Retirement readiness in crisis as financial pressures mount: CFS

Yasmine Raso

Senior Journalist

2 June 2026

A crisis of financial confidence has taken hold of Australians when it comes to retirement, according to the latest edition of Colonial First State’s (CFS’) annual Rethinking Retirement report, as many remain largely concerned over whether a ‘comfortable retirement’ is within their means.

Informed by a survey of just under 2,000 Australian adults with a super account, the report found that while there was some improvement on previous survey results when it comes to the number of Australians feeling prepared for retirement (now at 51 per cent) the increase in financial concerns signifies “retirement remains a financial challenge rather than a milestone to look forward to”.

Approximately 54 per cent of respondents worry they don’t have enough money to live comfortably in retirement, 50 per cent anticipate coping with increased financial pressure due to unforeseen health or aged care costs, and 37 per cent are concerned they will outlive their superannuation savings.

These results were concentrated particularly around the 50-59 age cohort as the last decade pre-retirement, with 61 per cent voicing concerns about living a ‘comfortable retirement’. Similarly, the report also highlighted a gap in Australians’ retirement expectations versus reality, with many expecting to retire at the age of 62 but believe they will not have the means to retire until the age of 66.

CFS noted that this discrepancy between “ambition and financial confidence” was also reflected in the average amount selected by respondents as now needed to fund a ‘comfortable retirement’ creeping over the $1 million mark, a $183,000 increase from the previous survey.

“What this research makes clear is that retirement today is no longer just a financial transition,” CFS Superannuation chief executive, Kelly Power, said.

“For many Australians, it brings a range of questions and considerations – from whether savings will be enough, to how to navigate an increasingly complex system. These are challenges many people are working through, and they need the right support to do so with clarity and confidence.

“Retirement is not a universal or linear experience. It is deeply personal, and so are the questions people bring to it. That is why we believe Australians should have access to the right guidance and support to help them approach this stage of life feeling informed, prepared, and in control.”

The research also highlighted the disproportionate impact of ‘retirement-related stress’ on women and how this is exacerbated the gender superannuation gap, as 62 per cent of women report worrying about running out funds in retirement compared to 48 per cent of men.

Women were also more likely to be concerned about unexpected health and aged care costs (53 per cent compared to 46 per cent of men) and potentially outliving their super savings (41 per cent versus 34 per cent).

While the number of women feeling prepared for retirement has risen since the last CFS survey from 29 per cent to 43 per cent, only 35 per cent feel they will have a comfortable retirement. While men matched the preparedness trajectory (44 per cent to 59 per cent), closer to half believe they will retire in a comfortable position.

The report also showcased the positive impact financial advice had on retirement confidence and readiness, as 77 per cent of respondents who have engaged an adviser feel prepared compared to 45 per cent who haven’t.

“The Rethinking Retirement report consistently shows that access to advice makes a tangible difference. Australians who receive it feel meaningfully more confident about retirement. Planning for retirement is complex, but the path forward becomes much clearer with the right support in place,” Power said.

“That’s why improving access to financial advice is critical. We strongly believe that reducing barriers to advice, like cost, will help more Australians get the support they need to plan and retire with confidence.”