Uncertainty mounts among HNWs amid super policy changes

Yasmine Raso

Senior Journalist, Financial Newswire

17 March 2026

Against a backdrop of recent legislative changes to superannuation and tax policies, the retirement confidence of high-net-worth (HNW) individuals has plummeted over the last four years, according to new research commissioned by Generation Life.

The 2025/26 Navigating Uncertainty Report, which surveyed 650 HNW Australians and 354 financial advisers in late 2025, found that while majority rules that Australia’s superannuation system remains “strong at its core”, uncertainty is mounting over the impact of recent regulatory changes and ‘heightened’ taxation debate on long-term financial planning.

According to the research conducted by CoreData, 71 per cent of respondents are less confident about their financial security than they were in 2022, 69 per cent are less confident about retiring comfortably and 63 per cent have reduced their risk exposure in their investment portfolios.

As Parliament’s recent passing of the Division 296 super tax increase for balances between $3 million and $10 million, expected to commence from 1 July this year, confirms that quick policy changes can substantially affect long-term retirement planning, the survey indicates that retirement still remains the top financial focus for respondents – ahead of wealth transfer, wealth accumulation and lifestyle priorities.

“A secure, comfortable retirement is the ambition of every Australian – it’s their highest financial priority,” Felipe Araujo, CEO of Generation Life, said.

“But the journey feels less certain. Trust in Australia’s world-class superannuation system endures, yet confidence in the rules that surround it has weakened – shaped by years of shifting legislative change and taxation debate, of which Division 296 is only the most recent chapter.”

Survey respondents aged 60 and over reported the lowest levels of retirement confidence, feeling the brunt of the changes so close to retirement age; the research also found HNW Australians aged 30 to 49 were facing the highest levels of systemic pressure about their retirement, with many already making changes in response to the new policy settings.

This comes as superannuation policy is now dominating Australians’ “household concerns” – a marked move away from the grip inflation held in 2024 – with HNW respondents making several changes in their contributions and engagement with advice in response to the broader legislative landscape.

Approximately one-third of respondents who reduced their super contributions in the past year did so in response to the government’s proposed tax policy adjustments, while 40 per cent did so after consulting with an adviser.

“What we’re seeing is a meaningful shift in the questions Australians want answered,” Araujo said.

“Super-tax settings have now become a huge focus, alongside retirement and the great wealth transfer on the advice agenda, not because people are changing their goals, but because they want clear direction – certainty – on the rules that frame their post-accumulation plans.”

At the time of the survey only 56 per cent of respondents were familiar with Division 296, underscoring the importance of engaging with financial advice and signifying a new wave in demand for advice in retirement and legacy planning.

Among the respondents who were familiar with Division 296, 65 per cent said they supported the proposed changes, 65 per cent affirmed the proposal increased their confidence in the superannuation system, and only nine per cent felt less confident. Among those receiving advice, awareness of Division 296 increases to 62 per cent, compared to 38 per cent awareness among those without an adviser

“Australians are seeking clearer and more stable policy settings so they can plan with confidence,” Araujo said.

“Rule certainty is fundamental to long-term retirement planning, and with Division 296 now passed through Parliament for Royal Assent, advisers play a critical role in helping to translate such policy shifts into the right structures and decisions for their clients.

“With clear guidance, communication and well-designed long-term investment frameworks, Australians can move forward with much greater assurance.”