The third annual Colonial First State Rethinking Retirement report found retirement remains a financial challenge rather than a milestone for many Australians.
The report found that just over half of Australians (51 per cent) now say they feel prepared for retirement, an improvement on previous surveys.
However, more than half (54 per cent) worry they won’t have enough money to live comfortably, while 50 per cent are concerned about unexpected health or aged care costs and 37 per cent fear outliving their super savings.
The pressure is especially acute in the decade before retirement, with 61 per cent of Australians aged 50–59 worrying about whether they have enough savings to live comfortably.
Furthermore, the report notes that on average, Australians aspire to retire at 62, but believe they will need to keep working until 66. This four-year gap points to a mismatch between ambition and financial confidence.
There has also been a sharp shift in the amount Australians believe they need for a comfortable retirement. The research shows that the average amount Australians now believe is needed for a “comfortable” retirement has moved above $1 million – an increase of $183,000 from the last survey.
Kelly Power, chief executive officer of CFS Superannuation, said the research makes clear that retirement today is no longer just a financial transition.
“For many Australians, it brings a range of questions and considerations – from whether savings will be enough, to how to navigate an increasingly complex system. These are challenges many people are working through, and they need the right support to do so with clarity and confidence,” Power said.
The report also revealed that retirement pressure weighs more heavily on women with nearly two in three (62 per cent) worrying they won’t have enough money to live comfortably in retirement, compared with 48 per cent of men.
Women are also more likely to be concerned about unexpected health and aged care costs (53 per cent versus 46 per cent) and about the prospect of outliving their superannuation savings (41 per cent versus 34 per cent).
The proportion of women who feel prepared for retirement has risen from 29 per cent to 43 per cent, while men’s preparedness increased from 44 per cent to 59 per cent. The distance between them, however, has remained largely unchanged reflecting a structural confidence gap that persists across individual circumstances.
“The Rethinking Retirement report consistently shows that access to advice makes a tangible difference. Australians who receive it feel meaningfully more confident about retirement. Planning for retirement is complex, but the path forward becomes much clearer with the right support in place,” Power said.
“That’s why improving access to financial advice is critical. We strongly believe that reducing barriers to advice, like cost, will help more Australians get the support they need to plan and retire with confidence.”
