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New research from CFS reveals Australians approaching retirement are carrying a significant mental load, with many uncertain about their financial readiness and whether they'll achieve a comfortable retirement.

Now in its third year, the CFS Rethinking Retirement report tracks how Australians feel as retirement approaches. The findings show that for many, retirement remains a financial challenge rather than a milestone to look forward to.

Just over half of Australians (51%) now say they feel prepared for retirement - an improvement on previous surveys, but the research shows there is still work to do for a majority of Australians to feel confident. 

More than half (54%) worry they won't have enough money to live comfortably, while 50% are concerned about unexpected health or aged care costs and 37% fear outliving their super savings.

The pressure is especially acute in the decade before retirement, with 61% of Australians aged 50–59 worrying about whether they have enough in savings to live comfortably. 

The gap between when Australians hope to retire and when they expect to is equally telling. On average, Australians aspire to retire at 62, but believe they will need to keep working until 66. This four-year gap points to a mismatch between ambition and financial confidence. 

There has also been a sharp shift in the amount Australians believe they need for a comfortable retirement. The research shows that the average amount Australians now believe is needed for a ‘comfortable’ retirement has moved above $1 million – an increase of $183,000 from the last survey.

Kelly Power, Chief Executive Officer of CFS Superannuation, said, “What this research makes clear is that retirement today is no longer just a financial transition. 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," added Ms Power.

Retirement pressure weighs more heavily on women

Women are significantly more likely to experience retirement-related stress, with nearly two in three (62%) worrying they won’t have enough money to live comfortably in retirement, compared with 48% of men. 

Women are also more likely to be concerned about unexpected health and aged care costs (53% versus 46%) and about the prospect of outliving their superannuation savings (41% versus 34%).

The gender gap has persisted despite gradual improvement over three years of CFS surveys. The proportion of women who feel prepared for retirement has risen from 29% to 43%, while men's preparedness increased from 44% to 59%. The distance between them, however, has remained largely unchanged - reflecting a structural confidence gap that persists across individual circumstances. 

When it comes to the type of retirement Australians believe they will achieve, only 35% of women believe they will have a comfortable retirement, compared to nearly half of Australian men. 

Financial advice plays a critical role in retirement outcomes

Financial advice is again a strong differentiator when it comes to retirement preparedness. More than three quarters of Australians who receive advice (77%) say they feel prepared for retirement, compared with less than half (45%) of those without an adviser.

Recent CFS member data reinforces this - those with a financial adviser are more likely to hold an investment risk profile suited to their life stage, rather than defaulting to more conservative approaches that can erode long-term retirement outcomes.

“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," added Ms Power.

“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.”

You can download the Rethinking Retirement report here.