Early retirement planning sees two-fold increase in comfort

Yasmine Raso

Senior Journalist, Financial Newswire

8 December 2025

Joint research from Brighter Super and Investment Trends has confirmed that retirees who planned, prepared and saved for retirement early are almost twice as likely to enjoy a ‘comfortable lifestyle’ supported by higher superannuation balances.

According to the 2025 Retirement Income Report, which was informed by a survey of over 3,600 Australians over the age of 40, 75 per cent of retirees who began preparing for retirement before age 40 agree they are living comfortably, compared to just 44 per cent who began after age 60 and 16 per cent who didn’t plan at all.

On average, pre-retirees who reported in the survey that they felt prepared for retirement began planning 6.6 years ago and now hold an average superannuation balance of $438,000. For those who reported feeling unprepared, they only began planning 3.8 years ago and have an average of $177,000 in retirement savings.

“Australians who plan ahead generally feel more in control, have greater financial resilience and experience a smoother transition into retirement,” Kate Farrar, CEO of Brighter Super, said.

The survey also found that while retirement confidence levels have risen compared to last year – now at 38 per cent versus 29 per cent in 2024 – they still remain well below the highs recorded in 2021 of 60 per cent. A surge in retirement preparedness was also seen in the latest results from Brighter Super’s Ready for Retirement Index (RRI) which hit 58 points in 2025, up from 53 in 2024.

The report also indicated a growing retirement knowledge and literacy gap at the same time as satisfaction rates increased among those who engage with retirement products, with less than 30 per cent of retirees agreeing that they ‘clearly understand’ retirement income options while 76 per cent of those who use such products reported ‘high satisfaction’.

“The findings are clear – starting early builds confidence and creates a stronger foundation for retirement. For the industry, the challenge is to make retirement solutions simpler and more accessible, so more Australians feel empowered to take the steps that can improve their long-term wellbeing,” Julian Cappe, Head of Research at Investment Trends, said.

The survey also reinforced the importance of accessing financial advice via super funds for members to better prepare for retirement and help bridge the knowledge gap, with personalised advice coming in as the top priority.

“Retirement is shaped by the decisions you make today, not those put off for years. While the best time to start planning was years ago, the next best time is today. We want to empower our members to act early, seek advice, and build the confidence they need to retire well,” Jennifer McSpadden, Head of Retirement at Brighter Super, said.