Based in Sydney, Rosie brings more than 20 years of experience in global equities across portfolio management, fundamental research and valuation. In her new role, Rosie will manage the Fidelity Global Equities Fund and Fidelity Hedged Global Equities Fund, a key offering within Fidelity’s Australian domiciled fund range.

Rosie’s appointment reflects Fidelity’s continued commitment to active global equity investing and to ensuring Australian clients have access to Portfolio Managers with deep global expertise.

Rosie joins Fidelity from Australian Foundation Investment Company, where she established and led the firm’s Global Equities strategy. In this role, she designed the investment process and built a diversified, long-term, low-turnover portfolio focused on high-quality businesses.

Prior to this, Rosie was a portfolio manager and head of franchises at Magellan Asset Management, where she was responsible for investment and portfolio recommendations and held sector leadership responsibilities within a concentrated global equities strategy. She also served on the firm’s Investment and Macro Committees.

Rosie began her career at Goldman Sachs, working in Sydney and New York for 15 years, where she gained extensive experience across valuation, strategy, capital markets and company analysis.

Simon Glazier, managing director, Australia, at Fidelity International, commented:

“Rosie is a highly experienced global equities investor with a strong track record of building disciplined, high-quality portfolios. Her deep expertise, combined with her experience in establishing and leading global equities strategies, makes her an excellent addition to our team.

“Rosie’s appointment reflects our continued commitment to strengthening our investment capabilities in Australia and delivering high-quality outcomes for our clients. We are particularly excited about her leadership of the Fidelity Global Equities Fund and the opportunity to further grow and evolve our offering in the local market.”

Rosie’s appointment underscores Fidelity International’s focus on investing in local talent and expanding its global investment expertise to better serve clients in Australia.

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Maroun Younes

With market uncertainty increasing, investors should look to quality companies that have the ability to generate consistent profits and consistent returns regardless of the macro-economic environment, says Fidelity International portfolio manager, Maroun Younes.

“Historical data shows quality does well in uncertain environments, but where there is positive slower growth, such as the one we are currently experiencing. The macro-economic picture is becoming murkier, and the euphoria of high growth and positive sentiment is subsiding. This tends to coincide with periods where quality starts to rise to the top.”

Younes concedes there is debate about how to define ‘quality’. “Some academics focus on profitability metrics, margins, returns, and volatility of the earnings profile. Others use metrics like shareholder payout ratios and balance sheets to define quality.”

Younes says it is important to look at quality in the context of the valuation multiples as well as the business’ sustainability. “Resilience and durability are key. Investors should look for companies that can withstand the curve balls that the global marketplace throws from recessions, pandemics, wars, rising interest rate environments and increasing competition. Having a strong and solid footing means a business can withstand the impact from different forces effectively. This is the mark of a quality business,” says Younes.

The Fidelity Global Future Leaders Strategy has conviction positions that are expected to benefit from the inflexion in the market led by AI capex investments. “We have a high level of conviction in the sustainability of the AI capex build up for the next two years and hold a number of companies exposed to the trend in our portfolio. For example, we have maintained conviction in Halma (LON: HLMA) for some time now, and we have seen that rising hyperscaler data-centre investment has benefitted its photonics and technology solutions division. Our position in electrical services provider Comfort Systems USA (NYSE: FIX) rallied after reporting solid fourth-quarter results and highlighting a robust order backlog supported by sustained data centre demand,” he says.

Younes adds, “Recent geopolitical tensions have introduced a renewed layer of uncertainty in the market, but investors should not lose sight of their long-term goals. Quality can contribute to very strong performance in the long term. The message to investors is to stay the course, because over the long term, quality outperforms.”

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In its report, Lonsec noted that “The Fund benefits considerably from Fidelity’s vast global research capabilities” and “experienced portfolio management team that shares significant co-tenure in operating this and other systematic strategies”.

