2025 Global Retirement Reality Report - Australia Snapshot
Updated on 9 September 2025 | 6 minute read | Jonathan Shead, Head of Investments, Australia, State Street Investment Management
Australian's retirement optimism has increased since 2023 and is high compared to global peers. But dig deeper, and some clear areas emerge where Australians could benefit from support.
The Global Retirement Readiness Report asks savers how they are feeling about their retirement. This year’s report surveyed 4,371 members of Defined Contribution (DC) schemes around the world. Countries covered include the US, the UK, Ireland, Canada, and Australia. Each country’s systems are unique, which results in differences in savers’ retirement readiness.
Retirement confidence jumped in Australia
Australians are feeling more optimistic about retirement. In 2023, only 24% felt confident about their retirement outlook - but by 2025, that number rose to 33%. Similarly, confidence in retiring as planned grew from 23% to 32% over the same period.
The survey was held in late March 2025 and early April 2025, as Australia headed into an election. It was the same time Trump's tariffs announcements were shaking the world.
The biggest drain on optimism in Australia was inflation and the cost of living (49% included it among their top 3 concerns), closely followed by the economy (40%). Inflation in Australia peaked in March 2023 before falling later in 2023 and into 2024. Inflation may be easing but it is still high. High prices and a weak economy pose real challenges to Australians’ retirement plans.
Easing Inflation in Australia
Source: FactSet, State Street.
Gender still matters
Across all age groups, women continue to have lower superannuation balances than men. Treasury estimates that this gap will continue, driven largely by differences in workforce participation and the gender pay gap. While progress has been made, ongoing efforts will be needed to close these disparities in the years ahead.
Australia’s Retirement Savings Gender Gap
Source: Australian Taxation Office, Individual Statistics 2021-22 Financial Year, data.gov.au.
The confidence gap is also significant. Only 24% of women are optimistic about their financial readiness for retirement or confident they can retire when planned. In contrast, more than 40% of men express confidence on both fronts.
Women were less likely to have investments outside super (40% vs 53%). They were also less likely to have a financial adviser (82% vs 76%). Mortgage debt (or housing costs) and inflation were bigger concerns for women (28% and 52%) than men (20% and 46%).
"I am not confident about my retirement. I will probably have to rely on my children. I am still working and receiving the Age Pension.”
Female, 65+
Retirement income issues
Transitioning from superannuation savings to a retirement income stream remains a big concern for Australians. Expectations around income in retirement also vary widely. Nearly half (48%) of respondents expect to need between 30% and 80% of their current income in retirement, while 22% said they don’t know how much income they’ll need.
Uncertainty about long-term financial planning is common. 65% expressed concern about not knowing how much they need to save for retirement to meet their income needs.
While “how much” might still be an open question, “where from” seems settled. More than any other country, Australians want to keep their money in their existing superannuation fund when they retire. Only 14% thought it was unlikely they would do this.
This is a good thing for Australian super funds. They may be grappling with retirement income product development, but it is clear they are working from a position of strength.
Likelihood of Keeping Money in Current Plan After Retirement
Source: State Street, GR3 2025 survey of 4,371 employed savers between 30 March 2025 and 7 April 2025.
Leaving an employer to retire isn’t the same catalyst to leave a plan in Australia as it may be in other countries. But there are other factors making super pension options popular. The industry has been working hard to simplify its systems. It is now easier for members to track their retirement savings and consolidate their accounts. Finding lost super is also easier. In contrast, around 40% of US respondents still had a retirement plan left with a previous employer.
Healthcare concerns surprising
In terms of retirement concerns, medical expenses rated higher for Australians (27%) than any other country, including the US. Inflation (49%) and the economy (41%) were top three considerations. Other concerns included the political climate (24%), mortgage debt or housing costs (24%), and no spare money to save (21%).
Retirement is about much more than an income stream. Concerns about health insurance costs in an inflationary environment are real. Out-of-pocket costs are also on the mind of Australians.
The financial dependency of children, or of elderly family members, are also fears. And some people find superannuation and the Aged Pension difficult to understand.
“For [retirement] support, I'd think having a solid financial plan, a comfortable savings or investment portfolio, and healthcare plans would be essential.”
Male, 18-34
Financial planning coming of age
Australians aren’t the only ones who want to maximise returns and minimise fees. These were the top two investment priorities in every country we surveyed. Financial advice can play a significant role in solving for these issues.
Australians that had an adviser were much more confident. Nearly two thirds (64%) of advised clients expect to be ready for retirement, compared to just 25% of unadvised clients.
Advised clients also showed greater openness to digital advice solutions. Only 15% were opposed to robo-advice, compared to 47% of unadvised clients.
Australians know that finances can be hard. For those interested in financial advice, help with investment advice and retirement planning was important. Debt management was third on the list, more than any other country in the survey. Estate planning (42%) and tax planning (41%) rounded out the top services.
Australian Household Debt Amongst Highest in the World
Source: International Monetary Fund, Global Debt Database, December 2024.
Fewer than 10% of respondents had received financial advice in the past six months. Among those who did, 68% got advice from an independent adviser and 37% from their superannuation plan.
Cost and confidence remain the primary barriers to seeking advice. Nearly half (49%) of respondents believe advice fees are too high, while 40% say they feel confident managing their finances on their own.
Let’s work together to help people awaken more confident futures.
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