Wealth transfer is accelerating in Australia. But governance is lagging.

Most Australian family fortunes do not survive the handover to the next generation. On the most widely cited research, from the Williams Group, 70 per cent of families lose their inherited wealth by the second generation and 90 per cent by the third. Only one in twenty pass on more than they received.

The failures are rarely technical. The same research attributes around 60 per cent to a breakdown of trust and communication within the family and a further 25 per cent to unprepared heirs, with tax and markets a small residual.

Lipman Burgon, a partner-led wealth governance firm, argues these are governance failures: who decides, how, and how the next generation is prepared. More advice does not close the gap. Better-governed decisions do. And the stakes are rising. The Productivity Commission estimates around $3.5 trillion in assets will change hands in Australia by 2050, with inherited assets, roughly $120 billion a year now, projected to quadruple to almost $500 billion a year within 25 years.

According to Paul Burgon, Chief Executive and Chief Investment Officer of Lipman Burgon, this is changing what families need from an adviser: from investment management alone to the governance of decisions across the whole of a family’s affairs, as families hold more across more structures, jurisdictions and generations at once. The firm describes its work in a single line: better decisions through governance.

“Most families with real complexity don’t lack advisers. They lack someone accountable for how the advice fits together,” Burgon says.

That accountability is the heart of the firm’s model. One partner holds the full context of a family’s affairs and convenes the specialists and advisers around them, so the parts operate as a whole. Critically, the model does not displace the accountant or the lawyer. It coordinates them, under a single plan, with one partner answerable for how the pieces fit.

“The biggest risk for many families isn’t market volatility,” Burgon says. “It is fragmented decision-making.”

The point is not to promise better returns, rather better decisions: the quality, coherence and accountability of the choices made across investments, structures and family over time. Lipman Burgon structures every client relationship through the same methodology, Architecture, Governance, Stewardship, whichever service the family enters through.

“The real test is continuity. Most of the families we have worked with for more than 10 years now have the next generation actively involved, well before any handover. That is what carries wealth across generations,” Burgon says.

The urgency is generational. Joanna Sun, Head of Family Office Design at Lipman Burgon, says the transfer now underway will test families that have not done the governance work.

“Wealth transfer is accelerating in Australia. But governance is lagging,” Sun says. “The families that have done the work will be the ones whose wealth survives the handover.”

Lipman Burgon works across three connected service lines: Wealth, Private Office and For Purpose. Wealth covers investment-led advice and stewardship of financial capital. Private Office provides comprehensive stewardship for families with complex affairs, coordinating the whole advisory ecosystem. For Purpose brings investment governance to foundations, charities and other mission-led organisations. One organising logic runs through all three, under the firm’s promise: Wealth and Legacy in Motion.

Behind the promise sits a broader view of what wealth is for. In the firm’s framework, financial capital is the engine, not the destination. It exists to serve four other forms: the human capital of family members, the family’s intellectual capital, its social capital, and its legacy capital, the enduring contribution and purpose carried across generations. Wealth governance, on this view, is the discipline that keeps all five moving in the direction a family intends.

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Matthew Esler

Padua Solutions (Padua) today announced a major expansion of the Padua Advice Portal (the Portal), with AUSIEX joining as exclusive broking partner.

Padua Solutions CEO & Managing Director, Matthew Esler said advice firms and licensees increasingly need technology that connects every stage of the advice process, from client engagement and advice generation, through to implementation and compliance.

“The Padua Portal is an advice ecosystem that provides the connective tissue for the next phase of advice delivery in Australia,” he said. “We want to enable advisers to deliver more good advice to more clients, by giving them the infrastructure to do it efficiently and at scale.”

