Intergenerational Report 2026 reinforces the need for quality financial advice as longer lives and greater complexity shape the future
David Lane
The Australian Government’s 2026 Intergenerational Report highlights a future where Australians are living longer, retirement is lasting longer, and financial decisions are becoming increasingly complex. With life expectancy projected to reach 89.5 years for women and 86.1 years for men by 2065–66, and the number of Australians aged 85 and over expected to triple, the importance of proactive financial planning has never been greater.
These trends create both opportunities and challenges. Longer lives mean longer retirement periods, increased healthcare and aged care considerations, and more complex intergenerational wealth transfer decisions. The financial decisions made today may need to support outcomes decades into the future.
Qualified financial advisers play a critical role in helping Australians navigate this complexity through integrated advice covering superannuation, investments, tax, retirement income, risk management, estate planning and succession strategies. As longevity increases, the value of holistic financial advice becomes more important than ever.
The 2026 Intergenerational Report confirms that Australia’s superannuation system has been successful in assisting Australians in accumulation and preparing a greater proportion of the country for retirement. Concerningly though, it highlights the growing divide between the wealth and opportunities of our older and younger generations.
Due in part to the strength of superannuation, and the growth in wealth, the report predicts that the proportion of older Australians receiving an Age Pension or income support payment will fall from 66% currently to 52% by 2066. This will lead to a projected decline in Government spending on the Age and Service Pensions from 2.3% of GDP to 1.8% of GDP by 2066.
As the superannuation system matures, Australians are accumulating greater retirement savings, with median balances for those nearing retirement projected to more than double over the coming decades. This shift means that superannuation will increasingly become the primary source of retirement income, reducing reliance on the Age Pension and placing more responsibility on individuals to manage their financial wellbeing.
Comprehensive financial advice can help retirees balance income needs, lifestyle goals, and the costs of care, ensuring a comfortable and sustainable retirement.
Wealth accumulation is shaped by factors such as home ownership, investment strategies, and superannuation contributions. However, younger generations face new challenges, including slower wealth growth and barriers to entering the property market. As a result, tailored financial advice is essential to help individuals make informed decisions, optimise their savings, and build a secure financial foundation. Many families have become more active in planning for wealth transfer during life, rather than leaving large estates, and this trend is likely to continue to be more prominent.
Looking ahead, Australia is set to experience the largest intergenerational wealth transfer in its history, as older Australians pass on assets, particularly housing and superannuation, to younger family members. Estate planning and intergenerational wealth transfer strategies are becoming increasingly important to ensure assets are distributed according to wishes, tax implications are managed, and family members are supported.
As the Intergenerational Report demonstrates, the financial decisions Australians make today may have consequences spanning decades. Seeking advice early can help individuals maximise opportunities during their working years, while regular reviews ensure strategies remain relevant as personal circumstances, legislation and economic conditions evolve.
Qualified financial advice plays a critical role in helping individuals and families make informed decisions with confidence. Holistic financial advice extends well beyond investment selection. It integrates retirement planning, superannuation, tax optimisation, risk management, estate planning, cash flow management and family wealth strategies into a cohesive plan aligned with a client’s goals and values.
By David Lane, Head of Wealth Advisory
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