Most Australians have felt the pressure of rising costs.

Australians aged 60 and over remain positive about retirement, but rising cost of living continues to impact lifestyle, financial security, and confidence their money will last, according to the third annual Challenger Retirement Happiness Index.

Challenger, in partnership with independent research provider, YouGov, surveyed more than 2,000 Australians aged 60 and over and found overall happiness among older Australians remains strong, with this year’s Challenger Retirement Happiness Index score rising to 69.5 (up from 68.9 in 2025).

Volunteers were found to be the happiest older Australians, with an average happiness score of 77 compared with 69 for those who do not. Married couples (72 vs 66 for unmarried) and homeowners (73 vs 60 for non-homeowners) also beat the benchmark.

More broadly, the Index showed activities and hobbies (80), a clear sense of purpose (72), and physical and mental health (68), remain the biggest drivers of retirement happiness.

Having enough money to enjoy retirement was a top priority for more than two-fifths (44%) of Australians aged 60+, ranking just behind physical health (58%) as the most important factor to a happy retirement.

The research found that retirees key savings goals were certainty their money will last for life (72%), confidence to cover health and aged care costs (65%), and maintaining their lifestyle (53%).

Commenting on the findings, Challenger Chief Executive, Customer, Mandy Mannix, said the research shows life can get even better in retirement but confidence and certainty were key.

“One of the strongest insights is the powerful role purpose plays in retirement happiness. People who volunteer, stay active in their communities, and maintain hobbies and interests consistently report higher levels of happiness,” said Ms Mannix.

“It goes to show that retirement really can be the prime time of life. The key is to have the confidence
and certainty to relax in those golden years, knowing your money will last and you can afford to enjoy all
retirement has to offer,” she said.

Cost of living continues to bite

For the third straight year, cost of living continues to be a concern for older Australians who are worried about the impact of rising costs on lifestyle (57%), financial security (54%), and running out of money in retirement (46%).

Two in three (67%) Australians aged 60 and over believe inflation and cost of living are the most important thing to plan for in later years of retirement, with the challenge particularly acute for women who often retire with less super.

Women (48%) are more likely than men (43%) to rank fear of running out of money in retirement as one of the top three things impacted by the rising cost of living. Similarly, pre-retirees (49%) are more likely than retirees (39%) to rank this as one of their top three concerns.

“Today’s retirees are the first generation having built significant superannuation savings. Yet, after decades of focusing on saving, many retirees find it surprisingly difficult to switch to spending once they retire,” said Ms Mannix.

On average, Australians aged 60 and over believe the minimum amount of annual income (per person) needed for a person aged 65 or more to live comfortably and happily in retirement is $70,398 or approximately $1,350 per week. This is higher than the ASFA Retirement Standard that recommends $54,840 a year ($1,055 per week) for a comfortable lifestyle for a single.

“Most Australians have felt the pressure of rising costs. Whether it’s paying for essentials like petrol, going out for lunch, or taking a holiday. These higher prices can be felt even more by retirees who now face the reality of living on a set amount of money for the rest of their lives,” she said.

“The dollar value of a lump sum when you retire can seem like a lot of money, but it has to last a long time. It can be hard to know how much to withdraw, knowing that the purchasing power of $1 million today can halve in 20 years’ time. The impact of inflation can be dramatic, and it is a real concern.

“That’s the power of a guaranteed regular income. A ‘paycheck’ means retirees know their needs are taken care of giving them greater confidence to spend on their activities and hobbies that give them purpose and happiness in retirement,” added Ms Mannix.
Guidance needed to improve retirement outcomes

Nearly four in five Australians aged 60+ (76%) said they would be much happier if they had a guaranteed income for life in retirement. Yet, more than half of all Australians 60+ (59%) did not know about, or hadn’t heard of, lifetime income streams as a financial strategy for retirement.

A clear knowledge gap persists, despite 1 in 3 Australians (30%) saying they would be happier in retirement with greater financial education. Free education provided by a super fund or bank (52%), government agency (50%), or paid education provided by a professional financial adviser (39%) were the top three preferred approaches to building financial knowledge and boosting retirement happiness.

“After decades of savings, we are asking retirees to do something that feels completely counter-intuitive – to start spending. That change requires financial guidance and support,” Ms Mannix said.

“Older Australians want a guaranteed regular income in retirement to help manage day-to-day expenses that can provide financial security for life, but access and awareness remain key barriers.”

The post Retirement happiness on the rise, but costof-living worries cloud confidence appeared first on AdviserVoice.

Mandy Mannix

Australians are living a happy retirement, but for those approaching retirement the picture is less certain. New data from the Challenger Retirement Happiness Index, released yesterday, shows preretirees are feeling more anxious about their financial future, with confidence taking a hit over the past year.

The second annual Challenger Retirement Happiness Index, developed in partnership with independent research provider, YouGov, surveyed 1633 Australians aged over 60 to track factors driving retirement happiness. While overall happiness remains strong, pre-retirees are feeling the squeeze, with rising living costs and a lack of financial certainty clouding their outlook.