The expanded Portal, which can be fully white-labelled, quickly connects institutional partners through a single advice workflow layer. It is designed to deliver:

• Advice generation efficiency – reducing manual work and duplication across client discovery, advice generation and implementatio
• Client and member engagement – supporting both advised and non-advised engagement journeys through digital tools and connected data
• Integration and implementation connectivity – enabling wealth platforms, broking platforms, super funds and insurance providers to connect into advice workflows
• Compliance evidence – improving file quality, auditability and oversight through structured workflows and retained advice evidence
• Open, connected infrastructure – to help advisers efficiently scale from servicing around 100+ clients today, to 300 or more

“These capabilities are increasingly important as superannuation funds, platforms, licensees and advice groups look for scalable ways to address ‘the last mile of advice’,” Mr Esler said.

The ‘last mile’ is a term borrowed from logistics. It reflects the idea that while a parcel can travel 1,000 kilometres across the country efficiently, the final few hundred metres to the customer’s front door is often the greatest challenge and the most expensive.

“In financial advice, the last mile is about bridging the gap between advice and implementation,” Mr Esler said. “The Portal helps complete the last mile by connecting members and clients with the broader advice process.”

A core feature of the expanded Portal is its ability to support Application Programming Interface (API) and Model Context Protocol (MCP) integration between advice firms, licensees and institutional partners.

“These integrations reduce manual handling, improve implementation accuracy and support straight-through processing across platform, investment, broking and insurance workflows,” Mr Esler said. “The objective is to reduce friction in the advice process without compromising quality, control or compliance oversight.”

The expanded portal includes:

• Pre-advice engagement and discovery
  • Client View: Modular client engagement portal supporting different client or entity structures
  • WealthX: Open banking capability with Consumer Data Right (CDR)-enabled data capture: income and expenses, property valuations and mortgages
  • Wealth Review: Interactive whole-of-wealth dashboard combining personal and financial information into a single digital view of a client’s financial position
• Advice generation and quality assurance
  • Advice Guidance: Advisers strategise directly with Padua’s onshore Advice Guides, supported by Advice Optimiser, leveraging nearly 900 advice strategies
  • WealthAI: Autonomous video generation for advice documents and member statements
• Implementation and compliance
  • SteveAI: Agentive orchestration layer providing file notes and guidance
  • Regulatory Advice File Audit (RAFA) for Licensees: Real-time ASIC and AFCA-aligned advice file audit, validating advice outputs pre and post implementation
  • RAFA for Super Funds & Platforms: AI-enabled assurance framework designed to support trustee oversight of advice-linked implementation, compliance evidence and governance

Mr Esler said the Portal is now in such demand from advisers that Padua expects $27 billion in active money recommendations through the advice ecosystem in FY2027, up from $17 billion in FY26.

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Scott Carmichael

Founders spend years building a business, and often years preparing it for sale. Escala says too few spend adequate time preparing for the transition and the period immediately after settlement, when concentrated business value is converted into liquid capital.

When managed well, founders can establish a pathway to resilient sustained wealth. Without enough groundwork, the impact can be long-term and compounding.

Founders are selling, but settlement is not the finish line

The complexity of the transition that follows a successful business sale cannot be underestimated. While settlement may feel like the end of the journey, it marks the beginning of a very different set of decisions and adjustments.

Scott Carmichael, Head of Advisory at Escala, said, “Settlement of a business sale or transition can affect every aspect of daily life, with the challenges being just as psychological and emotional as they are financial or operational. For this reason, the plan needs to consider the whole of life alongside investment planning.”

Founders who sell businesses have invariably been consumed by the day-to-day operations of the business and the sale process itself. In many instances, little forward planning has been undertaken.

“The advisor’s role is first and foremost to listen, understand where a founder’s ambitions lie, identify potential risks, and help create a clear vision for what comes next.”

Many founders move from running a business they know intimately to overseeing a significant pool of liquid capital across markets and opportunities that may feel far less familiar.

“That shift can be confronting,” Carmichael said. “Even simple measures, such as establishing a regular ‘salary’, can reduce uncertainty and support better decision-making.”

“Continuity is critical. While founders may have long-standing relationships with accountants, lawyers and other trusted advisors, the wealth advisor is the element that brings these functions together, ensuring they work collectively to formulate a cohesive strategy and a clear vision for the future. Keeping those relationships aligned is an equally important part of managing risk.”

