While 1 January goal-setting rituals are firmly embedded for Millennials and Gen Z, Baby Boomers and Gen X are more inclined to let the moment pass, missing what one wealth adviser describes as a critical opportunity to materially improve their retirement outcomes.
Vincents Private Wealth director Paul Green said many Australians within five years of retirement still have the financial capacity to make meaningful changes, but often assume they have “left it too late”.
“That’s one of the most common mistakes we see,” Green said.
“People think five years isn’t enough time to make a difference, when in reality there are still significant opportunities available, particularly through superannuation.”
Among the most frequently missed opportunities are catch-up super contributions, debt restructuring and portfolio rebalancing, strategies that can meaningfully strengthen a retirement position when applied with discipline and clarity of purpose.
Green said the bigger issue, however, is a lack of engagement.
“People will regularly set life, health and career resolutions on 1 January, but for some reason our financial health often isn’t given the same priority as our physical wellbeing.”
The start of a new year, alongside the end of the financial year, provides a natural checkpoint to assess progress, reset expectations and reconnect financial decisions with broader life goals.
“There’s always time to reflect on where you are relative to where you thought you’d be, and sometimes that comparison can be a real wake-up call,” he explained.
For pre-retirees, he recommended beginning with a financial health audit, gaining a clear understanding of assets, liabilities and cash flow, before mapping that position against lifestyle goals and the realistic cost of achieving them. That process often forces difficult but necessary trade-offs between present-day spending and long-term security.
Importantly, Green highlighted improvement does not require a dramatic overhaul.
“Very few people start big. It’s like going to the gym, you don’t walk in on day one and lift 100 kilograms. You start small, and it’s the same with building financial capability.”
The impact of goal-setting becomes more pronounced the earlier it begins. Those 10 or 15 years from retirement benefit not only from compounding returns, but from additional time for strategies to evolve, contributions to accumulate and work arrangements to adapt. Even delaying full retirement or shifting to part-time work can have a multiplier effect on long-term financial resources and quality of life.
Professional financial advice plays a critical role in bridging the disconnect between lifestyle aspirations and financial reality, Green explained, particularly for those who lack the technical knowledge to assess what is achievable.
“It’s not all about the money,” he highlighted.
“Good advisers help clients define non-monetary goals, whether that’s helping children into housing, funding family holidays or simply feeling secure and content. The financial strategy exists to support those outcomes.”
Pre-retirees who actively set financial goals tend to experience lower stress and greater confidence, while those who delay engagement risk costly errors and missed pathways that can permanently limit their retirement options.
“The consequences of inaction can be expensive. “And for people approaching retirement, the margin for error is much smaller than they realise.”
