Retirement confidence highest since 2020: SSGA

Despite persisting cost-of-living pressures, economic uncertainty, and heightened retirement costs, retirement confidence has increased from 24% in 2023 to 33% in 2025.

Australia now sits just behind the US (34%) as one of the most optimistic countries regarding retirement readiness financially, with the survey pointing to financial planning as a stabiliser of retirement confidence for many Australians.

State Street Global Advisors' (SSGA) Global Retirement Reality Report shows Australians are increasingly becoming more optimistic and confident about their retirement, with levels reaching a five-year high.

Among the 606 Australians surveyed, a third (33%) expressed optimism about being financially prepared for retirement by their planned retirement age (66), a notable increase from 24% in August 2023 and 22% in May 2020.

The survey identified the top three factors behind the increased confidence: 43% cited little to no short-term debt, another 43% cited wise investment of their super or retirement plan, while 40% noted the ability to save as the reason.

Further, 64% of advised clients expect to be financially prepared for retirement, while only 25% unadvised clients have the same expectation.

Still, less than 10% have sought advice in the past six months, SSGA found.

Of those that did, 68% sought advice from an independent adviser and 37% from their superannuation fund.

Interestingly, 40% refused to seek advice as they were confident in their own abilities - however this confidence does not necessarily translate into successful investments.

SSGA head of investments for Australia Jonathan Shead said although the numbers are a positive, it shouldn't be viewed as a silver bullet.

"There are still 28% of Australian respondents expecting to partially retire and continue working, while over 10% cannot envision ever being financially secure enough to afford retirement," Shead stressed.

"Australians identified inflation, increased cost of living, and medical expenses as the top three barriers negatively impacting their retirement confidence.

"This highlights the tension between personal financial management and global macroeconomic uncertainty."

Shead reinforced that many Australians are altering their plans in the face of uncertainty.

"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," Shead shared

"Additionally, many Australians plan to increase their short-term savings in the next six months, likely due to the market volatility we are seeing."