The post-sale strategy is a critical wealth issue

Escala believes the initial post-sale period is one of the most critical, yet often overlooked, stages of the founder wealth journey. A successful exit creates an important opportunity to pause after what is often one of the most significant events of a founder’s life. It provides the time to evaluate personal priorities, family objectives and long-term ambitions before committing capital. It is equally important to recognise that developing a sound strategy for a life-changing event takes time. Over the years following a sale, objectives and vision often become clearer.

“Founders need to understand their liquidity needs, tax position, income requirements, family objectives, retained business interests and long-term investment horizon,” Carmichael said.

“That requires careful consideration. The first question should be what the capital needs to achieve, not where to invest.”

Simon Dawkins, Head of Capital Markets and Escala’s Direct Investment Group, believes without a plan, founders can move too quickly into risk assets, sit too long in cash, or move back towards concentrated direct opportunities because they feel familiar.

Escala’s Direct Investment Group, led by Dawkins, was established to meet Escala’s UHNW client demand for access to institutional-quality direct investment opportunities across all asset classes; and plays a very relevant role in this scenario.

“For example, we see an important role for a curated portfolio of direct investment-grade bonds to provide capital stability, liquidity within two to three days, and materially higher returns than cash. Being in such a liquid strategy to start with allows for quick redeployment into risk assets as prescribed by the client’s advice team,” said Dawkins. “Capital needs to be working from day one, and this strategy gives clients, together with their advice team, time to refine their target risk profile and allow staged investment into less liquid risk assets.”

Carmichael commented that it is not uncommon for the entirety of a founder’s sale proceeds to be directed to the Direct Investment Group on day one.

He added “it is an excellent example of how an integrated model, which combines wholesale advice, Chief Investment Office oversight, and institutional-quality investments can assist the shift from wealth creation to wealth stewardship.”

The role of wholesale advice

Carmichael concludes that a key part of the ongoing advisory relationship, much like the sale, is helping founders create continuity through that next phase. This may involve working alongside spouses, family members, accountants and other trusted advisors to ensure decisions remain aligned and the family’s objectives are clearly understood.

“These are deeply personal matters and, ultimately, the goal is to provide founders with confidence that their wealth is structured not only for today’s needs, but for the people and priorities that will matter long into the future.”

The post The biggest challenge to founder wealth begins after the business is sold appeared first on AdviserVoice.

The IMAP Awards are recognised as the leading Award program for what is now a $300bn segment of financial services, honouring best practice in advice and portfolio management.

The awards cover both single sector asset classes and multi asset class programs delivered as either MDA portfolios or platform based SMAs.

The IMAP Licensee Award and Boutique Licensee Award specifically recognise managed account programs developed by Advice practices and licensees that are integrated into their advice process.

IMAP also recognises the two additional areas of Responsible Investing and Innovation within Managed Accounts.

The IMAP Awards take into account quantitative analysis and qualitative judgement.

The Awards are adjudicated by a panel of independent researchers and other specialists. Australian Ethical are sponsors of the Responsible Investing Award, Centric are sponsors of the Boutique Licensee Award and S&P DJI sponsor the Multi Asset Award. IMAP and S&P DJI have worked together to develop a multi asset benchmark as part of this years Multi Asset Award.

SuitabilityHub are the IMAP Managed Account Awards Technology Partner.

The Finalists for 2026 are:

Licensee Managed Account

• Morgan Stanley
• Perpetual Private
• RSM

Boutique Licensee Managed Account

• Fin-X Wealth
• GDA
• Mont Wealth Advisors
• Oakleigh
• Strategic Wealth Lifestage

Responsible Investing Portfolio

• Implemented Portfolios
• Lonsec
• Russell Investment Management

Australian Equities

• Akambo Investment Management
• Antares
• Lonsec Investment Solutions
• Pendal
• Resonant Asset Management

