Client fears continue despite high-ranking retirement outcomes

Data released through the 2025 Natixis Global Retirement Index has highlighted that many Australians are fearful about their retirement. Increased global instability and continued economic hardship in the wake of COVID-19 have shaken the sense of security many have in their retirement.

“The angst is hard felt as investors’ biggest fears about retirement security are playing out in real time,” the report said.

“Topping the list is the concern that they won’t have enough money saved to enjoy their retirement (40 per cent globally).”

Other major concerns expressed was inflation decreasing the value of their retirement (38 per cent), legislative reform reducing benefits (33 per cent), and that they simply will not save enough to retire (25 per cent).

“Recent bouts of inflation show there is no way to accurately project what future expenses will be,” the report stated, highlighting a core fear driver surrounding concerns retirees will not be able to enjoy their later years.

Focusing on Australia, the cost of living is cited as a strong driver for these fears, with 80 per cent of those surveyed domestically stating they are not saving as much due to rising cost of medicine, services and everyday goods.

“Any interruption to savings can be detrimental to achieving retirement security,” the report said.

“And Australians are aware its impact can have on their individual plans, as more than one-third of investors in the country worry that they’ll never save enough money to retire.”

The report also highlighted that data released by the Australian Bureau of Statistics (ABS) shows that retirees are experiencing a 3.5 per cent increase to yearly costs, with health housing and food as the biggest stressors.

Around two-thirds (66 per cent) of Australians also cited that inflation was also impacting their savings, with this combination of rising costs fuelling uncertainty among clients domestically.

However, contained within this report is data that highlights Australia as still one of the best places in the world to retire, a fact many advisers should be looking to reassure their clients about.

Australia ranks fifth in the world in terms of the report’s “finances in retirement” sub-index. Despite this being a fall, Australians still enjoy higher retirement savings than the vast majority of the world, thanks to the country’s robust superannuation system.

Overall, Natixis ranked Australia as seventh in its Global Retirement Index (GRI), ranking over much larger economies such as the US, UK and South Korea.

“Australia retains seventh in this year’s GRI, despite a modest score dip from 78 per cent to 77 per cent. The country’s impressive run of top ten finishes now extends over a decade,” the report said.