17 September 2026
Internet searches of retirement often surface joyful images of cruises, golf, beaches and bowls, but new HESTA insights indicate that’s simply not what most Australians expect their retirement to look like.
The survey of HESTA members found just one-in-nine (11%) believe the retirement they see in media reflects the retirement they see for themselves1.
HESTA Chief Experience Officer Lisa Samuels said the nature of retirement was changing, and the system needed to modernise so more Australians could retire on their terms. This includes removing barriers discouraging pensioners from working more and giving super funds the ability to proactively help members transition into the right retirement products.
“There is clearly a significant gap between the stock image of retirement and the reality most Australians are facing into. Retirement is different for everyone and Australians are looking for support to retire their way,” Ms Samuels said.
“More than 2.5 million Australians are expected to retire over the next decade and right now, many are just focused on getting through next week. And for those beyond retirement age, we are seeing large numbers of people wanting to return to work later in their lives to support their finances or retain connection to their communities.
“It’s in this environment that we need to look at further ways to modernise the system so that it can help more Australians retire the way they want to. These proposed reforms range from practical fixes for pensioners in the workforce to new powers for funds to guide members into suitable retirement products at the right moment.”
The call to focus on building a modern retirement system comes amid ongoing cost-of-living challenges, with one-third of all respondents saying cost-of-living pressures had affected their ability to manage their super.
The survey also found the average age members want to retire is 66, a year prior to when Australians are eligible to claim an age pension but six years after they can begin accessing their superannuation savings.
“When we asked members for words that come to mind when thinking about their future retirement, the most common weren't ‘cruises’, ‘golf’, ‘travel’ or even ‘relaxed’. Instead, leading the way were ‘comfortable’, ‘time’, ‘happy’, and ‘work’, alongside several references to feeling ‘anxious’. This is the real life experience many Australians expect,” Ms Samuels said.
Key changes HESTA is calling for to modernise the retirement system so it is simpler and more flexible, include:
- Support pensioners to work more and keep more of what they earn, by removing employment income from the Age Pension Income Test.
- Prompt members to specific retirement products, to support timely transition to the retirement phase of superannuation.
- Allow members to top up their retirement income streams with income from work.
- Establish data sharing between funds and government agencies, to unlock data to deliver better advice, engagement and services.
More information on these proposals can be found here.
About HESTA
HESTA is one of the largest superannuation funds dedicated to Australia’s health and community services sector. An industry fund that's run only to benefit members, HESTA now has more than one million members (around 80% of whom are women) and currently manages approximately $107 billion* in assets invested around the world.
*Information is current as at the date of issue.
1 Based on a survey of 437 HESTA members conducted in May 2026.