International Equities

• Loftus Peak
• Morgan Stanley
• PPM Private Portfolio Managers

Multi Asset

• Betashares
• Drummond Capital
• Lonsec Investment Solutions
• MLCAMMorgan Stanley
• Russell Investment Management

Innovation

• Akambo
• Drummond Capital Partners
• Findex Group – Specialised Private Capital (SPC)
• MST Financial
• Philo Capital Advisers
• PortfolioCloud

Fixed Interest

• BondAdviser
• Cameron Harrison
• MST Financial

Retirement

• Betashares
• Lonsec
• Russell Investment Management

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Tony Vidler

To get prospects to buy your advice and change direction you have to “sell emotion” and support it with logic, right? Not quite….there is a piece missing in this formula which is is largely accepted as the methodology for selling intangibles I believe.

I believe that the missing ingredient is “beliefs”, and it is understanding the buyers beliefs to begin with which enables a great professional to figure out how to make the advice both palatable and actionable to a prospect.

Let’s use a simple example to illustrate what I mean.

Say you were a financial adviser focusing upon long term financial independence planning and you were dealing with a prospect who had 10 years to go until retirement.

During our initial discussion we have established that the prospect has a vision and desire of living a retirement lifestyle which is largely unchanged from their existing lifestyle – albeit without the “working for a living” part. They still want to go on an annual overseas holiday, drink wine and dine out, and play lots of golf or whatever around the country.

Quick number-crunching of the sort that we can all do in 2 minutes on a calculator shows the logical extent of the problem: they are currently on track to run out of money on the second Tuesday after they turn 65.  They have nothing of consequence saved for the future in other words, but have a vision that life will be wonderful and abundant.

Not an uncommon situation in reality, although perhaps I have exaggerated slightly.  There is however frequently an enormous gap between a prospect’s financial capacity and their voracity.  A big gap between what they have and do and what they expect they will be able to have and do in other words.  The barrier to change is their beliefs.

That is the area which we professionals often fail to investigate and understand, and as such it becomes the barrier to getting the prospects to buy our advice.

Gong back to the example for a moment, the barrier here will typically be a belief that “all is well” and there is no requirement for planning. Perhaps an illogical belief in a social welfare system that will support them for life…perhaps a more logical belief that an inheritance will take care of everything…perhaps an entirely irrational belief such as “we will win the lottery and not have to worry”.  But there is a belief issue of some sort.

Until the prospects beliefs are known no amount of logic and no amount of emotional “selling” will shift them to follow advice which is rational.  To them, your rationale is irrelevant.

Obviously the first step is to uncover whatever beliefs prospects hold, in addition to the necessary understanding of the facts & figures, as well as determining what their goals are.  The easiest question in the world to begin uncovering beliefs that may be barriers is a direct one, but without being confrontational:

“The first thing we need to take into account is who else is contributing to your retirement before we worry about what you have to put in, so what do you expect from government, relatives, business sales or anything like that?”

The temptation for many professionals once the prospect answers is to challenge any illogical or irrational beliefs.  That is a surefire way to lose a prospect straight away.  Challenging a belief with logic is tantamount to saying “you are stupid; just listen to me”.  Generally people don’t respond well to that….

What we have to do is create doubt.  We have to create a situation where they question their own belief themselves. We do that by asking

Rather than have the logical answer (or facts) and then try to convince prospects by tying that to emotional selling points (e.g. fear, greed, love), it is far more effective to appear to not have the answer early on in the process.

The more “what if’s” that are asked, the more doubt which is created.  The more doubt that is created about a prospects existing belief-set then the greater their likelihood of anchoring their future beliefs on the facts and logic which you subsequently present.

Jumping straight to facts or logic to begin with, as so many professionals tend to do, doesn’t shake the incumbent belief-set.  That is one of the reasons why so many prospects do not convert, or are just sheer hard work to convince of the right way forward.  You have to lead them to change their own mind themselves…you will not change their belief set by challenging it with pure logic.

Get some “what if’s” into your advice process before presenting logic or recommendations and you will get more prospects to buy your advice.

