Most Australians remain unsure about their retirement prospects despite a modest lift in confidence over the past year, according to new findings from MFS Investment Management.
MFS’s 2025 Global Retirement Survey — which canvassed 700 Australian superannuation members and more than 300 retirees across four major markets — found only 39% of local super members feel “very or extremely confident” they will be able to retire at their desired age. Among retirees, just 45% believe their savings will deliver sufficient cashflow throughout retirement.
Both measures are slightly stronger than in 2024, but they underline a persistent gap between aspiration and reality as households continue to navigate elevated costs and weaker purchasing power.
More Australians now doubt they’ll retire at all
The survey highlights a sharp rise in Australians questioning whether retirement is still feasible. Some 38% of members now say they no longer believe they will be able to retire — up markedly from 28% last year — while nearly two-thirds (64%) expect to work for longer than originally planned.
Three-quarters of members also say they need to save more than they once anticipated, reinforcing that long-term planning remains strained by inflation and housing pressures. Housing costs have now overtaken day-to-day living expenses as Australians’ top financial concern, followed closely by the impact of inflation on purchasing power.
Those pressures are prompting more Australians to adjust their retirement settings. Around 33% of members changed their retirement investments over the past year, up from 25% in 2024.
Josh Barton, senior managing director and head of Australia and New Zealand at MFS, noted that heightened uncertainty is pushing people to reassess their strategies — but the bigger challenge is staying on course.
“While it's natural for financial concerns to prompt adjustments, it's crucial for investors to stay focused on long-term goals,” Barton said. “Remaining invested over the long term allows members to benefit from compounding returns and ride out market fluctuations, ultimately helping secure a more stable retirement.”
Super funds remain the key source of advice
Despite lower confidence, Australians continue to lean heavily on their super funds for guidance. More than half (54%) of participants cite their fund as their primary retirement-planning resource, ahead of financial planners, online investment services, financial media, and informal advice networks such as friends, family and colleagues.
The findings point to the growing centrality of super funds in helping members navigate complex investment decisions — especially amid evolving contribution settings and rising demand for personalised advice.
ESG demand surges, led by younger members
One of the more striking trends in this year’s survey is rising appetite for ESG-themed investment options within super funds. Interest climbed to 81% of respondents, from 73% last year, with Gen Z driving the surge: 97% say they want ESG choices included in their super, up from 75% in 2024.
Millennials (78% to 90%) and Boomers (62% to 73%) also recorded sharp increases, while Gen X bucked the trend with a small decline from 71% to 68%.
Barton said the growing shift toward earlier engagement — particularly among younger Australians using digital tools — represents a bright spot.
“It’s encouraging to see conviction improve among members and retirees, yet our study shows that most Australians remain unsure about their journey, and that despite higher mandated and incentivised contributions, cost-of-living pressures continue to weigh heavily,” he said.
“Younger generations seeking advice earlier and adopting digital tools is a positive sign for improving retirement confidence and creating a smoother retirement journey, especially as high-quality advice models and digital innovations come together.”