation
Compare it to your retirement timeline (using the framework above)
If there’s a mismatch, change it
Most super funds let you switch investment options online in minutes
Time required: 1 hour
Potential value: $100,000-$250,000
Here’s what I tell every Balmain pre-retiree:
You can lose $200,000-$600,000 over your retirement by making these three mistakes.
OR you can spend a few hours and a few hundred dollars getting proper advice and avoid them completely.
Which makes more sense?
Most people spend more time planning a two-week holiday than planning a 30-year retirement.
Then they wonder why they’re struggling at 72.
Don’t be that person.
These three mistakes – ignoring Age Pension, carrying mortgage debt into retirement, and wrong investment strategy for your timeline – cost Balmain retirees an average of $200,000-$300,000 each.
Combined? Up to $600,000+ over a 25-year retirement.
The good news: They’re all preventable.
The bad news: Most people don’t realize they’re making them until it’s too late.
You’ve now been warned.
What you do with that information is up to you.
Most Balmain pre-retirees are making at least one of these mistakes. Many are making all three.
The One Page Financial Plan identifies which mistakes you’re making (or about to make) and shows you exactly how to avoid them.
For $660 (inc GST), you’ll discover:
✓ Your actual Age Pension entitlement (not a guess)
✓ Whether your mortgage strategy is costing you six figures
✓ If your investment strategy matches your retirement timeline
✓ Exactly what to change to avoid these costly mistakes
✓ 100% satisfaction guaranteed
📧 Email: adam@suncow.com.au
📞 Phone: 0418 785 200
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