For many Australians, retirement is something to look forward to—a time to finally relax, travel, spend time with family, and enjoy the fruits of decades of hard work. But for a growing number of older Australians, that dream is starting to feel more like a question mark than a certainty.
New research from Challenger and YouGov has revealed a worrying trend: Australians over 60 who haven’t yet retired are feeling increasingly anxious about their financial future. And it’s not hard to see why.
With the cost of living continuing to rise, share markets swinging wildly, and global economic uncertainty looming large, confidence among pre-retirees is taking a serious hit. In fact, three in four Australians approaching retirement say the rising cost of living has directly impacted their sense of financial security.
And it’s not just a vague unease. Two in five Australians say their biggest fear in retirement is running out of money. Even more concerning, nearly one in three are now extremely or very worried about outliving their savings altogether.
These fears are even more pronounced among women and those without access to financial advice. And with an estimated 1.2 million Australians unsure of where to even begin planning for retirement, it’s clear that many are navigating this critical life stage without a map.
According to Mandy Mannix, Chief Executive Customer at Challenger, confidence isn’t just a nice-to-have when it comes to retirement—it’s essential.
‘When people feel uncertain about their finances, they tend to hold back,’ she explains. ‘That’s led to a chronic underspending problem in retirement, with many Australians living more cautiously than they need to.’
In other words, fear of the unknown is causing many retirees to tighten their belts unnecessarily, missing out on the very things that make retirement enjoyable—like travel, hobbies, and quality time with loved ones.
‘Ask a happy retiree what brings them joy,’ says Ms Mannix, ‘and they won’t just talk about their super balance. They’ll talk about the coffee catch-ups, the morning walks, and the holidays they have planned to visit family or see the world.’
Adding to the anxiety is the recent volatility in global share markets. A separate report from the Westpac-Melbourne Institute found that consumer confidence in Australia dropped to a six-month low in April, largely due to sharp falls in the ASX 200 and the US S&P 500.
Matthew Hassan, Westpac’s Head of Australia Macro-Forecasting, says the impact of these market drops is particularly significant for older Australians.
‘If you’re near retirement or already retired, a fall in the markets is a pretty big deal for your superannuation holdings,’ he explains. ‘That can directly affect your day-to-day spending and your overall sense of financial security.’
He also notes that the fall in the Australian dollar and global economic uncertainty—including trade tensions and inflation—are being interpreted by many as warning signs, further shaking consumer confidence.
As financial uncertainty continues to impact many Australians, especially those nearing or in retirement, it’s crucial to remember that confidence plays a pivotal role in shaping the retirement experience, as Ms Mannix has put it, ‘We know retirement can be one of the most rewarding stages of life—but confidence is key.’
Shifting financial conditions often bring concerns about retirement security to the forefront. While each person’s situation is unique, open conversations about these challenges can help navigate the uncertainty ahead.
How are you feeling about your own retirement plans? Have recent financial challenges affected your confidence about retiring comfortably? We’d love to hear how you’re approaching the future and what steps, if any, you’re taking to adjust. Feel free to share your thoughts and experiences in the comments below — your perspective might be helpful to others in the same boat.
Also read: Australia soon to be second in world for retirement savings as superannuation pool soars
At 78 years of age and now having health problems I am having to choose between living in Australia by myself with no family or friends but I will get a age pension, or living overseas with family and friends but not have a pension or means of support. All because the pension stops after 26 weeks after leaving Australia. Travelling back to Australia and return every 26 weeks is getting too much for my health.
I think you have misunderstood Centrelink regulations. Having checked the same situation ourselves it seems clear that after 6 months overseas you DO get an Australian pension.
However the amount of pension relates to the number of years you have been resident in Australia prior to minimum official retirement age (65-67).
So if it is 35 years approx you get a full pension. If it is let’s say 17.5 years it would be a half pension.
Of course your assets/superannuation may effect your final pension regardless of where you live.
So please check AND RECHECK with Centrelink
Good luck
Unfortunately, I was feeling ok about retirement until the dreadful new aged care system was introduced recently – for those who fall into the aged “care” shredder the prospects are grim.
Support at home will now have harsh out-of-pocket fees and be unaffordable to most.
Worse still, if a stroke or bad fall consigns you to a nursing home, you are likely to lose all your savings, unless very rich.
Typically you must pay a bond of around $1 million, often more. It’s set at the median price of houses in the area.
Most of us don’t have that sort of money – the median super balance at 65yo+ is $200,000, less for women.
In that case, you must pay 8.4% per annum as interest on the $1 million you don’t have. That will soon burn up any savings.
Running out of money before they die is guaranteed for many who fall into residential “care”, and that fate is only one bad fall away.
Moral: squirrel away as much as possible – to be safe from ruin you need at least the $1 million or so for a bond, plus something left over to eke out an income to cover medicine, clothes, haircuts, etc.