There is clearly a significant gap between the stock image of retirement and the reality most Australians are facing.

Internet searches of retirement often surface joyful images of cruises, golf, beaches and bowls, but new HESTA insights indicate that’s simply not what most Australians expect their retirement to look like.

The survey of HESTA members found just one-in-nine (11%) believe the retirement they see in media reflects the retirement they see for themselves^[1].

HESTA Chief Experience Officer Lisa Samuels said the nature of retirement was changing, and the system needed to modernise so more Australians could retire on their terms. This includes removing barriers discouraging pensioners from working more and giving super funds the ability to proactively help members transition into the right retirement products.

“There is clearly a significant gap between the stock image of retirement and the reality most Australians are facing into. Retirement is different for everyone and Australians are looking for support to retire their way,” Ms Samuels said.

“More than 2.5 million Australians are expected to retire over the next decade and right now, many are just focused on getting through next week. And for those beyond retirement age, we are seeing large numbers of people wanting to return to work later in their lives to support their finances or retain connection to their communities.

“It’s in this environment that we need to look at further ways to modernise the system so that it can help more Australians retire the way they want to. These proposed reforms range from practical fixes for pensioners in the workforce to new powers for funds to guide members into suitable retirement products at the right moment.”

The call to focus on building a modern retirement system comes amid ongoing cost-of-living challenges, with one-third of all respondents saying cost-of-living pressures had affected their ability to manage their super.

The survey also found the average age members want to retire is 66, a year prior to when Australians are eligible to claim an age pension but six years after they can begin accessing their superannuation savings.

“When we asked members for words that come to mind when thinking about their future retirement, the most common weren’t ‘cruises’, ‘golf’, ‘travel’ or even ‘relaxed’. Instead, leading the way were ‘comfortable’, ‘time’, ‘happy’, and ‘work’, alongside several references to feeling ‘anxious’. This is the real life experience many Australians expect,” Ms Samuels said.

Key changes HESTA is calling for to modernise the retirement system so it is simpler and more flexible, include:

• Support pensioners to work more and keep more of what they earn, by removing employment income from the Age Pension Income Test.
• Prompt members to specific retirement products, to support timely transition to the retirement phase of superannuation.
• Allow members to top up their retirement income streams with income from work.
• Establish data sharing between funds and government agencies, to unlock data to deliver better advice, engagement and services.

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Notes:
[1] Based on a survey of 437 HESTA members conducted in May 2026.

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With many HESTA members feeling cost of living pressures, measures such as personal income tax cuts and offsets, reductions to the cost of medicines and fuel, and ongoing efforts to boost the supply of housing could provide much needed assistance.

The health and community services sector, where HESTA members predominately work, benefited from further funding for hospitals, urgent care and aged care.

HESTA Chief Experience Officer Lisa Samuels said the Federal Budget had been handed down against a backdrop of global economic uncertainty, with many Australians continuing to do it tough.

“This Budget has been delivered in a difficult environment, with geopolitical instability and persistent cost-of-living pressures shaping everyday choices for our members and many working Australians,” Ms Samuels said.

“The typical HESTA member is a 42-year-old woman earning $63,000 a year and any relief the Government can deliver is welcome.”

Ms Samuels said HESTA particularly welcomed the boost to the Low Income Superannuation Tax Offset (LISTO)^[1] being reflected in the Budget Papers, as well as the upcoming extension of Paid Parental Leave, building super contributions on Paid Parental Leave to 26 weeks.

“HESTA has long advocated for the lifting of the LISTO payment and permanently linking it to personal income tax thresholds as a meaningful step forward, particularly for those working in lower-paid caring professions. Combined with extended paid parental leave and super paid on every one of those 26 weeks, these changes will make a real difference to the retirement balances of Australia’s lowest-paid workers,” she said.

HESTA continues to call on Government to modernise the retirement phase of super so more Australians can benefit from tax-free retirement investment earnings when they are eligible, and so retirees aren’t penalised for continuing to work and contributing to Australia’s economy and communities.

HESTA modelling shows only 45% of eligible Australians voluntarily transition to a tax-free retirement account. By 2030, nearly 3 million Australians could collectively miss out on $5.44 billion in retirement savings each year by remaining in accumulation accounts.

That’s why HESTA is calling for a default retirement transition mechanism – one that could automatically move eligible members into the retirement phase, unless they opt out. This has the potential to put billions of dollars into Australian retirees’ pockets and help boost the Australian economy, while providing a strong safety net for those nearing and in retirement.

“Dignity in retirement should be for everyone. Our members have spent their working lives caring for other Australians – they deserve a super and retirement system that works just as hard for them,” Ms Samuels said.

HESTA further outlined practical ways to make the super system fairer and more flexible in its 2026-27 Pre-Budget Submission.^[2]

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