Retirement uncertainty remains despite rise in confidence levels

A new global survey commissioned by MFS Investment Management has found that uncertainty over the ability to retire comfortably remains elevated, despite confidence levels rising since last year.

Of the 700 Australian superannuation members and more than 300 retirees across Australia, Canada, the United States and the United Kingdom who responded to the 2025 MFS Global Retirement Survey, only 45 per cent of retirees were confident they have enough assets to fund their retirement and 39 per cent of Australian members felt confident they would retire at the age they intend to.

Compared to 2024’s results, there was a sharp surge in the number of superannuation members who feel they won’t be able to retire – with 38 per cent in 2025 compared to 28 per cent the previous year – and those who expect to work longer than initially planned, at 64 per cent this year compared to 60 per cent last year.

Respondents also highlighted a persistent concern in saving more for retirement than originally planned, with 75 per cent of super members in agreeance. Housing costs were the top-mosted cited concern, followed by day-to-day living expenses and the impact of inflation, leaving 33 per cent of super members to modify their investments over the past year, compared to 25 per cent in 2024.

“While it’s natural for financial concerns to prompt adjustments, it’s crucial for investors to stay focused on long-term goals,” Josh Barton, Senior Managing Director and Head of Australia and New Zealand at MFS Investment Management, said.

“Remaining invested over the long term allows members to benefit from compounding returns and ride out market fluctuations, ultimately helping secure a more stable retirement.”

The report also found that 54 per cent of respondents named their super fund as their primary source of advice for retirement planning decisions, with many also consulting financial planners, media, online investment services, family and friends.

Retirement confidence levels have also risen alongside appetite for environmental, social and governance (ESG) options in retirement investments, echoed by 81 per cent of respondents compared to 73 per cent in 2024.

“It’s encouraging to see conviction improve among members and retirees, yet our study shows that most Australians remain unsure about their journey, and that despite higher mandated and incentivised contributions, cost-of-living pressures continues to weigh heavily on members,” Barton said.

“Younger generations seeking advice earlier and adopting digital tools is a positive sign for improving retirement confidence and creating a smoother retirement journey, especially as high-quality advice models and digital innovations come together.”