Third of Aussies think retirement will be funded by inheritance: Natixis

Although Australia continues to climb in ranks as a desired retirement destination, now ranking sixth globally in the latest Natixis Investment Managers (Natixis IM) Global Retirement Index (GRI) - Australians remain "uncertain" about their financial future but remain reluctant to reach out for help.

Australia maintained its position in the top 10 for global retirement security, trailing Norway, Ireland, Netherlands, Switzerland, and Denmark, and followed by Germany, Luxembourg, Iceland, and Czechia.

Natixis IM has however raised concerns about retirement preparedness with a growing reliance on inheritance expectations and the significant advice gap.

On average, Australians think they need a balance of just over $1.1 million to retire securely, much lower than the global average of $1.46 million. But more than half (53%) of those surveyed predict they won't be able to save this much compared to only 39% globally.

The inability to fund retirement is why one in three Australians expect to substantially fund their retirement with an inheritance, as nearly half fear they won't have enough money to enjoy their retirement (49%).

Among the top concerns identified by investors were having enough money to left to pass on to their children (25%), healthcare and long-term care costs (34%), inflation eroding retirement plans (32%), and never saving enough to retire (35%).

The survey also found Australians are "under-advised" compared to their global counterparts, as more than half (54%) said they don't seek professional advice compared to 38% globally.

Further, nearly eight in 10 Australians (77%) said it is increasingly their responsibility to fund retirement on their own and, similarly, 76% believe government retirement programs do not adequately account for people living longer.

Aligning to the observations, the measurement of finances in retirement, where Australia previously ranked fifth globally in 2025, has now slipped by one place to sixth.

The health index has also seen Australia dropping two places to eighth, Natixis IM said it is unfortunately a result of declining life expectancy in part due to the rising rates of chronic disease.

Insured health expenditure declined indicating Australians might not have enough insurance cover, as more than two in five (44%) Australian retirees reported healthcare costs running high, well above the 31% global average, the firm said.

Natixis IM country head of Australia and New Zealand Danny King said Australia's retirement system remains one of the "strongest" globally, reflecting the success of its super system and investment prudential.

"However, the research highlights an emerging disconnect between the strength of the system and how people feel about their own retirement readiness," he said.

"The introduction of personalised professional advice via superannuation funds will play a critical role in helping people retire confidently, and make informed decisions throughout their retirement journey.

"Investing for and during retirement is a long-term game and accessible, professional advice is needed to support Australians in what is one of the most important investments in their lives."

Created in collaboration with CoreData Research, the GRI assessed retirement security across 44 countries using 18 indicators spanning finances in retirement, material wellbeing, health and quality of life.