The Fidelity Research Global Equities Fund focuses on equity securities of companies in developed and emerging market countries throughout the world. The strategy provides an opportunity for investors to leverage Fidelity’s research analysts’ best stock recommendations, in a systematically constructed portfolio to mitigate factor or style biases, with the aim of delivering strong returns primarily driven by Fidelity’s stock selection capabilities.  It is managed by three portfolio managers, Matt Jones, Hiten Savani and Daniel Swift.

The Fund’s investment philosophy is anchored on the belief that the consistent capture of proprietary idiosyncratic alpha from Fidelity’s global team of fundamental analysts delivers long term outperformance. Fidelity’s extensive global research platform benefits from over 50 years of investment knowledge and proprietary research that is grounded in the conviction that both overall macroeconomic trends and fundamental research can help predict the prospects of individual companies with a great degree of accuracy

Simon Glazier, managing director of Fidelity International Australia, says there has been growing interest in systematic investing approaches amongst Australian investors. “The current volatile market is one where systematic investing can be particularly attractive.  As an investment approach, it allows customisation, repeatability, risk control and portfolio construction. Investors are telling us that this stable and persistent approach is very attractive in an uncertain environment. And unlike conventional passive strategies, our approach offers the potential to outperform the index by harnessing the best ideas from our global team of analysts.” 

While there can be varied definitions of what systematic investing encompasses, portfolio manager Matt Jones says that Fidelity’s approach is to use strong fundamental research, systematic processes and strong portfolio construction to deliver alpha to investors.

“Systematic investing can also help avoid unintentional biases, both conscious and unconscious. This includes “style-drift”, where a value bet or growth bet, or a preference for large or small caps, can creep into portfolio construction without investors realising it. In addition, we can draw on our vast set of proprietary fundamental data that no-one else has access to, based on research and analysis by Fidelity experts from around the world, over many decades.  We also believe it is very important to be forward-looking, especially in the current environment, which is different to other quant-based funds,” he says.

In its report, Lonsec also noted the resourcing, saying: “The key edge over peers is the breadth of on-the-ground resourcing from Fidelity’s large analyst pool for idea generation.”

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Sam Heithersay

“The Australian market has proven its resilience through a volatile year to date. The enduring effects of the US-Iran conflict will present yet another test of this resilience. The Reserve Bank of Australia (RBA) was in the unique position of lifting rates to combat inflation before war broke out. Rising fuel costs and rates have already taken their toll on consumer and business sentiment but capacity utilization remains high and the labour market tight. Several companies have already reported rising expenses that cannot be absorbed, and consensus forecasts continue to indicate a hawkish stance from the RBA.

“Resources provides some ballast in the local market to help offset these swings in domestic consumer and business sentiment on resurgent inflation and rising rates. Global commodity demand remains robust underpinned by a healthy global capex cycle, notably the AI driven data centre build out. Energy insecurity will add impetus to global renewables build out and EV demand as well as the reconfiguration of global critical mineral supply chains already underway. Rising fuel costs could undermine these margin tailwinds but will be very unevenly distributed and history suggests that the sector in aggregate outperforms during inflationary periods.

“The first phase of AI disruption has disproportionately benefitted a narrow set of AI infrastructure enablers and foundational model pioneers to the detriment of markets like the ASX that have neither. But the next phase could see more diffusion and adoption of AI for operational transformation. We believe Australia is well placed to benefit from this AI diffusion, and our assessments of the ASX highlight meaningful differences in how companies are progressing in AI adoption. AI has the potential to reset long-held competitive advantages and we’ve drawn on historical parallel examples of disruptive technologies to conclude that companies who adapt and pivot rather than just defend their existing competitive moat make better long-term investments.”

Zara Lyons, portfolio manager, Fidelity International, comments: “Australian equities remain an attractive opportunity, though a selective approach is warranted given a macro backdrop that is still restrictive enough to prevent an indiscriminate re‑rating of the broader market. Elevated inflation, restrictive interest rates, geopolitical tensions, ongoing conflict and fiscal policy adjustments are contributing to weakening sentiment from consumers and businesses alike. Inflation has re-accelerated above the Reserve Bank of Australia’s target range, leading to expectations that interest rates could tighten further.

