According to the Fidelity data, gathered in partnership with the National Innovation Centre for Ageing, one-third of Australian pre-retiree and retirees aged 50 and over are financially unprepared for retirement and are facing a retirement savings shortfall of at least a decade, expecting average retirement savings of around $540,000.
Revealed in Fidelity’s The longevity revolution: Preparing for a new reality report, 29 per cent of Australians 50 and over are unprepared for retirement, many needing an additional 10-plus years of superannuation.
Fidelity cited increased life expectancies as one challenge that will be exacerbated by this retirement gap, with 3.67 million Australians expected to live to over 100 in the next 30 years.
This is most notable among Australian pre-retirees with 51 per cent of pre-retirees noting they may need to work for longer when considering the possibility of living a longer life, with 36 per cent feeling most uncertain whether they will have enough money to last throughout retirement, according to the data.
Rising healthcare costs, unexpected major expenses, changes to government policies around pensions and taxation, and insufficient savings were identified as the top financial worries among Australians during retirement.
Speaking to advisers, Fidelity suggested five steps to help ease retirement anxiety, as well as address the savings gap:
1. Address financial anxiety early. Early financial guidance and education help reduce uncertainty and stress, enabling individuals to make informed choices and build long-term confidence.
2. Champion innovation in technology. Embracing digital platforms, AI-powered tools and personalised guidance – supported by appropriate guardrails – can close gaps in financial literacy and empower more effective financial planning.
3. Prioritise health and care. Proactive planning for health and care needs reduces uncertainty, supports independence and enhances quality of life, ensuring wellbeing is maintained as individuals age.
4. Build trust in public systems and institutions. Transparent communication, reliable financial products, and consistent policy frameworks are critical for strengthening public confidence in retirement and social support systems.
5. Support holistic wellbeing. Coordinated interventions across all four pillars – financial, physical, emotional and social – ensure no aspect of wellbeing is overlooked, helping individuals enjoy longer, healthier and more connected lives.
“A longer life should be something to look forward to, not fear. We have an opportunity to create the conditions for people to not only live longer, but to also feel more financially secure and have a fulfilling retirement,” Simon Glazier, managing director of Australia at Fidelity International, said.
He added: “Organisations and policymakers who embrace longevity wisely will not only support individuals in achieving security and purpose, but also establish a society that is wealthier, healthier and more cohesive than the one before it.”