The post Getting more prospects to buy your advice appeared first on AdviserVoice.

Suzie Willis

Equity Trustees, a sponsor of the upcoming 2026 Stand Up, Speak Out Australian Elder Abuse Conference, is calling for greater awareness of the need to act early to protect older Australians from financial abuse, which has become alarmingly widespread as Australia’s population ages.

National data shows around 1 in 6 older Australians experience some form of elder abuse each year^[1]. Financial abuse, where an older person has their funds improperly or illegally accessed, has become one of the most common types of elder abuse as more people rely on others to manage their affairs later in life.

“Sadly, elder abuse is often perpetrated by someone the victim knows, with around half of the cases involving family members,” said Suzie Willis, Senior Estates and Trust Solicitor at Equity Trustees, one of Australia’s oldest trustee companies.

“Financial abuse can start gradually and often goes unnoticed until significant damage has already been done. Once confidence is lost, it can be very difficult for someone to regain independence.”

Ms Willis is hosting a workshop at the Stand Up, Speak Out conference which runs from 27-29 July at the Gold Coast on practical early‑intervention and prevention strategies for safer decision‑making for older people. She says there are many risk factors, but all Australians can act early to put safeguards in place.

“Simple steps, such as appointing an enduring power of attorney and carefully selecting who will make decisions on your behalf can significantly reduce exposure to abuse,” Ms Willis said.

“It’s about more than having someone you trust. The strongest protection is when you have the right structures and oversight in place well before they are needed, including clear legal and financial arrangements.”

A professional trustee can help protect a lifetime of savings and ensure they support the beneficiary’s long-term wellbeing, independence and quality of life.

Trustees play a central role in determining how, when and why funds are released, safeguarding capital, but also funding essentials such as medical care, daily living support, housing, and social participation.

Watch for warning signs

Another key to preventing elder abuse is being able to identify the warning signs.

Social isolation is a risk factor, with people who are less connected to family, friends or their community being more vulnerable to exploitation.

Unexplained transactions, sudden changes in behaviour, new influences over decision-making, or withdrawal from regular activities should also be red flags.

Older Australian who are unhappy with the care they are receiving, or family and friends who have concerns should speak up if they feel something is wrong. These situations can raise complex social and legal issues but calling them out is essential and shows loved ones that help is at hand.

Support is available from community groups, lawyers, the police, and via the National Elder Abuse Helpline on 1800 353 374.

“Ultimately, protecting independence later in life comes down to planning early, staying connected and staying alert to the warning signs. We all have responsibility to care and advocate for older people, especially if they are unable or unwilling to speak for themselves,” Ms Willis said.

———-

Notes:
[1] Australian Institute of Health and Welfare, Family, domestic and sexual violence, 24 February 2026. Older people – Australian Institute of Health and Welfare

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Kimberly Sutherland

LexisNexis^® Risk Solutions warns that the latest wave of AI-generated deepfake documents, images and liveness videos could leave organizations significantly exposed if their identity and customer onboarding checks fail to keep pace.

The global fraud prevention specialist says it has seen a 180% year-on-year increase in attacks and warns that the quality and sophistication of deepfake documents and images improves daily. With Juniper Research predicting 100 billion identity-related checks will be carried out this year and one in every 100 failed checks will contain a deepfake, experts at LexisNexis Risk Solutions warn businesses everywhere to expect rising volumes of daily attacks targeting their digital services.

“Deepfakes vastly complicate digital identity verification. Protecting against this surge of attacks requires a solid line of defense incorporating end-to-end capture, fraud analysis and liveness checks.” says Kimberly Sutherland, global head of fraud and identity at LexisNexis Risk Solutions. “Even the smallest gap in your defenses is like an open window that a fraudster can climb through.”

Bad actors use deepfakes to bypass identity checks and create new accounts or take control of existing user accounts to make unauthorized payments, withdrawals and online purchases, launder the proceeds of crime, or abuse new customer bonus incentives. One in every 11 new account creations in 2025 was a fraud attack and almost a fifth of all reported fraud involved unauthorized access of customer accounts, according to the company’s latest Cybercrime Report.

