Cost of living squeeze sees retirement delayed or paused

Yasmine Raso

Senior Journalist, Financial Newswire

21 January 2026

New research from online comparison site, Finder, has found rising cost of living pressures have forced Australians to either delay or pause their retirement to continue or re-enter the workforce.

A survey of 536 Australians over the age of 43 found 18 per cent had delayed retirement or re-entered the workforce in the past two years, with 11 per cent of those with the aim of easing an increased financial burden.

A further four per cent said they did so due to boredom. Just 43 per cent said they were not in the position where they had to come out of or delay retirement.

“Rising costs aren’t just squeezing younger Aussies – they’re hitting older people hard enough that some are delaying retirement or heading back to work,” Alison Banney, superannuation expert at Finder, said.

“While a handful are jumping back in because they want something to do, the majority are just trying to stay afloat.”

The research reinforced the standard set by the Association of Superannuation Funds of Australia (ASFA), which suggests debt-free single homeowners require $595,000 in superannuation to live a comfortable retirement and couples require $690,000.

“If you’re in a position to top up your super, even occasionally, it will compound over the years and make a big difference by the time you stop working.

“If you’re not keeping an eye on how your super is performing, you could miss out on the equivalent of a full year’s pay – or even more – by the time you reach retirement.

“The difference in returns between funds can be huge. A top performing fund can set you up for a comfortable retirement, while an underperformer can leave you just scraping by. It’s a good idea to review your fund every year to see how it stacks up against others, and whether its investment strategy still matches where you’re at in life.”