Australians who begin planning for retirement early enjoy significantly greater comfort and financial security later in life, according to new national research released late last week by Brighter Super and Investment Trends.
The ‘Brighter Super & Investment Trends 2025 Retirement Income Report’ reveals a stark divide between those who start preparing early and those who delay or avoid planning altogether. Three-quarters of retirees who began preparing before age 40 report living comfortably in retirement. That figure drops to 44% for those who started planning after 60 and falls sharply to just 16% for those who never planned.
“Australians who plan ahead generally feel more in control, have greater financial resilience and experience a smoother transition into retirement,” said Brighter Super CEO, Kate Farrar.
The report shows that preparedness builds over time. Pre-retirees who feel ready typically began planning more than six years ago and hold an average super balance of $438,000. In contrast, those who feel unprepared started planning less than four years ago and have an average balance of $177,000.
The Brighter Super ‘Ready for Retirement Index’ (RRI) climbed to 58 points in 2025, up from 53 last year. Brighter Super members outperformed the national average at 60 points.
But despite these gains, national confidence remains subdued. Only 38% of Australians say they feel prepared for retirement – an improvement from the 29% recorded in 2024, but still well below the 2021 peak of 60%.
The income expectations gap is also narrowing. Pre-retirees estimate they will need a median of $4,300 per month in retirement but expect to receive around $3,300 – a 23% gap, improved from 31% last year.
The report highlights persistent knowledge gaps around retirement income products. Fewer than 30% of retirees clearly understand their options, yet 76% of those using retirement income products report high satisfaction. The findings suggest Australians benefit when they engage with available solutions, but many need more support to do so.
Demand for advice from super funds remains strong, with personalised guidance the top priority for many members.
To improve accessibility, Brighter Super has introduced a new advice fee structure expected to cut the average cost of retirement advice by nearly 50%, with fees able to be paid from members’ super accounts.
“Retirement is shaped by the decisions you make today, not those put off for years. While the best time to start planning was years ago, the next best time is today. We want to empower our members to act early, seek advice, and build the confidence they need to retire well,” said Brighter Super Head of Retirement, Jennifer McSpadden.
Investment Trends Head of Research, Julian Cappe, said the findings reinforce the importance of early engagement.
“The findings are clear – starting early builds confidence and creates a stronger foundation for retirement,” Cappe said.
“For the industry, the challenge is to make retirement solutions simpler and more accessible, so more Australians feel empowered to take the steps that can improve their long-term wellbeing.”
With confidence still below historical highs, Brighter Super says it will continue simplifying retirement options and expanding advice services to help Australians prepare earlier – and retire better.
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