Melinda Howes

AMP’s latest Retirement Confidence Pulse Deep Dive report – Can we afford kids? – finds 53 per cent of respondents aged 20–29 had scaled back their intended family size because of cost pressures. Almost half (48 per cent) had reconsidered having children, while 44 per cent had delayed parenthood.

The concerns extend well beyond the cost of raising young children. Across all age groups, 57 per cent believe having children makes it harder to retire comfortably, rising to 61 per cent among women.

Nearly three in four Australians (74 per cent) believe younger generations are being forced to choose between starting a family and building long-term financial security.

Housing also looms large, with 63 per cent of respondents in their 20s feeling they need a foot on the property ladder before having children.

The key findings

Australians in their 20s:

• 53% say cost-of-living pressures have reduced the number of children they intend to have.
• 48% have reconsidered having children and 44% have delayed parenthood because of cost pressures.
• 63% feel they need a foot on the property ladder before having children.

All adult Australians:

• 57% believe having children makes it harder to retire comfortably, including 61% of women and 54% of men.
• 74% believe younger generations are being forced to choose between starting a family and building long-term financial security.
• 71% worry about the future financial security of their children.

Melinda Howes, AMP Group Executive, Superannuation and Investments, said: “For many young Australians, the question ‘Can we afford kids?’ carries a worry about their financial future. “Retirement might feel a long way off, but as cost of living pressures escalate, decisions about housing, having children and taking time out of work can shape financial security for decades.

“That’s why building retirement confidence needs to start well before people approach retirement.

“These findings don’t mean parents are destined for a less comfortable retirement. They show how difficult younger Australians believe it is to balance the family life they want with feeling financially secure later on.

“People need practical support to understand their options, including what parental leave or reduced working hours could mean for their income and super.

“Accessible advice can help them plan for those changes and feel more in control of their future.”

AMP Deputy Chief Economist Diana Mousina said: “Financial pressures are one part of a broader shift towards later parenthood and smaller families. As Australia ages, the challenge is sustaining living standards and meeting growing demand for care without placing an ever-greater burden on working families.”

Planning for kids

• Plan for the income change: Map out your budget before, during and after parental leave, including childcare costs and any reduced working hours.
• Check your support: Understand your employer’s parental leave arrangements, government payments and childcare subsidies you may qualify for.
• Build some breathing room: Set a manageable savings goal and, where possible, trial your parental leave budget before the baby arrives.
• Keep retirement in the picture: Check how time away from work could affect your super, and explore advice available through your fund.

About the research

The report draws on AMP-commissioned research conducted by third-party research company Dynata among 2,000 Australians in July 2026. Findings describe respondents’ views and reported intentions, rather than measured effects on retirement outcomes.

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Melinda Howes

AMP Super has launched a new digital experience designed to help members better understand, plan for and manage retirement, as research reveals almost three in five Australians worry their retirement savings will run out.

AMP’s latest Retirement Confidence Pulse found just 52 per cent of Australians feel financially confident about retirement, while 58 per cent fear their savings will run out^[1].

The new AMP Super app brings together retirement planning, personalised digital advice and pension management in a single experience, helping members move beyond simply checking their balance to understanding their retirement outlook and taking action to improve it.

Melinda Howes, AMP Group Executive, Superannuation and Investments,said it’s clear many Australians are looking for more than a snapshot of their super balance.

“This new digital experience brings together advice, retirement planning and income management in one place, making it easier for members to understand their position, make informed decisions and manage their retirement income with confidence.

“Our members want to know whether they’re on track for retirement and what practical steps they can take to improve their future financial security.

“Our research shows too many Australians are still uncertain about whether they’ll have enough money to retire with confidence. That is not good enough when you consider the quality of our super system and the savings it’s helping Australians build.”

Through the new app members can:

• See a clearer retirement picture through projected retirement income and insights into how long their savings may last.
• Access personalised digital advice, including recommendations on contributions and investments for eligible members.
• Access Lifetime Boost, which may improve future Age Pension outcomes for eligible members who later choose AMP Lifetime Retirement Income.
• Manage retirement income payments, including viewing payment schedules, adjusting eligible pension payments and submitting withdrawal requests.

