Australians who begin planning early have reported far higher confidence, preparedness and retirement comfort compared with late planners.Australians who planned, saved and acted early were nearly twice as comfortable in retirement, according to the Brighter Super and Investment Trends 2025 Retirement Income Report.
The national survey showed that prepared pre-retirees who planned earlier overwhelmingly saved more, used more advice and took more action, resulting in far stronger financial readiness than those who felt unprepared.
|The research found that 75 per cent of retirees who started preparing before age 40 reported living comfortably, compared with 44 per cent of those who began after 60 and just 16 per cent who did not plan at all.
“Australians who plan ahead generally feel more in control, have greater financial resilience and experience a smoother transition into retirement,” said Kate Farrar, CEO of Brighter Super.
The survey indicated that preparedness took time, with pre-retirees who felt prepared typically beginning planning 6.6 years ago and holding an average super balance of $438,000.
Those who felt unprepared began planning only 3.8 years ago and held an average balance of $177,000.
The Brighter Super Ready for Retirement Index rose to 58 points in 2025, up from 53 in 2024, with Brighter Super members lifting to 60 points.
Confidence remained subdued, with only 38 per cent of Australians feeling prepared, up from 29 per cent in 2024 but still below the 2021 peak of 60 per cent.
In 2025, pre-retirees estimated they would need a median of $4,300 a month, compared with the $3,300 they expected to receive, a 23 per cent income gap.
This marked an improvement from 2024 when the expected income gap was 31 per cent.
Additionally, the survey found that general knowledge and understanding about retirement products remained low, but those who used them reported high satisfaction.
Fewer than 30 per cent of retirees clearly understood retirement income options, yet 76 per cent of those using such products reported strong satisfaction.
Demand for advice from super funds remained strong, with personalised financial advice topping member priorities.
Despite improving results, retirement confidence remained below historical highs, with only 38 per cent of Australians feeling prepared for retirement.
To help close this gap, Brighter Super said it was simplifying retirement options and expanding its advice services.
The fund introduced a new advice fee structure expected to reduce the average cost of retirement advice by nearly 50 per cent, with fees payable directly from members’ super accounts.
“Retirement is shaped by the decisions you make today, not those put off for years. While the best time to start planning was years ago, the next best time is today. We want to empower our members to act early, seek advice, and build the confidence they need to retire well,” said Jennifer McSpadden, head of retirement at Brighter Super.
“The findings are clear – starting early builds confidence and creates a stronger foundation for retirement. For the industry, the challenge is to make retirement solutions simpler and more accessible, so more Australians feel empowered to take the steps that can improve their long-term wellbeing,” said Julian Cappe, head of research at Investment Trends.