“This setup argues for staying focused on sectors with either structural growth, strong pricing power, or balance-sheet resilience, rather than relying on falling discount rates to do the heavy lifting. This is especially important in Australia, where the market is dominated by financials and resources, so performance is heavily influenced by what happens to banks, iron ore, and broader commodity pricing rather than by a balanced cross-section of the domestic economy.

“As we go deeper into 2026, sectors such as insurance, communications, healthcare, diversified financials and select consumer staples are expected to remain resilient or improve as the year progresses, benefiting from stable demand, pricing power and defensive characteristics.

“Over the longer term, Australia continues to benefit from strong structural advantages, including high standards of corporate governance, an attractive dividend yield relative to global peers and a large, low-cost natural resource base. These factors underpin a broad opportunity set capable of delivering attractive risk-adjusted returns over the cycle.

“Against this backdrop, a selective approach to Australian equities is warranted, with a focus on areas exposed to the country’s long‑term structural growth drivers and supported by bottom‑up fundamentals. The environment continues to favour companies with sustainable competitive advantages, strong management teams and resilient business models. As macro and monetary policy dynamics continue to evolve, attention is expected to remain on areas where improving end‑market conditions support earnings durability, alongside a disciplined approach to valuations.”

By Sam Heithersay, portfolio manager

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Niamh Brodie-Machura

Companies entered the year feeling better than at any point since the chaotic aftermath of the Covid pandemic, driven by a once-in-a-generation investment boom in artificial intelligence (AI).

These are the central findings of Fidelity International’s 2026 Analyst Survey^[1], capturing insights from more than 120 equities and fixed income analysts, based on over 20,000 meetings with company management teams worldwide. The survey captured sentiment through early March; since then, the prolonged conflict in the Middle East, including escalating attacks on energy infrastructure, has introduced a more persistent cost and inflation shock that is shaping the near-term macro backdrop.

While corporate sentiment has strengthened, the survey also highlights emerging pressures beneath the surface. Elevated raw material costs and slowing wage growth are placing pressure on consumers, creating downside risks for the global economy. At the same time, the Middle East conflict has shifted from a headline risk to a supply disruption that tightens physical availability and raises prices, with the risk that prolonged disruption could sustain these pressures for longer than previously expected. 

AI investment broadens

The survey shows the proportion of analysts reporting greater management confidence in business investment over the coming year has climbed back toward post-pandemic peaks.

Analysts are clear on the source of that optimism. The global economy is in the midst of one of the largest investment cycles in years, driven by spending on artificial intelligence and the infrastructure required to support it.

Niamh Brodie-Machura, CIO, Equities at Fidelity International comments: “Our global analyst team’s company-level insights show this is not just a narrow technology rally. AI investment is cascading through power and industrial supply chains, extending the cycle beyond the largest tech platforms.”

That investment is bolstering demand across supply chains and extending revenue visibility for years ahead. Information technology is the clearest beneficiary, but the effects are also visible in materials and energy, where demand for power and the commodities needed to construct datacentres and expand generation capacity is driving a boom in several areas.

Some 81 per cent of IT company managers are moderately or significantly more confident about the year ahead, alongside 65 per cent in materials.

Sam Heithersay, Portfolio Manager, at Fidelity International comments: “The initial phase of this AI rally has been dominated by investment in compute and data centres to the benefit of a narrow set of offshore tech companies but the productivity dividend of this investment is likely to be much more distributed as companies embed AI into workflows to drive operational efficiency. Australia is well placed to benefit from this AI diffusion and we have conducted our own company survey work to better understand which ASX companies are most mature in their AI adoption as we think AI can reset long-held competitive advantages.” 

Costs remain a constraint

Yet the survey also highlights mounting pressure on corporate cost bases. Only 8 per cent of analysts expect inflationary pressures to ease over the next 12 months. Around half anticipate costs pressures will remain at current levels, while 40 per cent foresee further increases. Materials and industrial sectors report particularly strong upward pressure.

Higher raw material prices, energy costs and trade frictions, intensified by geopolitical tensions, are sustaining supply-side inflation and adding to pressure on demand.