These features sit alongside everyday account management functionality where members can track their super performance, view their personal rate of return, manage investments and insurance, while accessing the latest market updates from experts, including AMP’s Chief Economist, Dr Shane Oliver.

The launch is the latest milestone in AMP Super’s retirement strategy and comes as the fund has received an Epic Retirement TICK, recognising the strength of its retirement products, advice, services and digital capabilities.

The AMP Super app is available through the Apple App Store and Google Play, alongside AMP’s new super and pension web portal.

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Richard Millington

AMP has appointed Richard Millington as Director, Employer & Adviser Partnerships, a newly created role that reflects the growing importance of employers and advisers in helping Australians build financial security and achieve better retirement outcomes.

He will join AMP on 24 August 2026 from Rest, where he most recently helped establish their workplace superannuation capability. He has also held senior roles at MLC and Munich Re, and brings extensive experience across distribution and client relationship management.

The new role will provide dedicated leadership across AMP’s Business Development, Account Management and Adviser Partnerships teams, bringing together AMP Super’s employer and adviser engagement capabilities.

AMP Group Executive, Superannuation & Investments, Melinda Howes, said the appointment reinforced AMP’s commitment to supporting employers, advisers and their clients.

“No other fund offers a member proposition like AMP Super across investment performance, service, personalised advice, and lifetime income retirement solutions. Bringing these teams together under one leader will help us work even more closely with employers and advisers as they support Australians to maximise their retirement income,” Ms Howes said.

“Richard has built a strong reputation for developing high-performing teams to deliver growth in a range of different businesses across superannuation and insurance. His experience will be invaluable as we continue to strengthen the support, service and solutions we provide to employers, advisers and members.”

Richard Millington said he was excited to join AMP at an important time for the business.

“I’ve long admired AMP for its history in Australian financial services, particularly in corporate super,” he said.

“AMP Super offers a compelling proposition for members, employers and advisers. I’m looking forward to working closely with our partners to help more Australians prepare for and navigate retirement with confidence.”

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Anna Shelley

AMP Super has delivered top quartile returns of more than 11% for the majority of its MySuper members for the financial year ending 30 June 2026.

Members invested in AMP’s default MySuper 1970s and 1990s Lifestage investments received returns of 11.3%, while those in AMP’s default MySuper 1980s saw returns of 11.2%.

Around 80% of MySuper members (all default members born in 1970 or later) are invested in these options, with the

1970s option the largest by assets under management.
For those members wanting access to a higher growth allocation, AMP’s Future Directions High Growth choice option delivered returns of 12.1%.

This marks the third year in a row that AMP Super has delivered returns in excess of 11% for its members and follows the launch of a market-first retirement package by AMP^[1] in May that allows more Australians to confidently convert their superannuation balances into lifetime income.

As of the latest data at 31 May 2026, AMP’s key MySuper default options were all top quartile across 1, 3, and 5 year periods.

Resilience and cost control key to strong performance

The portfolios have benefited from the structural momentum behind AI-themed exposures and have shown resilience through the March sell-off and ongoing geopolitical uncertainty, while maintaining a deliberate Lifestage approach to strategic asset allocation.

Key contributors to the strong returns this year include an overweight to emerging market equities, particularly South Korean shares, a rigorous focus on cost control and AMP’s Dynamic Asset Allocation overlay.

AMP Super was recently awarded the Best Fund for Digital Advice at the 2026 Chant West Awards and was recognised as Best for Value and Best for Flexibility for the second year running in WeMoney’s Superannuation Awards 2026.

Anna Shelley, AMP’s Chief Investment Officer said: “We’re thrilled to have closed out the financial year by delivering strong returns of more than 11% for the majority of our members.

“Markets rewarded patience and discipline this year, with positioning for resilient global earnings and the structural momentum behind AI driving strong returns for our members.

“The March sell-off was a reminder that geopolitical shocks can move markets quickly, but as super fund managers it’s important we stay focused on the long-term drivers of returns and the strength of diversified portfolios.

“We are pleased to see that discipline pay off for members, with our overweight positions in international and emerging markets making a meaningful contribution.

“We remain focused on actively managing portfolios for members with discipline and maintaining diversification while looking for value-accretive opportunities amid increasing geopolitical uncertainty.”

