Boomers choosing retirement over inheritance: new report

More older Australians are putting their own comfort first in retirement, while Generation X admits it is struggling to prepare for the years ahead.

For generations, many Australians saw leaving an inheritance as one of life’s final responsibilities but new research suggests attitudes are changing.

According to MLC’s 2026 Real Retirement Report, Baby Boomers are increasingly prioritising enjoying their own retirement over preserving wealth for the next generation. More than eight in 10 (82 per cent) say they would rather have a comfortable retirement than leave behind a significant financial legacy. Generation X isn’t far behind at 80 per cent.

The findings paint a picture of older Australians reassessing what retirement should look like after decades of work, rising living costs and longer life expectancies.

Living well comes first

Overall, three in four Australians said they would choose a comfortable retirement over leaving a substantial inheritance.

The result reflects a growing recognition that retirement savings may need to stretch further than previous generations anticipated.

Longer retirements, increasing healthcare costs and ongoing cost-of-living pressures are forcing many Australians to think differently about how they use the money they’ve spent decades building.

Rather than viewing retirement as a time to preserve assets, many appear determined to enjoy the lifestyle those savings were intended to provide.

Gen X feeling the pressure

While Boomers are redefining retirement, Generation X is wrestling with how to get there.

The report found Gen X is Australia’s least financially confident generation, with confidence only marginally improving since 2024. Many are still balancing mortgages, supporting adult children and caring for ageing parents while trying to build enough wealth for their own retirement.

Only 40 per cent of Gen X respondents say they have moved into active retirement planning, while fewer than one in five (17 per cent) strongly agree they have started planning. Just over half (51 per cent) say they regularly discuss finances, falling to 45 per cent among Baby Boomers.

Across the broader population, retirement confidence remains fragile.

Just 31 per cent of Australians believe they will be able to retire when they want, while almost two-thirds identify cost-of-living pressures as the biggest barrier to achieving their financial goals.

A retirement conversation

MLC Chief Customer Officer Renee Howie said many Australians were finding it increasingly difficult to balance today’s financial demands with tomorrow’s retirement aspirations.

“Having enough money to retire comfortably is now one of Australians’ most important life goals, yet most people don’t feel on track to achieve it.

“With cost-of-living pressures, interest rate rises and even uncertainty around what recent Federal Budget changes may mean for them, it’s understandable many Australians feel less in control of when and how they retire.”

Howie said simple steps such as reviewing superannuation, checking investment options and seeking financial advice could make a meaningful difference over time.

For many older Australians, however, the report highlights another reality: after decades of working and saving, retirement is increasingly being viewed as a time to enjoy life’s rewards, rather than simply preserve them for someone else.