Just half of Australians feel prepared for retirement
Despite some progress and a world-class superannuation system, retirement remains a source of financial anxiety for many Australians, according to a new report highlighting the value of financial advice.
Only 51 per cent of Australians think they are ready for retirement, according to the third annual Rethinking Retirement report by super provider Colonial First State (CFS).
“When we first started surveying Australians a few years ago, the figure was only around one in three, so it’s good to see that improving,” said Marissa Powe, CFS’s managing director of growth and retirement.
The 2026 report, based on a survey of 1993 Australians, found women feel less secure about retirement than men, with 62 per cent of women worried they won’t have enough money to live comfortably, compared to just 48 per cent of men.
“We know that this is a result of some contextual factors around lower lifetime earnings, and women are statistically more likely to break employment patterns, so it makes sense to see this reflected in the data,” Ms Powe told AAP.
Survey respondents said they would need, on average, more than $1 million to retire comfortably; This was up $183,000 from the previous survey. Ms Powe said this probably reflected the crisis in the cost of living.
The report revealed the value of financial advice; 77 percent of those who received this advice said they felt ready for retirement, compared to 45 percent of those who did not receive this advice.
“Those who have received advice tailored to them and their individual circumstances give them more confidence that they really do have a plan,” Ms Powe said.
Shaun Au, senior financial advisor at Viridian Advisory in Perth, said people considering retirement often ask whether 67 is “retirement age”.
“It’s quite interesting that so many people have this misconception,” he said.
“This is clearly linked to Centrelink and social security.”
However, although the qualifying age for age pension is 67, there is no official “retirement age” in Australia; Mr Au said it was a matter of individual choice and how much people could afford to pay.
He said there is so much information about retirement online that it can lead to “analysis paralysis” and inaction.
“If I put more into the retirement fund, is that the right thing to do? Will my money be tight? I still have this mortgage, when should I sell this property?”
Ms Powe said most pension fund providers offered simple, free advice on whether their investments were on track and whether the client was best prepared for their life cycle.
For those who want more specific advice, he said most super providers can help connect members with a financial advisor in their area.
“So I think contacting your super fund is a really great first step,” he said.
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