New research has found 63% of Australians aged 45 and over are concerned or anxious about retirement according to the State of Retirement report, with almost 9 in 10 people worried they will run out of money.
The research, published by Aware Super, found one in 10 people retired later than they expected, with 55% citing financial necessity as the reason. Of those who had retired, one in five have returned to work either part or full time, with around a quarter for financial reasons.
Australians say they want the freedom in retirement to choose how they spend their time, exploring current or new hobbies, travelling, and enjoying time with friends and family.
But Aware Super CEO Deanne Stewart says for too many people planning for retirement and entering the next phase feel the process is overwhelming and confusing – and it doesn’t have to be.
“What the State of Retirement research tells us is that too many people don’t understand their options or how to make the most of their superannuation in retirement. We also know that many people are feeling uncertain about the future more broadly,” Ms Stewart said.
“What’s great is that there is a growing understanding about how super can work for you, for example, most people over 45 now realise that when you retire as much as half of your super balance is made up of investment returns1.
“But there are clearly still big gaps in knowledge, and getting advice at the right time makes an enormous difference. We see it as our job to offer help and guidance to our members and Australians more broadly so they can feel more in control in a world that feels uncertain.”
Super helpful super hacks
The research found that more than three quarters of Australians don’t know that they can retire with their super fund and continue to grow their savings well into retirement. By keeping their super invested, they can draw a flexible income and potentially benefit from a concessional tax rate, which can significantly enhance their financial security in later years.
In addition, over a quarter (27%) of people aged 45 and over don’t realise that superannuation can become a tax-free source of income in retirement. What this means is that if you move your super into an account-based pension or other retirement income product, rather than simply cashing out when you retire, your money remains invested and keeps generating returns for you. For example, if you retire with $400,000 and keep it invested, you could increase your income by $5,200 per year compared with if you cashed it out.2
Don’t put off getting advice
Ms Stewart has a message for people who are anxious or concerned about retirement planning: your super fund is here to help.
“One thing that most people don’t know is you can turn to your super provider to help you really map out how you want to live in retirement, advice on how much money you’ll need, and how to make sure your super keeps working, even when you stop.
“If you haven’t had a chat with your superannuation fund about planning for retirement, now is the time – no matter what age or life stage you’re at. Our research shows “not knowing” your options could cost retirees thousands of dollars over the course of their retirement.3
“We are passionate about offering advice and education to our members whichever way best suits them, whether it’s through our free My Retirement Planner tool, one-on-one discussions with our Member team, or anytime access via our online Aware Learn Hub. We want to give Australians the tools, guidance and confidence they need to plan for the future they’ve earned.”
The majority (91%) of Australians aged 45 and over believe that their super is for their own use during retirement and not necessarily to leave to their children or grandchildren.
"This evolving mindset reflects a broader shift in how Australians approach retirement—not just as a time for financial security, but as a phase of life defined by purpose, wellbeing, and connection.”
“As one of Australia’s largest super funds, we’re simplifying super and making it easier to help people to plan their financial future with confidence. We know that looks different for everyone, but we are dedicated to helping Australians shape a future that reflects the life they want - and deserve – to live in retirement.”
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2 Based on a 67 year old with $400,000 drawing an income stream until age 95. Retirement income assumed to be constant after it is deflated by 2.5% p.a. to account for inflation, and then rounded to the nearest $100. Retirement income includes the Aged Pension as at September 2024, indexed at 3.5% p.a. Investment returns within super are based on the investment objectives of the Conservative Balanced option and assumed to be 5.75% p.a. Investment returns for the bank account outside of super are assumed to be 3% p.a. Investment returns are assumed to be net of fees and tax. This example is for illustrative purposes only and is not intended to provide a forecast or guarantee on outcome. The case study is based on current regulatory requirements and laws, including tax rates, which may be subject to change.
3 Based on a 67 year old with $400,000 drawing an income stream until age 95. Retirement income assumed to be constant after it is deflated by 2.5% p.a. to account for inflation, and then rounded to the nearest $100. Retirement income includes the Aged Pension as at September 2024, indexed at 3.5% p.a. Investment returns within super are based on the investment objectives of the Conservative Balanced option and assumed to be 5.75% p.a. Investment returns for the bank account outside of super are assumed to be 3% p.a. Investment returns are assumed to be net of fees and tax. This example is for illustrative purposes only and is not intended to provide a forecast or guarantee on outcome. The case study is based on current regulatory requirements and laws, including tax rates, which may be subject to change.
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About the State of Retirement Report
The research was commissioned by Aware Super and was conducted by Lonergan Research. This study explores Australians 45 years of age and over views towards retirement, lifestyle during retirement and the Government aged pension. Lonergan Research surveyed 1,051 Australians 45+. Surveys were distributed throughout Australia including both capital city and non-capital city areas. The survey was conducted online amongst members of a permission-based panel, between 29 November 2024 and 9 December 2024.
About Aware Super
Meet Money Magazine’s Best MySuper Lifecycle Product 2024 and Canstar’s Outstanding Value - Superannuation in Australia for 2022-2024^: Aware Super. As one of Australia’s largest profit-for-members funds, we always remember whose money it is and whose future we’re looking after.
That means being super helpful in ways our 1.1 million members need, and sometimes in ways they don’t expect. From super returns for retirement of 8.98% p.a. over 10 years for our Aware Super FutureSaver High Growth option, to expert super advice and guidance for right now. We are committed to helping our 1.1 million members get more from their super, so they can get more for their future.
Visit aware.com.au
Contact details:
Courtney Hamilton-Foad
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M: + 61 451 331 384
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Madeline Garisto
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M: 0403 414 248