Justin Teo, Investment Analyst, Equities at Fidelity International comments: “The Reserve Bank of Australia increased interest rates by 25 basis points at each of its last two meetings in February and March, leading to a cash rate of 4.10 per cent. This is contrary to some central banks around the world that are looking to cut rates in 2026. Supply-side inflation – in particular oil and gas – has increased the probability of higher interest rates globally due to inflation concerns. Finding companies with pricing power will be critical for investors as these companies are more likely to maintain margins, as was the case during the COVID related supply-chain inflation period over 2020-22.”

Fidelity’s quarterly indicators also show expectations for labour cost growth moderating to their lowest level in three years. The divergence between sustained input costs and softer wage momentum raises concerns about household purchasing power. 

Sam Heithersay comments: “Australia is a relatively high-cost jurisdiction, labour costs increased materially post-Covid and are sticky downward so remain above pre-Covid norm. Company management seems resigned to a higher for longer cost base given low unemployment and a skills shortage. Australia’s resources exposure provides a partial offset to this persistent inflation as commodities have historically provided a natural hedge against global cost inflation.”

A widening divide

For analysts covering consumer staples and discretionary companies, affordability and demand risks are now the primary concern. While AI-exposed industries benefit from capital markets strength and infrastructure spending, middle-income consumers face rising fuel costs and limited wage growth. Healthcare analysts similarly point to fiscal trade-offs as governments increase defence spending, potentially intensifying pressure on public healthcare budgets.

The result is an increasingly uneven economic landscape. Companies tied directly to AI infrastructure are seeing confidence, capital deployment and expected returns improve. In contrast, sectors dependent on stretched consumers or exposed to political pricing pressures face tighter margins and demand headwinds.

Niamh Brodie-Machura comments: “The investment backdrop is supportive, but it is becoming more selective. Companies with pricing power, strong balance sheets and exposure to AI are positioned differently from those reliant on stretched consumers. As the gap between winners and losers widens, detailed fundamental research and active stock selection become increasingly important. Against a more volatile geopolitical backdrop, the survey’s overall message remains that AI investment is reshaping the corporate cycle. The breadth of spending across infrastructure and supply chains suggests that the impact extends beyond technology giants. However, the interaction of prices, politics and wage dynamics means the benefits are not yet evenly distributed, reinforcing signs of a K-shaped global economy.”

Justin Teo adds: “The K-shaped economy seen in the United States is also present in Australia where people in the top quartile of income are experiencing positive wealth effects from asset price inflation, whereas people in the bottom quartile are experiencing tighter household budgets due to limited wage growth and cost inflation for necessities like groceries and fuel. What’s unique to Australia is interest rates have been rising, so consumers with mortgages are facing higher servicing costs and lower disposable income, whereas retirees who have no mortgage and invest largely in term deposits are experiencing greater disposable income. This is a tough environment for consumer discretionary stocks.”

Read the report.

———– 

Notes:
[1[ https://www.fidelity.com.au/learning-hub/analyst-survey/ Source: Fidelity International 2026 Analyst Survey. The survey was conducted 20 Feb – 2 March 2026, with follow-up interviews with the team following the start of the Middle East conflict. The survey features responses from 122 analysts around the globe.

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Max Stainton

The US Federal Reserve left rates unchanged, as expected, maintaining the Fed funds target range at 3.5–3.75 per cent. In the press statement, the Committee (FOMC) made clear that geopolitical risks add an increased layer of uncertainty to both sides of the mandate, but other than that, there was little change to the consensus-driven statement. Indeed, little change was the order of the day, with a small 20 basis point increase in core inflation expectations, which wasn’t mirrored on the interest rate side resulting in a modestly dovish tilt. However, the shift to a single dovish dissent, versus the two or three expected, added a slightly hawkish nuance. Taking it all together, the sense is of a committee constrained by uncertainty, waiting for events in the Middle East to unfold.