As deepfakes become more realistic, identity checks need to be capable of spotting nuanced flaws in document security features and closely examine facial expression and skin tone.

Sutherland continued, “Highly realistic deepfakes call for forensic examination of hundreds of security features: document structure, image integrity, holograms, etching and microtext. Deepfakes typically fail on several minor flaws, as opposed to physical forgeries that fail on one major issue, but they are not easy to spot with the human eye during manual checks. The same goes for deepfake images and videos. Checks need to assess micro movements in facial muscles, analyse light reflection and detect image manipulation and injection tactics.”

Analysis shows that fraudsters favor high-value, reusable identity documents, including passports, driver’s licenses and national ID cards, with the most highly sought after documents issued by the United States, United Kingdom, Germany and France.

Shane O’Sullivan, research analyst at Juniper Research, added, “As digital identity verification evolves, the core requirements shift toward the technical ability to integrate multiple trust signals into a coherent system architecture. Effective solutions depend on the coordination of document authentication, biometric liveness detection and real-time risk analysis within a single workflow. Increasingly, fraud detection system success is defined by how well it can detect advanced threats such as synthetic identities and deepfakes while maintaining interoperability across standards and minimising latency and user friction.”

Sutherland concluded, “The risk to businesses is real from both a financial and reputational standpoint. The reality is that AI-generated attacks are practically doubling year over year and getting more sophisticated with every attack.”

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Lifetime income, protection, stability and preserving a client’s standard of living can help retirees better understand when an annuity is appropriate.

Avantis Investors provides four takeaways advisors can apply in client conversations when discussing annuities with clients.

1. Start with income, not account balances

Advisers should begin with the end in mind. The question is not whether retirement is about having a lump sum of money at 65, but whether clients can maintain their standard of living for as long as they live. If the conversation starts with the portfolio, clients are immediately in an investment frame of mind, thinking about risks, returns, trade-offs and account balances. Starting with income instead shifts the focus to the amount retirees need each month to fund their lifestyle.

2. Position annuities as a tool in the toolkit

Annuities are not a one-size-fits-all solution. Advisers still need to assess a client’s willingness and ability to take risk, time horizon, income needs and later-life goals. For some clients, model portfolios, estate planning and tax strategies will be the priority. For others, an annuity can help bridge the gap between Social Security or pension income and the amount needed to maintain their standard of living. The key is ensuring the solution fits the client’s circumstances.

3. Explain the trade-off between upside and protection

Clients naturally want the full upside of investing without the downside risk. Some annuity products can provide participation in market gains while also offering a level of protection against losses. Advisers should clearly explain that while clients may not receive all of the market’s upside, the trade-off is reduced downside risk. Framing annuities as an insurance solution can make this easier to understand. Just as people do not regret paying for home insurance when their house does not burn down, annuities should be viewed as protection rather than judged solely on whether markets performed strongly.

4. Help clients picture their future self

When clients are 60 or 65, they are planning for a version of themselves at 85, 90 or even 95—a future that can be difficult to imagine. A retirement plan that delivers a regular monthly income can be much easier to manage in later life. This is one of the often-overlooked benefits of lifetime income: it provides financial security for the client’s future self and helps reduce concerns about maintaining their standard of living.

Annuities are best understood as filling the gap between guaranteed income and essential living expenses. Advisers who frame annuities around lifetime income, protection, stability and preserving a client’s standard of living can help retirees better understand when an annuity is appropriate—and when it is not.

