17 August 2026
4 min read
With Australians expecting they need over $1 million to retire comfortably, advisers have an opportunity to help clients navigate affordability concerns with confidence.
Summary
The latest Rethinking Retirement report shows Australians now expect they need more than $1 million to retire comfortably.
The CFS Rethinking Retirement 2026 report found Australians now believe they need more than $1 million to retire comfortably.
That figure has increased by $183,000 since the previous survey.
The number is useful not because it should become a universal benchmark, but because it reflects how Australians are feeling about the cost of retirement. Inflation, housing, lifestyle expectations, health costs and longevity can all influence whether people believe retirement is within reach.
This finding also sits alongside the report’s preparedness data. Only 51% of Australians feel prepared for retirement, while only 10% feel extremely prepared.
The combination of rising perceived affordability thresholds and moderate preparedness helps explain why retirement can feel more like a challenge than a milestone for many Australians.
The concern is not only whether people have enough. It is whether they can see how their savings, income sources and future choices translate into a retirement they can understand.
The report’s top concerns add further context. More than half of Australians worry they will not have enough money to live comfortably, 50% are concerned about unexpected health or aged care costs, and 37% worry about outliving their super savings.
These concerns are familiar in advice, but the research gives them a current consumer lens. Affordability is not a narrow issue. It brings together income adequacy, longevity, costs, confidence and flexibility.
That is why retirement affordability conversations increasingly need to move beyond a single lump sum target.
A strategy discussion may consider account-based pension income, Age Pension interaction, lifetime income options, investment risk, access to capital and client preferences around certainty.
The research does not suggest every Australian needs the same amount or the same strategy. It shows that affordability expectations are rising, and that the need for clearer retirement income conversations is becoming more pronounced.
For many clients, the question is no longer only “how much is enough?” but “how will this actually work?”
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.