In the press conference, Chair Powell attempted to provide a measured and calm set of forward guidance emphasising the need not to overreact to current events, noting “it’s too soon to know how these will affect the data”, and emphasising exceptionally high uncertainty. He instead placed emphasis on maintaining inflation credibility, particularly through the lens of inflation expectations. Chair Powell also made clear that the Committee is comfortable taking a wait-and-see approach as the impact of the conflict unfolds, while placing greater weight on the need for goods inflation to slow meaningfully over the year. He was explicit that any bias towards easing remains conditional on that progress materialising.

Looking ahead to the rates outlook for the rest of the year, this will unsurprisingly be dominated by developments in the Middle East. In our base case scenario of oil prices remaining elevated but rangebound at $90-$110/bbl, we would expect the Federal Reserve to remain on hold for longer, with the bar for near-term easing rising. That said, we do not think this environment, on its own, is sufficient to drive a renewed tightening cycle, as the growth drag should remain manageable and the shock is likely to have a one-time price effect, rather than being broadly inflationary.

By contrast, a move into an upside tail risk scenario with oil prices above $120/bbl (a significant fat tail risk that is currently rising in probability) would create a materially more difficult policy backdrop. Such a sustained oil move would reinforce a higher-for-longer stance, particularly if transport and broader goods prices begin to reaccelerate alongside rising fuel costs. However, we would also expect the medium-term policy path to become less linear, as a deeper energy shock would raise the risk of demand destruction and recession later in the year.

Taken together, if our base case scenario plays out, then we would still expect one to two cuts from the Fed this year. But we would note that events are shifting rapidly in the Middle East with signs of escalation appearing after Iranian energy infrastructure was hit today, which, if this persists, almost certainly removes the chances of cuts this year.”

By Max Stainton, senior global macro strategist

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Peiqian Liu

China’s latest Government Work Report delivered few surprises. Most quantitative targets aligned closely with market expectations, reinforcing a message of policy continuity: stable growth, calibrated adjustment, and incremental easing rather than large-scale stimulus. The real GDP target has been adjusted to 4.5–5%, compared with “around 5%” in the prior two years, reflecting a more realistic assessment of structural headwinds and softer external demand.

The inflation target remains unchanged at 2%, signalling confidence that price pressures will stay contained. This reflects the economy’s bifurcated dynamics where pockets of resilience coexist with areas of softness. Policymakers appear comfortable maintaining price stability while supporting moderate growth. Labour market targets remain steady, with 12 million new urban jobs and a surveyed unemployment rate of 5.5%. Employment stability continues to serve as the primary social and macroeconomic anchor.”

Anchoring stability and prioritising rebalancing

The overarching theme is economic rebalancing. Policymakers are placing greater emphasis on domestic demand – both investment and consumption – as external demand becomes more uncertain and the supply-led growth model shows diminishing returns. After several years of leaning heavily on industrial capacity and export strength, authorities appear intent on gradually shifting the growth engine inward.

However, this transition remains measured. The policy mix still favours investment and corporate sectors, even as official rhetoric highlights support for households. Technology, innovation, and new growth drivers continue to anchor long-term strategy, reflecting Beijing’s structural focus on upgrading productive capacity and industrial competitiveness.

The fiscal stance remains expansionary but measured. The official budget deficit is maintained at 4% of GDP, signalling a structurally wider central government role in supporting growth. Ultra-long central government bond issuance will remain elevated at RMB 1.3 trillion, consistent with the shift toward longer-duration funding and central balance sheet utilisation.

While boosting consumption is a stated objective, the approach is restrained. Support measures appear directed toward employment stability and wage growth rather than large-scale direct transfers. Household policies are likely to focus on targeted groups rather than broad-based fiscal expansion. This underscores both fiscal constraints and a preference for structural, supply-side measures over demand-driven stimulus.”

External Risks and Policy Flexibility

The conflict in the Middle East is unlikely to materially alter China’s domestic growth trajectory, given contained spillovers so far. However, policymakers have signalled greater flexibility in both policy calibration and growth targets, reflecting a precautionary stance amid rising external uncertainties and potential volatility in global energy and financial markets.