Melinda Howes, Group Executive, Superannuation & Investments, AMP said: “These returns are another fantastic outcome for AMP Super members and will make a meaningful difference, delivering higher balances at retirement.
“We recognise that great investment returns are only part of the solution and a big focus of our team is to ensure that our members can turn that balance into maximum retirement income. We don’t just provide leading services and support to help members understand and engage with their super, but personalised advice and new income solutions to let them maximise their income in retirement.

“During the year, we launched a range of solutions that continue to make a real difference to members at every touchpoint – including a new online super comparison tool, digital financial advice on both super and retirement, and our market-first Lifetime Retirement Income offering that is a game-changer in helping more Australians retire with confidence.”

AMP’s MySuper Lifestages approach

Part of AMP’s Lifestage MySuper offerings, the 1970s option is the largest option by funds under management.
AMP’s MySuper Lifestage options automatically adjust asset allocations based on a member’s age, gradually shifting from higher growth to more defensive investments as retirement approaches.

This approach is designed to reduce risk later in life while still capturing growth in earlier years — and has continued to support positive outcomes across all age cohorts.

Meanwhile, AMP’s Future Directions fund is a multi-manager choice option that benefits from AMP’s dynamic asset allocation program, an approach which aims to achieve growth with smoother returns by negotiating the ups and downs of the market.

———-
Notes:
[1] https://www.amp.com.au/about-amp/news/2026/may/AMP-launches-new-solution-to-boost-retirees–income-and-fund-their-home-care- 

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Melinda Howes

New findings from AMP’s Retirement Confidence Pulse reveal a sharp divide in how financially confident Australians feel about life after work, with women significantly more worried and less likely to seek help than men.

Headline results released earlier this year showed only 41% of women are financially confident about retirement, compared with 59% of men. The latest findings confirm women report higher levels of worry across every measure:

• 73% of women are worried about having enough super for retirement, compared to 56% of men.
•  71% of women fear they won’t be able to afford their desired retirement lifestyle, compared to 53% of men.
• 51% of women hold back on day‑to‑day spending for fear of running out of money in
  retirement, compared to 42% of men.

Despite these concerns 66% of women say it’s important to leave a financial legacy for future generations, compared to 57% of men.

Knowledge and engagement gap weighs on confidence

While lower super balances, driven by pay gaps and time out of the workforce, clearly impact confidence, the research also points to lower knowledge and engagement among women:

• Only 34% of women understand or understood the concept of compounding returns before age 40, compared to 61% of men.
• 55% of women are confident in Australia’s superannuation system, compared to 71% of men.
• 26% of women have sought financial advice for retirement, compared to 34% of men.
• 30% of women don’t know who their super is with or don’t engage with their provider, compared to 23% of men.

Divorce or separation increases worry for women more than men

Across all ages, just 36% of single women feel financially confident about retirement, compared to 45% of single men. For separated or divorced women in their 40s only 21% are confident about retirement versus 50% of men in that same situation. For single women with kids in their 40s the number drops to 19%, compared to 40% for men. This shows how relationship breakdown and caring responsibilities is compounding the gender confidence divide, particularly in the 40s – the sandwich generation’ age group.

Australia’s gender financial literacy gap

The findings align with a report by AMP’s Deputy Chief Economist, Diana Mousina on financial literacy citing research that shows Australia’s gender gap in financial literacy is larger than in peer countries such as the US, Germany, and the UK. The report also notes a statistically significant relationship between financial literacy and retirement savings.

Melinda Howes, AMP’s Group Executive, Superannuation and Investments, said: “We cannot accept a future where Australian women remain more worried than men about their financial futures.

“Our research shows women are more anxious on every measure, and it’s no surprise given they retire with smaller super balances after years of pay gaps, part-time work and time out caring for others.

“Structural change is happening, from stronger pay-equity policies to reforms that help boost women’s super – but it’s not enough on its own.

“Women can take back control by engaging with their super, knowing their fund, checking their balance and investment options, and feeling confident to ask for help. These are areas where women still lag men, an unfortunate hangover from a bygone era where men typically managed the finances.

