Felipe Araujo
Retirement confidence among high-net-worth (HNW) Australians has fallen sharply since 2022, according to new research commissioned by Generation Life, as evolving superannuation and tax settings emerge as a major source of uncertainty in long-term financial planning.
The 2025/26 Navigating Uncertainty Report polled the sentiments of more than 650 HNW Australians and 354 financial advisers between October and November 2025[1]. It reveals broad consensus that Australia’s superannuation system remains strong at its core.
Yet respondents report mounting pressure in the current financial landscape, as frequent legislative adjustments and heightened taxation debate continue against a backdrop of ongoing policy change. Most recently, the passage of Division 296 through Parliament for Royal Assent – set to begin from 1 July 2026 – is a stark reminder that for many Australians, long-term retirement planning must now contend with ever-shorter policy cycles, weighing on confidence even among financially resilient households.
Declining confidence among HNW Australians
A majority of respondents say they feel less confident today than they did in 2022. In comparison to three years ago:
- 71% are now less confident about their financial security
- 69% now feel less confident about retiring comfortably
- 63% are now taking less investment risk with their portfolios
This shift is unfolding amid heightened geopolitical tension, market volatility and rising household budget pressures – factors that continue to influence how Australians plan, adapt and make financial choices.
Yet despite softening sentiment, retirement remains the top financial goal, ahead of wealth transfer, wealth accumulation and lifestyle priorities.
“A secure, comfortable retirement is the ambition of every Australian – it’s their highest financial priority,” said Felipe Araujo, CEO of Generation Life.
“But the journey feels less certain. Trust in Australia’s world-class superannuation system endures, yet confidence in the rules that surround it has weakened – shaped by years of shifting legislative change and taxation debate, of which Division 296 is only the most recent chapter.”
A world-class savings system clouded by uncertainty
While 84% of HNWs agree that Australia has one of the best retirement systems globally, concerns about stability are intense:
- 66% say the rules change too often and are hard to follow
- 61% are not confident the system will build and protect long-term savings
- 63% believe the system is flawed in the way long-term savings are taxed.
This uncertainty is most pronounced among those approaching retirement, with respondents aged 60 and over reporting the lowest levels of confidence. At this stage of life, changes to superannuation rules naturally carry greater potential consequences – affecting how individuals think about their contribution strategy, the timing of retirement and the tax settings that will apply to their savings. But this concern is no longer confined to pre-retirees. Mid-life HNW Australians (30-49) now report the highest levels of systemic pressure and are already adjusting their behaviours in response to continued policy settings, signalling that vigilance is also spreading across generations.
Policy churn now a major pressure point
Australians are now placing far greater weight on how superannuation rule changes influence their near-term decisions – a notable shift from 2024, when inflation dominated household concerns. This is reflected in clear movement across the HNW population, with contribution patterns and advice interactions increasingly shaped by the broader policy environment.
- About one-third of those who reduced super contributions in the past year did so in response to proposed government tax policy changes
- Almost 40% reduced contributions following adviser guidance, indicating greater engagement with advice as rules evolve
Super-tax conversations surpassing retirement and inheritance in advice
This behavioural shift is also reshaping advice demand. Understanding superannuation and tax legislation is now the third-highest driver of advice engagement, ahead of both retirement and legacy planning – even as Australia enters the largest intergenerational wealth transfer in the nation’s history, estimated at $5.4 trillion[2].
“What we’re seeing is a meaningful shift in the questions Australians want answered,” explained Mr Araujo.
“Super-tax settings have now become a huge focus, alongside retirement and the great wealth transfer on the advice agenda, not because people are changing their goals, but because they want clear direction – certainty – on the rules that frame their post-accumulation plans.”
The CoreData study explored this pattern of uncertainty with advisers, and their responses closely echoed the client trends. About 70 per cent had spoken to most or all of their clients about the Government’s Division 296 policy since its announcement in 2023, with conversations commonly centring on a lack of clarity and concerns about supertax policy rules continually changing. However, this increased attention has not translated into broad awareness across the wider HNW population, especially non-advised people.
Division 296: high attention, uneven awareness
Despite extensive public debate and media focus at the time of fieldwork in 2025, 44% of HNW Australians said they were not familiar with the Division 296 super tax. Among those who were familiar:
- 65% said they supported the proposal
- 65% said the proposal increased their confidence in the system; just 9% said it reduced their confidence
Advice provides clarity in a shifting policy landscape
This uneven awareness aligns with a broader theme across the study: as policy settings continue to evolve, Australians in ongoing advice relationships show consistently higher familiarity – revealing a clear divergence in how emerging rules are interpreted and understood.
- Awareness of Division 296 sits at 62% among those receiving ongoing advice, compared with 38% among those without an adviser
- Almost a third say advisers help simplify complex decisions, reduce cognitive load and provide reassurance amid uncertainty
Australians receiving professional advice also report significantly stronger financial satisfaction:
- 86% of those with ongoing advice are happy with their financial situation (vs. 55% without)
This sentiment is mirrored in how advisers assess future risk. While 72% of advisers believe future legislative changes will negatively affect HNW investors in general, only 21% believe it will negatively impact their own clients – pointing to confidence in their abilities to adapt structures and strategies over time.
A clearer path forward for retirement confidence
Generation Life’s research shows that while confidence in the superannuation system remains strong, successive rule changes are reshaping how Australians approach their retirement strategies. In this environment, enduring planning structures that offer clarity and stability across investment and retirement decisions become even more important – and Australians are increasingly turning to advisers for clear guidance through evolving policy settings.
Commenting on the broader implications of the findings, Mr Araujo emphasised, “Australians are seeking clearer and more stable policy settings so they can plan with confidence. Rule certainty is fundamental to long-term retirement planning, and with Division 296 now passed through Parliament for Royal Assent, advisers play a critical role in helping to translate such policy shifts into the right structures and decisions for their clients.
“With clear guidance, communication and well-designed long-term investment frameworks, Australians can move forward with much greater assurance.”
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