The report contains early signals of tax reform, including commitments to expand revenue sources and increase the tax-to-GDP ratio. This suggests a gradual shift away from property-related financing models that have underpinned local government revenues in recent years. The adjustment reflects both structural necessity and the cooling of the real estate sector.

Given the overall fiscal impulse, the burden of additional easing is likely to fall more on the central government. Incremental fiscal expansion in coming quarters remains possible, but large-scale stimulus appears unlikely at this stage.

By Peiqian Liu, Asia economist

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Sam is an experienced investment professional who joined Fidelity in 2018. He has been a senior member of the Australian analyst team since June 2021, covering the Resources sector, a critical sector within the Australian market, delivering strong performance in the role. Prior to this, Sam spent three years in Fidelity’s London office covering US Healthcare, where he navigated the volatility of a US Presidential election cycle and the Covid-19 pandemic while generating positive investment results.

Sam holds a Masters in Business Administration from London Business School, a Masters in Mining Engineering from UNSW, and a Bachelor of Laws and Bachelor of Commerce from The University of Adelaide.

Sam has worked closely with Paul Taylor over the past five years, and the two share a closely aligned investment philosophy. His appointment adds further depth and continuity to Fidelity’s Australian equities capability, supporting long‑term investment outcomes for clients.

Niamh Brodie-Machura, Chief Investment Officer, Equities, Fidelity International comments: “Sam’s appointment reflects our continued focus on strengthening our Australian equities capability through the development of internal talent. He is a highly regarded investor with strong analytical skills and a proven contribution to investment performance. His addition as Co‑Portfolio Manager provides further depth, continuity and long‑term strength to the team as we remain focused on delivering strong outcomes for our clients.”

The Fund’s investment strategy, objectives and process remain unchanged.

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Sam Besley

Fidelity International has appointed Gavin Butt as regional sales manager and Sam Besley as sales manager, further strengthening its wholesale distribution capability and reaffirming its long‑term commitment to the Australian market.

The appointments reflect Fidelity’s continued investment in deepening client relationships across the intermediary market and enhancing local sales expertise to deliver more tailored support aligned to evolving client needs.

Mr Butt will be based in Sydney and will focus on developing and deepening relationships across the private wealth, private banking and family office segments, supporting advisers with Fidelity’s range of managed funds, ETFs and managed accounts. He will report to Lauren Jackson, head of wholesale sales.

Mr Butt joins Fidelity International with more than 20 years’ experience across wholesale distribution, investment consulting and asset management. Most recently, he held senior roles at Natixis Investment Managers, including research & consulting and state manager, NSW & ACT, working closely with wholesale teams and research houses to support growth and retention across a multi‑affiliate platform. He has previously held senior roles at NAB Asset Management, AMP Capital, and Amundi.

Mr Besley will be based in Melbourne and joins Fidelity as sales manager, where he will be responsible for leading and deepening relationships with Fidelity’s key strategic clients at a head‑office level, including consultants and private wealth groups, and driving commercial relationships with key strategic clients. He will report to Lukasz de Pourbaix, head of strategic sales and solutions.

Mr Besley brings more than 15 years’ experience across wholesale distribution and strategic account management. He joins Fidelity from Ironbark Asset Management, where he was a key account manager covering consultant, private wealth and adviser channels. Prior to this, he held senior wholesale distribution roles at Robeco and Goldman Sachs Asset Management and previously worked at Fidelity International as a business development manager.

Simon Glazier, Fidelity’s managing director, Australia, says the appointments highlight Fidelity’s continued investment in the Australian market and its focus on building long‑term adviser partnerships.

“These appointments reflect our ongoing commitment to the Australian market and to investing in experienced, high‑quality local talent to support advisers and strategic partners. Gavin and Sam each bring deep market knowledge and complementary skill sets that will further strengthen our wholesale sales capability and help us deliver long‑term value for clients.”

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Simon Glazier

Australian workers are generally optimistic, notably about their work and health. However, there is growing concern about their long-term financial prospects, with particular attention to challenges in retirement planning. This is according to Fidelity International’s Global Sentiment Survey.