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Renee Howie

A new generation of financial ‘super planners’ arrives as cost-of-living pressures widen national retirement confidence gap

• Having enough to retire comfortably is Australians’ equal top life goal alongside financial independence (54%) and ranks equal third for Gen Z alongside homeownership (45%).
• Gen Z Australians have edged out Gen Y as the most financially confident generation (45% vs 42%) and are most likely to believe they can meet future retirement needs (37%).
• Despite relatively higher financial confidence, less than half of Gen Zs believe they are on track to retire comfortably (44%) only slightly higher than the national figure of 41%.
• Across all Australians, only 31% believe they will be able to retire when they want to, with cost-of-living the biggest barrier to peoples’ financial aspirations (64%).
• A group of around 1 in 3 Gen Z ‘super planners’ are running post-retirement calculations in their 20s, as they seek to take more long-term control.

According to MLC’s new Real Retirement Report, Gen Z have overtaken Gen Y as the most financially confident generation, as economic and income pressures prompt many younger Australians to take more control of their financial futures. Now, 45% of Gen Zs are extremely or very confident in their financial knowledge, up from 30% in 2024, while 42% of Gen Ys are confident compared to 35% two years earlier.

The research of more than 2,500 Australians, conducted by McCrindle on behalf of MLC, found that Gen Z are more likely than any other generation to believe they can meet their financial needs in retirement (37%) and expect to retire earliest, at 63.

Retirement is also seen as an important life goal for Gen Zs who now rank having enough to retire comfortably (45%) equal third with home ownership, behind work life balance (52%) and financial independence (46%). This aligns with the national focus on having enough in retirement, now Australians’ equal top goal (54%) alongside financial independence.

However, even among the nation’s most confident generation, only a minority of Gen Zs (44%) say they are on track to achieve a comfortable retirement. This reflects national aggregate figures, where even fewer believe they are on track (41%) and just 31% expect to be able to retire when they want to.

At a national level, these figures fall further among women, with only 25% expecting to be able to retire when they want, compared to 37% for men. Similarly, 50% of men believe they

are on track to retire comfortably compared to 32% of women. The research shows that across the population, cost-of-living pressures are by far the most commonly cited barrier to achieving financial goals (64%), followed by current income (37%) and debt (20%). Gen Z also report the highest levels of frustration about their financial situation (37%), just ahead of Gen Y (36%), and followed by Gen X (32%) and Baby Boomers (19%).

Renee Howie, MLC’s Chief Customer Officer, said the MLC Real Retirement Report highlighted the challenge many Australians face in balancing today’s financial commitments with tomorrow’s goals.

“Having enough money to retire comfortably is now one of Australians’ most important life goals, yet most people don’t feel on track to achieve it. With cost-of-living pressures, interest rate rises and even uncertainty around what recent Federal Budget changes may mean for them, it’s understandable many Australians feel less in control of when and how they retire.

“What’s encouraging is that younger Australians appear to be responding with action, and engaging earlier with their finances. They’re talking openly and honestly about money, setting goals, superannuation and thinking about retirement well before previous generations did.”

A new generation of ‘super planners’ emerges

As Gen Z responds to ongoing financial pressures, the research reveals a group of younger Australians stepping up their retirement planning far earlier than others.

This group of ‘super planners’ includes the roughly one in three Gen Zs who have begun retirement planning understand how long their savings must last (32%), know what their major expenses will be (38%) and even how much super they will draw down each year once in retirement (30%).

“Many younger Australians are running post-retirement calculations far earlier in life so they have a clear goal they can work towards. This is a digitally savvy generation who knows how to find information, but it’s more than just budgeting and planning, they’re taking meaningful actions with this information too.”

Gen Zs are the most likely of any generation to switch super funds (9%), salary sacrifice (10%) and seek advice (14%).

Ms Howie said that no matter where you are in your journey to retirement, taking small steps can make a big difference to outcomes and help close the confidence gap. This includes:

1. A 5-minute super check – a quick check to see if you have multiple super accounts you don’t know about, how much you’re paying in fees and costs, and if you’re in the right investment option can save you tens of thousands of dollars over a lifetime. For example, simply switching from a default investment option to a high growth one between 18-49 years of age could add up to $120,000 to your super at retirement*.
2. Understand available incentives – programs like the government co-contribution scheme or low-income support tax offset can help lower-to-middle income earners boost their super.
3. Take advantage of compound interest – even if you don’t have much to spare, contributing $5 or $10 a week or month in your 20s and 30s could have a big impact on your super balance at retirement. For example, salary sacrificing an extra $5 per week to your super from 20 years of age could add more than $26,000 to your super at retirement**.

