17 August 2026
4 min read
Australians want to retire earlier than they expect to. The gap is commercially and strategically poignant.
The CFS Rethinking Retirement 2026 report identifies a simple but telling gap: Australians would like to retire at 62, but expect 66 is more realistic.
The four-year difference is more than a headline statistic. It captures the tension between aspiration, affordability and confidence.
For clients, the gap may show up as a question about whether to work longer, contribute more, spend differently, shift investment strategy, downsize, use the Age Pension, change retirement income structures or accept a different retirement lifestyle.
The report also found Australians believe they need more than $1 million to retire comfortably, up $183,000 from the previous survey. Retirement expectations are not standing still.
These findings suggest the retirement conversation is becoming less about a single target date and more about a range of possible pathways.
Some clients will want to maximise expected income. Others may prioritise flexibility, certainty, access to capital, estate planning or the ability to transition gradually from work to retirement.
The report reinforces that retirement is not universal or linear. That statement is important because it reflects the way advice is already evolving.
Retirement is increasingly a series of decisions rather than one decision. Timing, income, investment risk, Centrelink treatment, aged care and legacy can each become more or less important depending on the client’s circumstances.
The reality gap is therefore useful because it opens a more practical discussion: if retirement at 62 is the aspiration and 66 is the expectation, what needs to change for the client to make a more confident choice?
Within the broader CFS Retirement Advantage™ product suite, Retirement Income Optimiser and Pension Bonus support different parts of that journey. Retirement Income Optimiser can help preserve future lifetime income strategy optionality. Pension Bonus can support eligible clients at the point they move from CFS super into a CFS pension.
The research does not suggest every client wants the same retirement. It suggests many Australians are still trying to understand what retirement will realistically look like.
That is where the gap becomes more than a statistic. It becomes a starting point for strategy.
CFS Retirement Solutions
CFS Retirement Solutions bring together products, tools, specialist support and education to help advisers navigate the transition to and through retirement. Designed to support greater certainty, flexibility and choice, the suite helps advisers build retirement strategies tailored to each client's goals, circumstances and evolving needs.
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Colonial First State Investments Limited ABN 98 002 348 352, AFSL 232468 (CFSIL) is the responsible entity and issuer of products made available under FirstChoice Investments and FirstChoice Wholesale Investments. This article is based on current requirements and laws as at 10/08/2026. While all care has been taken in preparing the information contained in this article (using reliable and accurate sources), to the extent permitted by law, no one including AIL and/or CFSIL, nor any related parties, their employees or directors, accept responsibility for loss suffered by anyone from reliance on this information. This article provides general information for the adviser only and is not to be handed to any investor. It doesn‘t take into account anyone’s individual objectives, financial situation, needs or tax circumstances. You should read the relevant Product Disclosure Statement (PDS) and Financial Services Guide (FSG) before making any recommendations to a client. The PDS and FSG can be obtained from www.cfs.com.au or by calling us on 13 18 36.