The annual survey, conducted with 38,000 respondents across 35 markets including US, Japan, mainland China, Brazil, the UK, Saudi Arabia and Australia, aims to analyse the sentiment of working adults towards their finances, health, work and life.

According to the research, 65 per cent of Australian workers are mostly optimistic about the next six months while 23 per cent are feeling pessimistic. However, when compared to responses from around the world, Australians are slightly below the average, where 69 per cent of global respondents say they are optimistic. They are also less optimistic that others in the APAC region in particular India (86 per cent optimistic) and China (85 per cent optimistic).

72 per cent of Australian workers say that cost of living/impact of rising inflation is causing them stress, compared to an average of 64 per cent in the Asia Pacific region. The next highest cause of stress is the state of the economy (60 per cent) followed by global geopolitical events (55 per cent). Meeting long-term financial goals (53 per cent) and saving enough for retirement (51 per cent) were also of concern.

Simon Glazier, managing director of Fidelity International says there are signs that Australians are more concerned about the economic outlook and geo-political volatility, and more affected by cost-of-living pressures, than their counterparts in other countries. “Most people, including in Australia, feel their work, personal lives and health are in good shape but are less confident about their overall finances, and less confident still about their retirement planning.  The research highlights that financial confidence is higher in the short-term, such as managing immediate personal finances and debt, than it is for longer term, including planning for the future and retirement planning.”

“In particular, Australian workers are more likely to say they feel stressed by cost-of-living issues, and more likely to have reduced their savings levels over the past year, than the global average. This could be driven by factors such as fears about housing affordability, or broader concerns about the concentration of the stock market and a potential AI bubble which would affect retirement savings in superannuation,” Simon Glazier says.

Around two-thirds of Australian workers describe their work/life balance as very or quite good (66 per cent), followed by work at 65 per cent and physical health at 62 per cent, with mental or emotional health and personal and social life close behind (both at 60 per cent).

The area of most concern is retirement planning, with just 43 per cent saying this is very or quite good.

“When it comes to retirement there is almost an equal number of Australians who feel ‘confident’ and ‘not confident’ about being financially comfortable in retirement (36 per cent vs 32 per cent),” Simon Glazier says. “This is despite Australia having a well-established superannuation regime that is looked up to by many other countries.

“It is clear that market volatility and uncertainty is playing a role in this. Many Australians say they haven’t changed their approach to saving/investing for retirement over the past six months (43 per cent).  However, of those who have changed their approach, the reasons given are revealing – 18 per cent say they have put more money towards investments because they believe the stock market will do well, while 10 per cent have put more into cash because they are worried about volatility. This shows there are very mixed views about the outlook for markets.”

The research also looked at whether people are planning to change their retirement timeline as a result of events in the past six months.

While two-thirds of 50+ year workers say they haven’t changed their plans (66 per cent), 27 per cent say they will retire later than expected and just seven per cent say they will retire earlier. Of these, the main reason for retiring earlier is to provide care for a family member (34 per cent). 25 percent are retiring earlier because of ill-health or physical impairment, and 21 per cent were made redundant and couldn’t find another job.  Just 30 per cent are retiring earlier because they have enough saved and can afford to.

For those who think they will retire later than expected, the main reason is that their retirement savings are not as much as they expected (41 per cent) followed by the fact that they enjoy work so want to keep working for longer (32 per cent).

Cost of living pressures are also having a direct impact on people’s financial situation, with savings levels in Australia taking a hit.

The research shows that Australian workers are more likely to have saved less in the past six months (28 per cent) than to have saved more (23 per cent) and the main reason given for saving less is rising household expenses (62 per cent).

“This is by far the biggest response – the next highest is 21 per cent who are spending more on ‘extras’ such as discretionary or luxury spend. Globally, the only other country that is spending more on household expenses, and therefore saving less, is Japan (63 per cent). Furthermore, those Australians who have saved more over the past six months say that the main reason is that they are spending less on extras (49 per cent).  The message is that Australians are spending more on essentials, and less on luxuries, compared to their global counterparts,” Simon Glazier says.

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