Retirement preparedness still lagging despite higher engagement

Yasmine Raso

Senior Journalist

12 June 2026

New research from life insurer, TAL, has not only found a growing “disconnect” between higher levels of financial engagement and the lagging efforts of pre-retirees to take action to prepare for retirement, but also a gap for super funds to deliver more tailored financial guidance on retirement planning.

According to the second edition of TAL’s ‘What I Wish I Knew About Retirement’ report, which was informed by survey of 2,000 Australian pre-retirees and retirees aged 55 and over, approximately 66 per cent of pre-retirees reported they were engaged with their finances at the same time as 33 per cent said they have no taken no action to prepare for retirement.

Building on the first edition released in 2024, the new report found pre-retirees were largely focused on financial security given the impact of cost of living pressures on retirement planning, with ‘an income that lasts a lifetime’ and ‘income keeping pace with inflation’ listed as the top two features of retirement products they value the most.

The research also indicated a change in retirement expectations among pre-retirees, with close to 50 per cent expecting to have less spending power once they retire and 36 per cent now expecting to continue to work past the age of 70 (compared to 27 per cent in 2024). Similarly, almost half of pre-retirees polled expect their superannuation to run out before their retirement ends, with 33 per cent expecting retirement to last longer than 20 years.

When it comes to those already retired, 48 per cent of them had taken no “meaningful action” to plan for retirement – which has increased by nine per cent since 2024. Among those who did prepare, only 25 per cent started before their 50s and more than 33 per cent started in the 60s or later.

“People care deeply about their financial futures and they’re paying attention – but we don’t see that in the actions they’re taking to plan for this critical life stage. Many feel they don’t have all the information they need,” Shaun Bransdon, General Manager, Retirement and Wealth at TAL, said.

“Super funds are stepping into this opportunity, building on the trust developed with members over their working lives: 64% of pre-retirees say they trust their fund to advise on retirement needs.

“Options like guided settings, information on how different retirement income options work together with the Age Pension, and tools that help them make decisions that suit their circumstances, could help more Australians approach retirement with confidence.

“The gap between expectation and reality can have lasting consequences.

“If you’re planning to work until 67 but have to leave at 62, you’ve lost five years of contributions at peak earning capacity. For many, that’s significant.”

While the satisfaction ratings among respondents across several retirement income strategies remained somewhat high, the levels of financial literacy did not; 62 per cent of pre-retirees are unfamiliar with how pension accounts, lifetime income products, accumulation accounts or lump sums work and 87 per cent would want to learn more about what’s on offer from their super fund.

“Retirement income strategies work best when flexibility is combined with certainty. And our research shows this is increasingly important to people,” Brandson said.

“Account-based pensions provide growth potential and capital access for active years, while lifetime income streams support spending confidence and can reduce Age Pension reliance.

“Without certainty about future income, even retirees with adequate savings may default to conservative spending. Product design can help – giving people confidence to enjoy their retirement while knowing their essential needs are covered.”