“The good news is help has never been more accessible. Many super funds, including AMP, now offer digital and phone-based financial advice at no extra cost.

“We encourage any woman who feels uncertain to start by contacting her fund, exploring the support available and building knowledge. With the right information and a few simple steps, they can take control and feel more confident.”

Diana Mousina, AMP’s Deputy Chief Economist, said: “The retirement confidence gap we’re seeing among women is the predictable result of a longrunning financial literacy gap.

“More than one in three Australian adults are financially illiterate and, worryingly, women
consistently score lower than men – with Australia’s gender literacy gap larger than in many comparable countries.

“That lack of knowledge is clearly contributing to a lack financial confidence in the future.

“The encouraging part is that literacy is fixable – through better education in schools, workplace programs and the support super funds can provide.

“Every time we help a woman understand concepts like compound interest, risk and diversification, we’re giving her the tools to build wealth, independence and real confidence.

Four practical steps women can take now

1. Get to know your super: Log in to your account, check your balance, fees and investment option, and make sure your super is all in one place. Knowing where you stand is the first step to feeling in control.
2. Ask for help – early: Many super funds now offer digital financial advice and phone-based advice no additional cost. Talking to your fund or a licensed financial adviser early – especially before major decisions like career breaks or downsizing – can make a big difference over time.
3. Empower your future self where you can: Even small, regular extra contributions – such as salary sacrificing, super splitting with your spouse or diverting a pay rise into super – can add up significantly thanks to compounding over time. Building a plan around these contributions can help turn worry into a sense of progress.
4. Get a boost for your balance: Visit the ATO’s website to learn more about the range of polices in place to help you boost your super, including super paid on Government Paid Parental Leave, Government co‑contributions, Low Income Superannuation Tax Offsets (LISTO), spouse contribution tax offsets, spouse contribution splitting, and downsizer contributions for those 55+.

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Melinda Howes

AMP has unveiled the next phase of its digital financial advice solution, with three new retirement sub-journeys and a retirement planner that put members in control.

The latest series of enhancements mean members can now assess and then execute their contributions and investment strategies all from one place, as well as access a super projection to see what changes they should make to help reach their retirement goals.

For the first time, members can explore how selling their home could help grow their super with downsizer strategy support, as well as tax-efficient recontribution advice, helping reduce tax for beneficiaries and increase tax-free retirement savings.

Retirement projections now include actual insurance premiums for a more accurate picture, with clear retirement forecasts allowing members to not only see what their income is looking like in retirement, but also how long it will last – including the benefits of switching on AMP’s Lifetime Boost feature and Age Pension estimates.

Personalised digital experiences driving member engagement

Over 17,500 Retirement Health Check journeys have been completed since January, with over 20,000 members engaging with AMP’s digital financial advice service since its launch.

This marks a 33-fold increase on the total number of members getting guidance on their retirement planning since last year, according to the latest AMP figures[1].

The three new additions available as standalone journeys are:

• Super Projection: See your potential retirement income and how Lifetime Boost can benefit you (if eligible), what Government Age Pension you might get and whether you’re on track to reach your retirement goals
• Contributions Strategy: Make every dollar count for your future by choosing the right contributions to help your super grow as much as possible
• Investment Strategy: Discover the investment options that best match your preferences and see what switching could mean to your retirement income.

The newly-enhanced solution is available through ‘My AMP today’ via either the online portal or app, providing members with flexible access to view their super balance, switch investment options, or make extra contributions.Members can also opt into Lifetime Boost or speak to a qualified human adviser if they need some extra guidance or have more complex needs.

Melinda Howes, AMP Group Executive Superannuation & Investments said: “At AMP, we’re passionate about giving our members greater control and financial confidence to help them retire with higher income.

“We don’t just rely on automation and algorithms – we think about how people actually feel and behave when making financial decisions. That means going beyond general advice or one-size-fits-all retirement calculators, with advice and education tailored to each member.

“We’ve seen an incredible uplift in the numbers of members engaging with our service and we’ve made some great strides forward with a market-first digital financial advice solution that makes financial advice easier to access and understand for all our members.

“The best part is it’s all available 24/7, at no extra cost, for eligible members.

