Retirement is becoming a confidence challenge, not just a financial one

Retirement planning has traditionally been measured in financial terms. Savings balances, projected income, retirement age and lifestyle expectations remain essential markers of success.

Yet the findings from the CFS Rethinking Retirement 2026 report suggest another dimension is becoming increasingly important: confidence.

While Australia’s retirement system continues to mature, many Australians remain uncertain about their readiness for retirement. The research found 51% of Australians feel prepared for retirement, although only 10% describe themselves as extremely prepared. Preparedness has improved over the past three years, but uncertainty remains a defining feature of the retirement landscape.

A notable finding is the growing gap between aspiration and expectation. Australians would ideally like to retire at age 62, yet believe age 66 is more realistic. At the same time, the amount Australians believe they need for a comfortable retirement has increased by $183,000 since the previous survey to more than $1 million.

Taken together, these figures suggest retirement is not simply becoming more expensive. Many Australians are questioning whether their current trajectory will deliver the retirement they envisage.

The relationship between preparedness and confidence becomes clearer when looking at retirement concerns. More than half of Australians who feel unprepared for retirement say they worry about it, compared with just 15% of those who feel prepared.

What is interesting is that preparedness appears to influence more than financial outcomes. It is closely linked to how people feel about their future. In many cases, retirement confidence appears to stem not simply from accumulated wealth, but from having a clearer understanding of what retirement may look like and how it will be funded.

This aligns with broader findings in the report. Australians who receive financial advice are significantly more likely to feel prepared for retirement than those who do not receive advice, while also expecting to retire earlier. The findings do not suggest advice alone determines outcomes, but they reinforce the connection between planning, engagement and confidence.

The research also highlights the role that income certainty can play in retirement confidence. Solutions that support greater visibility over future retirement income may help address some of the uncertainty people associate with retirement, particularly concerns around running out of money or managing changing market conditions throughout retirement.

Within the CFS Retirement Advantage™ suite, Retirement Income Optimiser is one example of how retirement income planning can be considered earlier while preserving flexibility before retirement. Pension Bonus may also be relevant at the point of transition for eligible clients moving from CFS super into a CFS pension.

As retirement becomes increasingly personalised, confidence may become as important a measure of retirement readiness as balances and projections. The findings suggest Australians are not only looking for a pathway to retirement, but greater certainty around what retirement will feel like once they get there.

For clients seeking greater clarity around retirement income, strategies that combine retirement planning with income certainty may help support confidence alongside financial outcomes.

• Retirement Income Optimiser helps advisers improve retirement outcomes while preserving flexibility and keeping future options open.
• Pension Bonus is designed to reward eligible retirees who maintain their pension with CFS, helping to enhance retirement outcomes over time.