Those in retirement reported higher scores of happiness (70) compared to pre-retirees (66), but cost-ofliving pressures are impacting confidence across the board. Three in four pre-retirees (76%) and 72% of all Australians 60+ saying rising cost of living has affected their financial security, with a third (34%) noting a significant impact.

While the overarching Index score edged down slightly to 69 (down from 70 in 2024) the key drivers of retirement happiness remained unchanged including activities (80), mental health and wellbeing (75), and a sense of purpose (72).

Commenting on this year’s findings, Challenger Chief Executive, Customer, Mandy Mannix, said: “Ask a happy retiree what brings them joy, and they won’t just talk about their super balance. They’ll talk about the coffee catchups, the morning walks, and the holidays they have planned to visit family or see the world. The little things make a big difference – which is why activities and purpose are so important.”

“When we asked Australians over 60 what made them happy, three things stood out: good physical health (59%), enough money to enjoy life (41%), and good mental health (38%),” Ms Mannix added.

Concerns shake confidence

Women and unadvised Australians are facing the highest barriers to a confident retirement. A third of women over 60 (34%) are extremely or very worried about outliving their savings compared to 20% of men. Unadvised Australians are twice as likely to be extremely or very worried about outliving retirement savings (35% compared to 19%).

“We know retirement can be one of the most rewarding stages of life—but confidence is key,” Ms Mannix said. “When people feel uncertain about their finances, they tend to hold back. That’s led to a chronic underspending problem in retirement, with many Australians living more cautiously than they need to.

“Retirees go from a steady pay cheque to a lump sum, and that sudden shift makes it hard to budget with confidence. That’s why a guaranteed, regular income for life is so powerful—it replaces that pay cheque, can keep up with inflation, and gives retirees the freedom to actually live their best life in retirement.”

Education key to empowering retirees

The research revealed that better guidance and simple education could be key to helping Australians feel confident enough to spend and enjoy their retirement – without the fear of running out.

Three in four (74%) Australians aged 60+ believe better financial education would improve their happiness, but half (51%) say they don’t have the resources to plan for retirement. One in five – around 1.2 million retirees – don’t know where to start.

The Challenger Retirement Happiness Index findings align with recent UNSW research, which revealed 57% of people don’t even know that lifetime income solutions exist, despite their ability to significantly improve confidence to spend in retirement.

With nine in ten unadvised (those who have never received financial advice) Australians wanting free, basic retirement education, there is a significant opportunity to improve financial literacy and help retirees feel more secure about their future. With the right education and income strategy, retirees could enjoy more freedom and financial security.

“Retirement confidence isn’t just peace of mind—it’s quality of life. When people feel financially secure, they spend, plan, and live without that worry. That’s why guaranteed regular income matters, and why Challenger is committed to helping retirees feel secure for a better future,” Ms Mannix said.

Read the report.

The post Research reveals Australians happy in retirement but pre-retiree confidence is waning appeared first on AdviserVoice.

Mandy Mannix

Challenger’s inaugural Retirement Happiness Index paints a vibrant picture of Australians, in or near retirement, with physical health and financial security being the primary factors influencing contentment of those over 60.

In collaboration with independent research house, YouGov, Australia’s leading retirement income provider, Challenger, conducted the study of over 1000 Australians over 60 to delve into the intricacies of retirement happiness.

The 2024 Challenger Retirement Happiness Index revealed a score of 70 for Australians over 60 encompassing a range of factors such as mental and physical health, social connections, purpose, and financial wellbeing.

Notably, activities and hobbies scored the highest (79.5) followed by mental health (77.6). Physical health (61.5) and financial stability (56.3) were flagged as areas with the most potential for improvement in enhancing overall wellbeing.

More than 2 in 3 (66%) of Australians over 60 said they would be much happier if they didn’t have to worry about finances in retirement, while more than 70 per cent believe a guaranteed income in retirement would significantly boost happiness, with more than 40 per cent strongly agreeing.

Challenger Chief Executive, Customer, Mandy Mannix, explained the importance of understanding all the drivers of happiness in retirement.“We’ve launched the Retirement Happiness Index to explore new dimensions of retiree satisfaction. It is fantastic to see majority of Australians are enjoying or expecting a happy, healthy retirement,” Ms Mannix said.

“It is another way that Challenger looks to deliver on its purpose of providing customers with financial security for a better retirement. A better retirement is about so much more than finances but having a degree of confidence that your savings will last plays an important role.

“Almost half of respondents identify financial security as an area they wish to improve, highlighting the work we must do as an industry to safeguard retirees’ golden years and foster a better, happier retirement.

“Reassuringly retirees felt their happiness would improve with access to the right financial education, as well as support through financial advice and a regular income to enjoy a safe, stable retirement. This would empower retirees with the confidence to spend and capacity to pursue their passions,” she added.