But while this uplift in use is encouraging, we know that too many Australians have no idea their super fund provides this advice. “Our goal is to raise awareness of these solutions and help more Australians make smart choices, feel supported, and retire with more.

“We’re thrilled to be leading the way with new standards and helping our members take action, reduce financial stress, and feel more confident about their retirement.”

Michelle Lusty, Bravura Solutions Head of Midwinter Advice Products said: “We’re witnessing a transformational shift in how Australians access retirement planning advice.

“By collaborating with forward-thinking funds like AMP, we’re helping millions of Australians to engage advice in a way that suits their individual needs, ultimately improving their retirement outcomes while strengthening trust in the system.”

———-

Notes:
[1] Based on 525 Retirement Health Checks completed in 2024 (Source: AMP data)

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Melinda Howes

AMP has unveiled major enhancements to its digital advice solution, giving members 24/7 access to personalised investment and contribution advice, alongside Lifetime retirement projections^[1] — all available via My AMP with no extra fees.

This latest enhancement empowers members to make confident, well-informed decisions about their superannuation. Members already received a ‘Retirement Income Score’ showing retirement readiness, and now they can also see how they can improve that score if they opt in to the industry-first AMP Super Lifetime feature.

New modules offer personal advice to select the right investment option and optimise their contributions. Members get a Statement of Advice (SOA) and access to phone-based adviser support to help them understand their options and take action.

The move comes in response to growing demand for retirement guidance, with over 12,000 members engaging with AMP’s digital advice service since its launch on 30 January this year.

Over 14,000 Retirement Health Check journeys have been initiated since then and more than 6,700 members have completed a Retirement Health Check journey, which includes a retirement income projection, Age Pension insights, and the ability to set income goals. That is nearly a 13-fold increase in total members getting guidance on their retirement planning last year, according to the latest AMP figures^[2].

The advice journey also features the “Ways to Improve” tool, giving members the ability to explore and test different financial strategies to improve their retirement outcomes.

Lifetime integration

AMP’s digital advice offering now also includes Lifetime – offering super fund members education about the new feature and a personalised projection showing how much better off they will be in retirement after opting in to it.

All members who complete a Retirement Health Check receive a ‘Retirement Income Score’ and a SOA, outlining step by step the actions they can take to improve their score such as maximising their super now and in retirement.

The solution is available 24/7 through My AMP via either the online portal or app, providing members with flexible access to view their super balance, switch investment options, make extra contributions, opt into Lifetime and speak to a qualified adviser.

Melinda Howes, AMP Group Executive Superannuation & Investments said: “At AMP, we’re passionate about giving our members greater control and financial confidence to help them retire with higher income.

“Last year, we had over 500 members complete a Retirement Health Check with us across the 12 months. That’s now grown more than tenfold since the launch of our market-first digital advice solution in January.

“We’ve also seen more than 14,000 Retirement Health Check journeys initiated within just five months of launching which has been really exciting, and over 450 intra-fund adviser appointments completed since the start of the year.

“Thanks to AMP’s market-first digital advice solution, our members are getting simple and high quality retirement advice for no extra fees.

“We’re taking a market leading position in digital advice and member services, empowering more Australians to achieve the lifestyle they want in retirement.

“Later this year, we’re planning to enhance our digital advice solution to include personal advice about insurance, transition-to-retirement and innovative retirement strategies.

“Our members can access high quality advice for no extra fees, and a human adviser is just a click of button away if they need some extra guidance.”

———

Notes:
[1] https://www.amp.com.au/superannuation/super-lifetime
[2] Based on 525 Retirement Health Checks completed in 2024 and 6742 in 2025 (Source: AMP data, as at 4 July 2025)

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Melinda Howes

AMP has announced the designed to help millions of Australians unlock more income in retirement – without changing how their super is invested and without additional fees.

By utilising Centrelink concession rules, the feature reduces the amount of super counted in the age pension assets test – potentially increasing entitlements and retirement income by more than $100,000 in the first 10 years of retirement. The younger Australians take advantage of the feature, the greater the potential income uplift in their retirement.

AMP Super Lifetime’s transformative income generating qualities were recognised this week with the Chant West’s Innovation Award, building on the success of AMP’s multi-award-winning MyNorth Lifetime income solution.

