6 Reasons You Need a Retirement Planning Financial Advisor

6 Reasons You Need a Retirement Planning Financial Advisor

You may have one of those accountants who think they are experts on the share market and that all you need is a self-managed superannuation fund to plan and manage your retirement. They share their views on the stock market, what they think is going to happen and know all about “blue chip” shares and franking credits. However, their advice is rarely put in writing.

They also suggest that you do not need to pay for retirement planning advice, because you can do it all yourself and save a lot of money.

This approach reminds me of the famous quote by the former Secretary of Defence of the United States of America, Donald Rumsfield.


“There are known knowns. These are things we know that we know. There are known unknowns. That is to say, there are things that we know we don’t know. But there are also unknown unknowns. There are things we don’t know we don’t know” – Donald Rumsfield


As a Fellow Chartered Financial Practioner (FChFP), Chartered Accountant (CA), and Chartered Taxation Adviser (CTA), I know from my personal experience that accountants ‘don’t know they don’t know’ all about retirement planning risks, because they do not have the qualifications, experience and training.

A retirement planning financial advisor with the appropriate experience, qualification and education are able to help you identify the ‘unknown’ risks and assist you in preparing retirement planning strategies that reduce the impact on your life goals.

We believe Every person SHOULD have a retirement plan that considers the following retirement risks:

Sequencing risk

Downturns in investment markets in the early years of retirement can reduce what you need to last your whole retirement.  Strategies are required to mitigate the impact of sequencing risk, whilst at the same time not being too defensive so that your life goals are not able to be achieved.

Expenditure risk

You may incur additional expenditure in various retirement phases. These ‘unknown’ costs are difficult to budget for, however, they can have a devastating impact on your retirement plan. A process is required to look forward and anticipate what might affect your retirement plan.

Implementation risk

Several strategies are available to minimise retirement risks, however, if you are not aware of the strategies or prepared to use them, your retirement plan may be impacted. The strategies are constantly changing and evolving over time, as more and more people retire.

Inflation risk

It is a common strategy as you transition to retirement, or are in one of the later retirement phases to adjust your investment strategy to one of less risk. Whilst this strategy may help to mitigate sequencing risk, it provides very little protection against inflation and longevity.

Longevity risk

Australia’s population is ageing and we are all living longer due to advancements in health care and awareness of staying active and healthy. Whilst this is good news, there is a risk that you will outlive your retirement savings.

Investment Risk

Simplistic investment strategies may be easy to understand, however, they do not provide protection for unknown events and uncertainties that could eventuate where economic, political and investment conditions change.


Every person CAN have a happy, healthy and purposeful retirement, using a retirement plan that helps them manage the risks of retirement.  When you have appropriate retirement planning strategies in place,  you can then focus on achieving your life goals and making your second 50 your best 50.

As part of our 7 step retirement planning process, we identify the risks to your retirement, by looking forward to predict what might happen in the future. We do not assume that your retirement plan will unfold in a straight line without any changes along the way.

We also understand we ‘don’t know what we don’t know’ and work with specialists such as investment management professionals, estate planning specialists and experienced tax accountants to provide you with a comprehensive retirement plan.

If you would like to dive deeper into understanding these risks, download our Common Retirement Risks document or contact us to discuss further.

Discussion question

How do you plan to manage the risks of retirement and stop them from becoming retirement planning mistakes?


General Advice Warning: Any advice on this site is general advice only and does not take into account the objectives, financial situation or needs of any particular person. It does not represent legal, tax, or personal advice and should not be relied on as such. You should obtain financial advice relevant to your circumstances before making any decisions.

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