Retirement confidence slides in Australia

Australians are feeling less confident about retirement, with retiree confidence and pre-retirement preparedness falling sharply over the past six months.

New research from Brighter Super found cost-of-living pressures, market volatility and global economic uncertainty have eroded optimism.

Brighter Super's 2025-26 State of Retirement report found national retiree confidence dropped 13 percentage points to 47% in 2026 from 60% a year earlier, while the proportion of pre-retirees who feel prepared for retirement fell to 31% from 38%.

Brighter Super chief executive Kate Farrar said the finding suggest last year's improvement in retirement sentiment was driven more by favourable market conditions than stronger long-term financial preparedness.

"This report reinforces how quickly sentiment can shift with changing economic conditions, and the need to focus on long-term preparedness rather than short term confidence," Farrar said.

"The data suggests many Australians still judge their retirement readiness through the lens of recent market performance rather than long term financial preparedness."

The report, based on Investment Trends surveys conducted between 2024 and 2026, found Queensland continued to outperform the national average despite broader decline. Retiree confidence in Queensland stood at 50% compares with 47% nationally, while 33% of Queensland pre-retirees felt prepared for retirement versus 31% across Australia.

Investment Trends head of research Julian Cappe said Queensland continued to perform better than the national average, while Brighter Super member reported even stronger outcomes.

At the fund level, Brighter Super members bucked the broader trend, with retiree confidence climbing to 76% in 2026 from 50% in 2024. Pre-retiree preparedness among members remained stead at 38%, despite declines across both Queensland and Australia.

Farrar attributed the stronger member outcomes to the fund's focus on retirement support and advice.

"This highlights the impact of our sustained investment in accessible guidance and affordable advice. We're committed to ensuring all members can retire confidently with the help of advice," she said.

The report also found Australians who begin planning earlier are nearly twice as likely to enjoy a comfortable retirement, reinforcing the importance of engaging members well before they leave the workforce.