Some Australians felt comfortable in retirement even if they did not believe they had enough superannuation, according to new research.
Research firm Investment Trends’ Head of Research, Julian Cappe, said planning early for retirement provided super fund members with more options or levers to pull.
“If you need to build up your super balance, the best way to do that is have a high income,” Cappe told a media briefing on key insights from the new Brighter Super & Investment Trends 2025 Retirement Income Report.
The report, based on a survey of 3,679 Australians aged 40 and above, including 1348 retirees, between August and September, detailed Australians’ preparedness, expectations and confidence as they approached and moved through retirement.
Cappe said 94% of retirees with balances over A$750,000 (US$495,000) and less than 40% of those with less than $100,000 said they were living comfortably in retirement.
But he said a small majority with between $100,000 and $500,000 also said they had a comfortable retirement.
“What that tells us is that even without a large super balance, if you've taken appropriate steps to plan, to seek guidance and to prepare to have an income purchase retirement, you can feel just as secure as those larger balances,” Cappe said.
They may have had other investments outside super, retirement income products and cut spending.
The survey found Australians who planned early were nearly twice as comfortable in retirement with significantly higher super balances.
Pre-retirees who planned earlier overwhelmingly saved more, used more advice and took more action, resulting in far stronger financial readiness than those who felt unprepared.
The research found 75% of retirees who started preparing before age 40 reported living comfortably, compared to 44% who began after 60, and just 16% who did not plan at all.
“Australians who plan ahead generally feel more in control, have greater financial resilience and experience a smoother transition into retirement,” Brighter Super CEO Kate Farrar said in a media release.