Good physical and mental health alongside having enough money to enjoy retirement were revealed to be the most important elements to a happy retirement.

Rising cost of living impacting retirees’ happiness

Rising cost-of-living and affordability were growing concerns, with 2 in 3 Australians over 60 saying it impacted their confidence they would have enough money for retirement.

The post More than a nest egg: Challenger’s Index reveals drivers of retirement happiness appeared first on AdviserVoice.

Mandy Mannix

Challenger’s inaugural Retirement Happiness Index paints a vibrant picture of Australians, in or near retirement, with physical health and financial security being the primary factors influencing contentment of those over 60.

In collaboration with independent research house, YouGov, Australia’s leading retirement income provider, Challenger, conducted the study of over 1000 Australians over 60 to delve into the intricacies of retirement happiness.

The 2024 Challenger Retirement Happiness Index revealed a score of 70 for Australians over 60 encompassing a range of factors such as mental and physical health, social connections, purpose, and financial wellbeing.

Notably, activities and hobbies scored the highest (79.5) followed by mental health (77.6). Physical health (61.5) and financial stability (56.3) were flagged as areas with the most potential for improvement in enhancing overall wellbeing.

More than 2 in 3 (66%) of Australians over 60 said they would be much happier if they didn’t have to worry about finances in retirement, while more than 70 per cent believe a guaranteed income in retirement would significantly boost happiness, with more than 40 per cent strongly agreeing.

Challenger Chief Executive, Customer, Mandy Mannix, explained the importance of understanding all the drivers of happiness in retirement.

“We’ve launched the Retirement Happiness Index to explore new dimensions of retiree satisfaction. It is fantastic to see majority of Australians are enjoying or expecting a happy, healthy retirement,” Ms Mannix said.

“It is another way that Challenger looks to deliver on its purpose of providing customers with financial security for a better retirement. A better retirement is about so much more than finances but having a degree of confidence that your savings will last plays an important role.

“Almost half of respondents identify financial security as an area they wish to improve, highlighting the work we must do as an industry to safeguard retirees’ golden years andfoster a better, happier retirement.

“Reassuringly retirees felt their happiness would improve with access to the right financial education, as well as support through financial advice and a regular income to enjoy a safe, stable retirement. This would empower retirees with the confidence to spend and capacity to pursue their passions,” she added.

Good physical and mental health alongside having enough money to enjoy retirement were revealed to be the most important elements to a happy retirement.

Rising cost of living impacting retirees’ happiness

Rising cost-of-living and affordability were growing concerns, with 2 in 3 Australians over 60 saying it impacted their confidence they would have enough money for retirement.

Unadvised Australians (those who have never received financial advice) are more likely to report cost-of-living as having a significant impact to their financial security (39%) compared to those who have received financial advice (25%).

“We know the fear of outliving savings is a growing concern among older Australians. Providing retirees with the confidence to convert their retirement savings into a regular income can materially improve their quality of life, supporting better retirement outcomes as well as benefiting broader society and the Australian economy,” Ms Mannix said.

Read the report.

The post More than a nest egg: Challenger’s Index reveals drivers of retirement happiness appeared first on AdviserVoice.

Mandy Mannix

Challenger has announced its fixed term annuities are now available within the Netwealth Platform, simplifying and broadening access to income solutions for advised customers.

Making fixed term annuities available within the Netwealth Platform delivers greater efficiency for advisers and their clients, removing the need to quote or complete a separate application form, and is fully integrated for Netwealth client reporting.

Annuities are available for terms of up to five years across Netwealth’s investment, super and pension platforms. This allows customers to invest both superannuation savings and non-superannuation money without leaving the platform.

Mandy Mannix, Challenger’s Chief Executive, Customer said: “Fixed term annuities are a really attractive option for anyone seeking to help maximise returns on their holdings, and of course for those simply looking for certainty of regular income,” Ms Mannix said.

“We are constantly looking to improve the efficiencies for advisors using our products and our partnership with Netwealth does just that, by providing advisers and their clients easy access to fixed term annuities with all the efficiencies that come with investing in a platform.

“Investors seeking secure income are increasingly recognising the benefits of fixed term annuities, which are currently offering the most attractive rates we have seen in a decade, often at a premium to major bank term deposits.

“Providing Challenger fixed term annuities in platform expands access to a broader range of customers, enabling advisers to integrate term annuities into portfolios to deliver better retirement outcomes for their clients.”

Matt Heine, Netwealth CEO and Managing Director, said the launch of an in platform annuity solution allows advisers easy access to fixed term annuities in the same way they would invest in any other fund or product.

“Our partnership with Challenger is another example of Netwealth leading the market in offering the most comprehensive suite of products for advisers and their clients” Mr Heine said.

“In the current environment investors are looking for ways to protect their portfolio from market volatility and address the persistent high inflation environment we are facing. This partnership provides greater access to an alternative to term deposits with attractive rates.”

The post Challenger fixed term annuities now available within Netwealth Platform appeared first on AdviserVoice.