Annual research into retirement attitudes around the world has shown the optimism and confidence Australians exhibit toward this phase of their lives has significantly improved over the past few years despite continued economic uncertainty and geopolitical challenges.
The “State Street Global Advisors Global Retirement Reality Report” for 2025 revealed among the 606 Australians surveyed that 33 per cent are optimistic about being financially prepared for life after work by their planned retirement age. This compares to 24 per cent expressing the same sentiment in August 2023 and 22 per cent in May 2020.
Further, the study identified the factors leading to the improved positive outlook across the country. To this end, 43 per cent of respondents said it was because they had little or no short-term debt, loans or credit card bills, another 43 per cent admitted their confidence stemmed from the belief their superannuation or retirement plan is invested wisely and 40 per cent intimated their optimism is formed from their ability to save for retirement.
State Street Global Advisors Australia head of investments Jonathan Shead noted the findings did not mean participants are not somewhat concerned with the current economic environment.
“While this year’s survey presents a hopeful picture, with respondents in Australia and globally generally optimistic about their retirement prospects, the impact of inflation and the broader economic environment remain real concerns over the long term,” Shead said.
“There are still 28 per cent of Australian respondents expecting to partially retire and continue working, while over 10 per cent cannot envision ever being financially secure enough to afford retirement.
“Australians identified inflation, increased cost of living and medical expenses as the top three barriers negatively impacting their retirement confidence.
“In response, we are observing that a third of Australians have changed their outlook on retirement in the past six months and many are adjusting their plans either by delaying full retirement or embracing partial retirement.”
Further insights showed 42 per cent of males surveyed expressed optimism about their retirement compared to 24 per cent of females who responded in the same way.
In addition, the report found Australians who are receiving financial advice were more confident with regard to their retirement. Here 64 per cent of advised clients expect to be financially prepared for retirement, whereas only 25 per cent of unadvised clients felt the same way.
The “State Street Global Advisors Global Retirement Reality Report” for 2025 surveyed over 4300 employees from the United States, United Kingdom, Ireland, Canada and Australia who participate in defined contribution retirement savings programs.
