Retirement Out of Reach for Millions of Australians

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Retirement is supposed to be the time you finally relax and enjoy life — but for over 4 million Australians, it’s causing major stress.

New research from Finder shows that 1 in 5 Aussies are worried they simply won’t have enough in super or investments to stop working one day. In fact, 20% say they may never be able to fully retire, and many are already tightening their belts.

The Association of Superannuation Funds of Australia recommends singles have $595,000 and couples $690,000 in super to retire comfortably. But the reality? Most people are nowhere near that.

According to the ATO, the average super balance is around $172,000 — but the median is much lower: $66,000 for men and just $52,000 for women. That leaves a lot of people wondering how they’ll fund life after work.

“More and more people are worried that retirement will arrive before the money does,” says Pascale Heylar-Moray from Finder. “Insufficient super or savings could see millions of Aussies facing financial strain in their later years.”

And while the Age Pension is there to help, it’s not a guarantee — especially if your assets or income are too high to qualify.

Another 27% of Australians say they’re still unsure if they’ll have enough to retire, and 10% are planning to rely on other investments to make up the difference.

So, what can people do?

Some Aussies are taking a fresh approach — like “micro-retirement,” where they take shorter, self-funded career breaks every few years, instead of waiting for one big retirement at the end.

Others are turning to salary sacrificing, which lets you contribute more to super directly from your pay — and potentially pay less tax while building your savings.

“Super earnings under $30,000 are taxed at just 15%, so salary sacrificing can help grow your wealth and reduce your tax bill,” Heylar-Moray explains.

She also recommends checking in regularly on your super — make sure it’s performing well and that your employer is paying your 12% super guarantee contributions on time.

Because let’s face it — your future self will thank you for getting on top of it now.

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