Many Australians are discovering that retirement planning isn’t going quite the way they hoped.
According to recent research from Finder, rising costs of living and insufficient retirement savings are forcing a growing number of older workers to delay retirement or return to the workforce, a trend that has serious implications for anyone thinking about their financial future.
The Reality: Delay or Ditch Retirement?
A Finder survey of Australians aged over 43 found that nearly 1 in 5 respondents (18%) have either postponed retirement or re-entered paid work in the past two years. The primary reason? Cost-of-living pressures.
This equates to around 1.26 million Australians who simply don’t have enough in superannuation or other investments to fully stop working or to enjoy the retirement lifestyle they envisioned.
While some people returned to work for social reasons like reducing boredom, the majority are doing so because their retirement planning hasn’t kept pace with economic realities.
What This Means for Your Retirement Plan
The findings highlight a critical gap in retirement preparedness and underline why early, active retirement planning with a financial adviser is more important than ever. Here’s what Australians need to know:
Superannuation Targets Are Substantial
- For a comfortable retirement, singles typically need around $595,000 in super, while couples require about $690,000 assuming they own their home and are debt-free.
- Even a modest retirement requires substantial balances, especially for renters.
Small Actions Can Have Big Impact
Finder’s experts urge Australians not to take a “set and forget” approach. Regularly reviewing your super fund’s performance, consolidating multiple accounts, and topping up where feasible can make a meaningful difference over time.
A Financial Adviser Can Help
Working with a professional financial adviser can help you:
- Evaluate your current retirement plan
- Set realistic contribution targets
- Choose investment strategies aligned with your risk tolerance and timeline
- Identify opportunities to maximise your superannuation growth
A tailored plan not only increases your chance of retiring when you want to, it also gives you confidence that your lifestyle goals are achievable.
Plan Early, Adjust Often
While some Australians are being forced to work longer than planned, others who start earlier and plan more actively tend to enjoy better retirement comfort and financial resilience.
With inflation proving more persistent than many expected, the cost of living shows little sign of easing in the near term. Ongoing pressures such as higher housing costs, insurance premiums, energy prices and everyday essentials continue to erode household purchasing power, particularly for those approaching retirement. At the same time, rising government debt levels are increasing long-term fiscal pressure, making it increasingly uncertain whether future governments will be able to sustain the generosity of age-based government pensions at current levels. As a result, Australians can no longer afford to rely solely on the government to fund their retirement, placing greater responsibility on individuals to prioritise saving for retirement through superannuation and structured long-term planning, ideally with the support of a financial adviser.
Evidence shows that people who begin planning and saving earlier generally feel more prepared as they approach retirement.
Retirement Planning Isn’t Optional — It’s Essential
The trend of delaying retirement shouldn’t be ignored. Rising living costs and changes in workforce participation mean that even well-intentioned plans can fall short without proactive management.
Whether you’re years away from retiring or already thinking about future options, now is the time to:
- Review your superannuation balances
- Understand the impact of delaying retirement
- Work with a qualified financial adviser to build a robust, personalised retirement strategy
Need Help Reviewing Your Retirement Plan?
If the thought of retirement planning feels overwhelming, you’re not alone and you don’t have to figure it out by yourself. A financial adviser can help you navigate the complexities of superannuation, investment choices, and income planning so you can approach retirement with confidence.
Contact us today for tailored advice and strategies designed to help you retire on your terms.