“At MLC, we believe that a national dialogue around retirement readiness and confidence is sorely needed so people aren’t going it alone. But for individuals, if you’re unsure how you’re tracking, are worried about retirement or need support, speak to a financial adviser. If you don’t have one, call your super fund as most will be able to put you in touch with someone that can help,” Ms Howie added.

*Scenario is based on an 18 year-old with a starting superannuation balance of $1,000 and a salary of $60,000 p.a. with a 3% p.a. salary increase. Assuming default option return of 6% p.a. and high growth return of 6.5% p.a. from age 18 to 49. From age 50 to retirement age of 67 investment returns reduce over time from 6% p.a. to 5.5% p.a. and from 6.5% p.a. to 5.88% p.a., respectively.

**Scenario is modelled on an extra $5 per week and a 2.5% p.a. salary sacrifice increase from age 20, to age 67. Assuming an investment return of 6% from age 20 – 55 and then reducing over time to 5.5% p.a. at retirement age of 67.

Methodology

The Real Retirement Report 2026 explores the attitudes to retirement and financial confidence, based on a survey of 2,500 Australians aged 18 years and over. The survey was conducted by McCrindle on behalf of MLC, with questions in-field in December 2025.

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Darren Connolly

The belief that younger Australians have already missed their chance to build wealth is becoming one of the country’s most damaging financial myths, according to InvestmentMarkets CEO Darren Connolly.

The narrative that property prices, cost of living pressures and the more recent CGT tax changes mean younger Australians are permanently locked out of wealth creation, is a dangerous one Connolly says.  

“The biggest mistake young Australians can make is believing it’s too late or too hard to start building wealth,” Connolly said.

“They have been told that unless they own multiple investment properties, they’re already behind.”

“And that with the recent changes to CGT, they will now never get ahead, both things are not true.”

His comments come as younger Australians show increased interest in investing despite economic pressures. Research from Vanguard Australia^[1] released this year found almost half of Gen Z and Millennial Australians want to begin investing, and InvestmentMarkets has also seen huge growth in younger investors researching their options across more than 200 providers and 20 different asset classes on its marketplace platform, with ETFs being of particular interest for this cohort.

“For years we’ve celebrated the property millionaire who has an investment portfolio of twenty houses. That’s an extraordinary story, but with the average Australian home now worth more than 1.1 million dollars expecting young people to replicate these types of strategies ignores reality.”

According to Connolly, these outliers and the obsession with trying to catch up quickly often leads inexperienced investors into the biggest traps.

“Social media is a go-to for many younger investors, and while it can provide foundational information, it has also created a generation that feels like everyone else is getting rich overnight.”

“The FOMO mindset can push people towards speculative investments, concentrated bets and chasing trends. Investing should never feel like you’re buying a lottery ticket.”

Rather than trying to find the next investment sensation, Connolly argues most young investors would achieve stronger long-term outcomes by focusing on the basics.

“Start small. Save consistently. Invest regularly. Diversify properly. Keep your costs low. Then give your portfolio time to do what markets have historically done over long periods. It sounds boring, but boring is often incredibly successful.”

The greatest financial advantage younger Australians possess is something money cannot buy.

“Younger Australians have the benefit of time. Compounding is still the closest thing investing has to magic. The earlier you begin, even with relatively small amounts, the harder your money works over the decades that follow.”

“If you’re in your twenties and thinking about getting started, you haven’t missed the opportunity. In many ways, you’re standing at the best possible starting line.”

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Notes:
[1] https://www.vanguard.com.au/personal/learn/smart-investing/etfs/why-more-young-australians-are-turning-to-etfs

The post Young Australians don’t have an investing problem – it’s listening to the noise that says it’s too late or too hard to even start appeared first on AdviserVoice.