Majority of Australians anxious about retirement as super knowledge gaps persist, report finds

By Newsdesk

March 27 2025
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A new study by Aware Super has revealed that a significant majority of Australians aged 45 and over are feeling anxious about retirement, with nearly nine in ten respondents concerned they will run out of money during retirement.

Majority of Australians anxious about retirement as super knowledge gaps persist, report finds

The **State of Retirement** report found that 63 per cent of Australians in this age group are worried about retiring, with one in ten retiring later than expected—more than half of whom did so out of financial necessity. Among those who had already retired, 20 per cent have returned to work, and around a quarter cited financial pressures as their reason for doing so.

Aware Super chief executive Deanne Stewart said the findings highlighted widespread uncertainty and a lack of understanding about how to make superannuation work in retirement.

“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,” Ms Stewart said.

“We also know that many people are feeling uncertain about the future more broadly.”

Ms Stewart said that while awareness around the importance of investment returns had grown, with most people over 45 understanding that nearly half of their super balance at retirement comes from investment returns, there were still major knowledge gaps.

The research found that more than three quarters of Australians did not realise they could leave their super invested in retirement to draw a flexible income, potentially benefiting from concessional tax treatment and ongoing returns.

Additionally, 27 per cent of Australians aged 45 and over were unaware that super could become a tax-free income source in retirement. Aware Super provided an example showing that keeping a $400,000 super balance invested rather than cashing it out could deliver an extra $5,200 in annual income.

Ms Stewart encouraged Australians to seek guidance early.

“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,” she said.

“Our research shows ‘not knowing’ your options could cost retirees thousands of dollars over the course of their retirement.”

She said Aware Super was committed to providing access to financial advice and tools, including its free My Retirement Planner, online learning hub and one-on-one support through its member services team.

The report also revealed a shift in attitudes toward retirement wealth, with 91 per cent of respondents saying their superannuation was primarily for their own use rather than something to pass on to 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,” Ms Stewart said.

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