Retirement fears persist despite rising preparedness: CFS

Only half of Australians feel prepared for retirement despite gradual improvements in confidence, with concerns over savings, healthcare costs and financial security continuing to weigh heavily according to new research from Colonial First State (CFS).

The third annual Rethinking Retirement report found 51% of Australians feel prepared for retirement, up on previous years, but more than half (54%) remain worried they will not have enough money to live comfortably.

Concerns about unexpected health and aged care costs were cited by 50% of respondents while 37% feared out living their superannuation savings.

The pressure is particularly pronounced among Australians aged 50 to 59 with 61% concerned about whether they have accumulated enough savings to support a comfortable retirement.

The research also highlighted a growing disconnect between retirement aspirations and financial reality. Australians would ideally like to retire at age 62 but expect they will need to continue working until 66 on average.

At the same time, the amount Australians believe is required for a comfortable retirement has surpassed $1 million for the first time, rising by $183,000 since the previous survey.

CFS Superannuation chief executive Kelly Power said retirement had become increasingly complex for many Australians.

"What this research makes clear is thar retirement today is no longer just a financial transition. For many Australians, it brings a range of questions and considerations - from whether savings will be enough, to how to navigate an increasingly complex system," Power said.

Women continue to face greater retirement anxiety than men. Nearly two-thirds (62%) of women worry they will not have enough money to live comfortably in retirement, compared with 48% of men.

Women were also more likely to be concerned about healthcare and aged care costs and the possibility of exhausting their retirement savings. Only 43% of women said they felt prepared for retirement, compared with 59% of men.

The report also reinforced the role of financial advice in improving retirement confidence. More than three-quarters (77%) of Australians who receive financial advice said they felt prepared for retirement, compared with just 45% of those without an adviser.

Power noted reducing barriers to advice would be critical to helping more Australians retire with confidence.