Retirement optimism in Australia hits a five-year high despite global uncertainty

Despite ongoing global economic uncertainties, new research shows that Australians are feeling markedly more optimistic and confident about their retirement prospects than they have in recent years.

This surge in positive sentiment is reaching levels not seen in five years, reflecting a hopeful outlook even as financial pressures persist.

The insights come from the 2025 edition of the Global Retirement Reality Report by State Street Global Advisors, a comprehensive global study that surveyed over 4,300 employees across the US, UK, Ireland, Australia, and Canada who participate in defined contribution savings plans—like superannuation in Australia. The report explores workers’ attitudes toward retirement, their confidence in reaching financial goals, and how these feelings have evolved over time.

Among the 606 Australian respondents in this year’s survey, a notable 33 per cent expressed optimism about being financially prepared for retirement by their planned retirement age. This is a remarkable increase compared to 24 per cent in August 2023 and just 22 per cent back in May 2020, marking the highest level of retirement confidence seen in five years.

Australia ranks as one of the most optimistic countries globally regarding financial readiness for retirement, sitting just behind the US, where 34 per cent of respondents feel confident. In contrast, Canadian and UK participants reported the lowest optimism levels, both at 20 per cent.

What’s driving this newfound confidence among Australians? The survey points to three key factors:

• 43 per cent cited having little or no short-term debt, loans, or credit card bills,

• Another 43 per cent expressed confidence that their superannuation or retirement plan is invested wisely,

• While 40 per cent noted their financial ability to save for retirement as a strong influence on their confidence.

Jonathan Shead, Head of Investments for Australia at State Street Global Advisors, commented on the findings:

“While this year’s survey presents a hopeful picture, with respondents in Australia and globally generally optimistic about their retirement prospects, the impact of inflation and the broader economic environment remain real concerns over the long term. There are still 28% of Australian respondents expecting to partially retire and continue working, while over 10% cannot envision ever being financially secure enough to afford retirement,” he said.

“Australians identified inflation, increased cost of living, and medical expenses as the top three barriers negatively impacting their retirement confidence. Complex interactions between the public and private systems, concern about health insurance costs in an inflationary environment, and uncertainty about out-of-pocket costs are likely all detracting for retirement confidence for Australians. This highlights the tension between personal financial management and global macroeconomic uncertainty.

“In response, we are observing that a third of Australians have changed their outlook on retirement in the past six months, and many are adjusting their plans – either by delaying full retirement or embracing partial retirement. Additionally, many Australians plan to increase their short-term savings in the next six months, likely due to the market volatility we are seeing,” Shead added.

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