Melinda Howes, AMP’s Group Executive, Superannuation & Investments, said that AMP Super Lifetime is a smart and efficient way for members to get more out of their superannuation.

“This is a breakthrough innovation for the superannuation industry and, most importantly, our members – a simple, no-cost feature that can significantly increase retirement income and improve access to the Age Pension. It’s designed to quietly work in the background, using Government rules to unlock more income when it matters most.

“This is another important step in AMP’s commitment to helping more Australians retire with confidence. With AMP Super Lifetime, we’re giving our members the opportunity to make their super work harder without lifting a finger – no changes to how their money is invested and no added fees.”

• Once activated, AMP Super Lifetime runs automatically in the background of a member’s super account, creating a ‘concessional’ balance. Members incur no additional fees, and the member’s actual super balance is unaffected.
• This ‘concessional’ balance uses the deeming rate as its growth rate, instead of the actual return of the super fund. This deeming rate is currently 2.25% and is set by the Government.
• Over time, this is expected to create a ‘concessional’ balance that is lower than the member’s actual super balance. This ‘concessional’ balance is referred to by the Government as the Purchase Price.
• At retirement, the member can choose to move some of their super into an AMP Lifetime Pension account, designed to provide income for life and to work alongside the AMP Super Allocated Pension.
• When Centrelink assesses the member’s eligibility for the age pension, it uses the lower ‘concessional’ balance for the portion invested in the AMP Lifetime Pension, instead of the member’s actual super balance. This may help the member qualify for more Age Pension, boosting their income in retirement.
• With increased certainty and financial confidence, many retirees may in turn choose to draw a higher income from their AMP Allocated Pension, further boosting income and improving quality of life in their earlier active retirement years.

Ben Hillier, AMP’s Director of Retirement, said: “For many Australians, AMP Lifetime Super could mean tens of thousands of dollars in extra retirement income compared to traditional account-based pension. It’s a highly effective and simple way to improve quality of life in retirement.”

AMP Super Lifetime is initially available to members under the age of 58 and who have not met a full condition of release in their account. Eligible AMP Super Choice members have had the feature automatically added to their account, while eligible MySuper members have the option to add the feature.

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Melinda Howes

AMP has announced the launch of a new digital advice solution, providing AMP Super members with simple, intuitive and secure retirement advice, with no extra fees.

The digital Retirement Health Check provides members with an online advice journey to find out when they can access super, how much is enough to retire and an estimate of their income in retirement.

In a market first, members can personalise their desired retirement income goal and then compare it with other key benchmarks including the age pension and ASFA’s Retirement Standards. Members also receive a Retirement Income Score and My Retirement Report, and through the solution can model different scenarios and strategies to improve their score.

If members wish, qualified advisers are on hand at no extra fees to discuss their results and help them take the next best step with their super and retirement planning. If advice requirements are more complex, a pathway to more comprehensive advice is also available.

Flexible access

Members can access the digital advice solution securely through My AMP online, from the comfort of their own home, at any time. The solution will also be available through the My AMP app in the coming weeks. Through My AMP members can also view their superannuation balance, switch investment options and manage insurance.

More to come

Developed in partnership with leading software provider, Bravura Solutions, the Retirement Health Check is the first of a range of digital advice journeys AMP Super is set to launch for members in the coming months. These solutions will cover pre-retirement and post-retirement strategies, including investment choice, super contributions, insurance and pension management.

Melinda Howes, AMP Group Executive Superannuation & Investments said: “We’ve drawn on AMP’s deep understanding of financial advice to create an intuitive, personalised digital experience for our super members.

“The Retirement Health Check – the first of our new advice journeys to come to market – recognises that Australians need help navigating a retirement system they often find daunting and overly complex.

“The solution aims to cut through this complexity and provide simple guidance and advice to help our members maximise the retirement income they generate from the super savings they’ve worked hard to build.

“We want to give our members greater control and financial confidence in retirement, and help them unlock a better quality of life.”

Paul Dunn, CEO APAC, Bravura Solutions said: “AMP’s Retirement Health Check is an outstanding example of how leading super funds are stepping up to better support their members achieve their retirement outcomes using digital advice solutions. Using Bravura’s Midwinter technology, this collaboration means AMP members have an easy-to-use digital advice solution to empower them on their superannuation journey.”

