More Australians are delaying their retirement as cost-of-living rises.
New research from Colonial First State has found most Australians would prefer to retire at 62, but now many expect they will need to remain in the workforce until around 66.
More than half of those surveyed said they were worried they would not have enough money to live comfortably in retirement, while 50 per cent feared unexpected health or aged care costs.
A further 37 per cent said they were concerned they may outlive their superannuation.
The study also found Australians have significantly changed their expectations for how much they need to retire comfortably, with workers now estimating they require around $183,000 more in superannuation than previously thought.
The perceived “comfortable” retirement benchmark is now above $1 million for the first time.
Colonial First State executive director of retirement and growth Marissa Powe said ongoing financial pressures were changing how people viewed retirement planning.
“Australians are understanding that cost-of-living continues to increase, there’s the cost of aged care and healthcare,”she said.
“They are just taking that all in knowing their retirement savings and super will need to go further than it ever has before.”
Official figures from the Australian Bureau of Statistics showed headline inflation eased from 4.6 per cent in March to 4.2 per cent in April, partly due to temporary government measures including reduced fuel excise and GST relief.
However, underlying inflation, measured by the RBA, rose to 3.4 per cent over the year to April, indicating continued price pressures in the economy.
The research also found Australians with access to financial advice were significantly more confident about retirement, with more than three-quarters saying they felt prepared compared with less than half of those without an adviser.
Colonial First State Superannuation chief executive Kelly Power said planning for retirement had become more complex.
“Planning for retirement is complex, but the path forward becomes much clearer with the right support in place,” she 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.”
Industry estimates continue to show rising costs for retirement. The Association of Superannuation Funds of Australia says a single homeowner now needs about $630,000 for a comfortable retirement, while couples require around $730,000.
Super Consumers Australia has noted that most retirees spend less than these benchmarks, but says a single retiree still needs about $322,000 in super to support modest annual spending, while couples need around $432,000.
The research also highlighted a gender gap, with nearly two in three women worried about having enough money in retirement compared with fewer than half of men. Women were also more likely to fear outliving their superannuation and facing unexpected health costs.
While confidence has improved over time, the gap remains, with 43 per cent of women now feeling prepared for retirement compared with 59 per cent of men.
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