Financial uncertainty following savers into retirement: T. Rowe Price

Newly-released research from global asset manager, T. Rowe Price, has uncovered reports of significantly low levels of optimism, certainty and security when it comes to considering standard of living and financial situations during retirement.

The survey of over 7,000 respondents based in the United States, Australia, Canada, Japan and the United Kingdom who are currently saving for retirement, found approximately 34 per cent expect to have to work part-time in retirement at the same time as 17 per cent are concerned they will run out of money after they retire and only 27 per cent are confident they could weather a major financial shock during retirement.

Australian respondents were among the most pessimistic about retirement outcomes and financial security in retirement, with only 23 per cent confident that they will “will live as well or better as I did when I was working”. They also reported a marked gender gap in retirement confidence, with 31 per cent of men and only 15 per cent women reporting ‘high confidence’.

“Research is at the heart of everything we do,” Jessica Sclafani, global retirement strategist at T. Rowe Price, said.

“It helps us understand the evolving needs of retirement savers around the world. Longer life spans, financial uncertainty, and shifting expectations are redefining retirement—transforming it from a fixed destination to an evolving journey that demands new thinking from both savers and the industry.

“By studying these shifts in attitude, we can better understand what savers need today and empower them with the strategies and solutions that can build financial security, confidence, and optimism for the future.”

Around 50 per cent of global respondents said they expect a recession to hit by mid-2026, with inflation remaining as the highest concern (42 per cent) followed by geopolitical tension (30 per cent) and interest rates (27 per cent). The recession result was higher in Japan (62 per cent) and Canada (56 per cent).

Australian respondents also ranked family, friends and co-workers and government websites and publications as the two highest sources of advice for retirement, coming in below the global average for human advisers, superannuation funds, and other tools, resources and calculators. Across all sources of financial advice and support, the UK was the only country surveyed to rank above the global average, closely followed by the US.

“As we continue to expand our global reach, T. Rowe Price remains focused on turning insights into action,” Michael Davis, head of global retirement strategy at T. Rowe Price, said.

“These findings will shape the solutions we develop and guide how we partner with employers, providers, and policymakers to drive meaningful progress. We are committed to strengthening financial confidence and delivering better retirement outcomes across every region we serve.”