For many Australians, retirement is no longer simply a question of whether they have accumulated enough money, it’s also about whether they feel confident enough to enjoy the life they have worked towards.
That confidence can be surprisingly difficult to arrive at.
The cost of living, healthcare expenses, volatile investment markets and longer life expectancies all make retirement planning more complex. At the same time, superannuation and retirement policy continues to evolve. Even when changes are intended to improve the system, speculation and media discussion can leave people wondering whether the plans they make today will still work tomorrow.
A recent survey found that only 52 per cent of Australians felt financially confident about retirement.i
Decisions and complexity
Australians are generally making decisions about superannuation, investments, tax, retirement income and government benefits, many years before they retire. However, important questions need to be asked before making a decision as these can have a significant impact at retirement.
Common retirement questions to consider include: When should I retire? How much can I afford to spend? Should I contribute more? Should my investment portfolio change?
Changes to the superannuation system can add another layer of complexity to these questions and so can discussions about possible changes. A media headline about superannuation or tax can prompt people to question whether their existing strategy remains appropriate, even when the proposed change may have little or no impact on them personally.
This is not an argument against reform – Australia’s retirement system needs to evolve to meet the needs of a changing society – but it does highlight the importance of having someone who can put changes into context.
With heightened geopolitical tension and market volatility, rising household budgets and healthcare pressures, these factors further impact how pre-retirees and those who have already retired, are feeling about their financial future.
Knowledge builds confidence
Research reveals that Australians who had a clear understanding of the actions they needed to take were three times more likely to feel highly confident about supporting their desired lifestyle in retirement.ii
It also matters for another reason. Lacking retirement confidence does not always sway people to save more in the years leading up to retirement, but it can lead them to spend less than they comfortably could afford to once they stop work.
Australia’s Retirement Income Review noted that many retirees were drawing down very little of their capital and that most people died with a substantial proportion of their wealth still intact.iii This does not mean leaving an inheritance is a bad outcome, but it does suggest that some people may be more cautious about spending money than they need to be.
For someone who has spent decades accumulating and protecting wealth, transitioning from saving to spending can be psychologically difficult. Without a clear understanding of what is sustainable, it can be tempting to keep working, delay experiences or simply spend less than their financial position allows.
The objective is not to encourage people to spend for the sake of spending. It is to give them the knowledge and confidence to make deliberate choices about their retirement lifestyle.
Confidence is about choice
Ultimately, retirement confidence should not be measured solely by whether someone believes they have “enough”.
It is about knowing what is possible. Can you travel? Help your children or grandchildren? Renovate the house? Pursue an interest? Spend more in the early years of retirement while you are healthy enough to enjoy it?
A good retirement plan should help answer those questions.
For some people, confidence may mean knowing they can afford to spend more than they initially thought. For others, it may mean making different choices about investments, tax or the timing of retirement. The important thing is knowing what choices to make.
Australia’s retirement system will continue to evolve. There will always be another announcement, another review and another headline about superannuation or tax.
The answer is not to try to predict every change. It is to have a plan that can adapt, and the knowledge to understand what those changes mean for you.
Because confidence in retirement is not simply knowing how much you have. It is knowing what you can do with it.
i AMP | Retirement Confidence Pulse 2026
ii Vanguard | How Australia Retires 2025
iii Australian Government Treasury | Retirement Income Review Final Report