Foreword
Australia can be proud that its retirement system is among the strongest in the world. Australians now have more than $4.4 trillion invested in superannuation and our retirement savings pool is on track to become the second largest in the world by the 2030s.
Yet retirement is also evolving. Australians are living longer, housing costs are reshaping expectations and navigating the financial system has become increasingly complex. While younger Australians are on track to accumulate larger superannuation balances than today's retirees, they are also more likely to carry mortgage debt or continue renting later in life.
This fourth edition of Vanguard's How Australia Retires report explores how Australians are preparing for retirement, how confident they feel about their prospects and the factors shaping retirement outcomes. We examine the role of financial literacy, retirement planning, superannuation engagement, housing and lifestyle expectations, while also considering how the broader retirement system may evolve in the years ahead.
Our findings suggest small actions today can make a big difference tomorrow. Developing a retirement plan was the factor most strongly associated with confidence, highlighting the importance of planning ahead. At the same time, we see opportunities for policymakers, industry and superannuation funds to help Australians better navigate retirement by strengthening financial literacy and improving access to guidance and advice.
We are grateful to the almost 2,000 Australians who shared their experiences and perspectives as part of this research. We hope these findings provide valuable insights for current and future retirees, industry participants and policymakers, and contribute to ongoing discussions about how Australia can continue to strengthen its retirement system now and into the future.
Daniel Shrimski
Managing Director, Asia Pacific
Vanguard
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