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Melinda Howes

AMP research reveals that 4 in 5 Australians aged 65 and over don’t feel prepared for the transition to aged care, while 7 in 10 worry about the cost of care.

The majority of older Australians would prefer to avoid aged care and remain living in the family home, with 3 in 5 saying they would prefer to age in the family home and half preferring to receive care in the home. Further, 3 in 4 expect aged care to diminish their wealth and children’s inheritance, while almost 1 in 3 worry about the burden of aged care cost on their children.

This research shows the challenges faced by the growing number of Australians heading into retirement. Retirees lack the financial confidence to spend in retirement and are living more frugally than they need to, with Treasury’s Retirement Income Review revealing many older Australians are passing away with the bulk of wealth they had at retirement intact^[1].

AMP’s research follows the federal government’s introduction of the new Aged Care Act into Parliament in September, aimed at supporting growing numbers of older Australians choosing to retain their independence and remain in their homes as they age.

Other key findings include:

• 7 in 10 are against moving into a residential aged care facility
• 1 in 2 don’t know what government assistance is available to them for aged care
• Over 8 in 10 are confident their children will make the right decisions on their behalf about aged care, if needed.

The findings are indicative of the questions financial advisers are most often asked from their clients about aged care, including:

• What will it cost to move into an aged care facility and can I afford it?
• I have minimal assets besides the family home. Do I still need to pay the accommodation costs of moving into a residential aged care facility?
• Should I retain the family home (and rent it), or sell it and use the proceeds to pay for the aged care accommodation payment?
• What are the implications of each option for my social security entitlements?
• How do I minimise my aged care fees while optimising my social security entitlement?

Previous Government findings have also shown that older Australians find the aged care system difficult to access and navigate^[2]. By 2035, a total of 1.4 million Australians are expected to stay in their homes as they age2 while the number of Australians aged 85 years and over is projected to increase from 515,700 in 2018-19 to more than 1.5 million by 2058^[3].

AMP Group Executive, Super and Investments, Melinda Howes said: “These insights bring to light the financial worry and lack of understanding many older Australians have about aged care, including its cost, how they will fund it, and how it interacts with the pension system.

“The Government’s Aged Care reforms are an important step towards helping support the growing number of older Australians choosing to retain their independence, and the financial services industry also needs to do more. It’s critical we continue to work with government and regulators to help take these aged care financial worries off the table for retirees, and allow them, with their families, to focus on physical and emotional wellbeing during this often-challenging phase of life.

“This begins with building financial confidence during the transition into retirement, giving older Australians greater choice and optionality when they reach this critical life stage. That means instilling a peace of mind that their savings and income will last, and understanding the available options for receiving care. This would not only provide comfort in the knowledge that they can remain financially independent as they age, but unlock a better quality of life in the early and active years of retirement.

“More affordable and accessible financial advice is central to building this confidence, and in helping demystify the nuances and complexities of our retirement system, including how the aged care system interacts with the pension and family home.

“The onus is also on the financial services industry to develop new and innovative retirement solutions which provide greater lifetime income certainty and make it easier to downsize or unlock equity from what is most Australians’ largest financial asset – the family home.”

AMP Director of Retirement, Ben Hillier said: “Australia is leading the way in development of new solutions that maximise and provide assurance on lifetime income for retirees. But as this research highlights, our industry must continue to innovate to provide Australian retirees with the financial confidence they’ve worked their lives to achieve.

“That means removing any financial concerns older Australians may have about aged care and providing confidence that they’ll be able to fund the cost of care if needed. This can be achieved through lifetime income solutions that will help more Australians look forward to a better standard of living and a higher rate of ongoing income in retirement.

“It also includes better access to financial advice, improved financial literacy at all ages, and a simplified retirement system. Relocating to an aged care facility, gifting and inheritance are all areas where an adviser can make a meaningful difference to more Australians in and near retirement.”

Six tips to help manage the transition to aged care

1) Early planning: The sooner you start planning for the possibility of aged care and factor it into long-term retirement outcomes the smoother the transition will be.

2) Speak with your family: Discuss the possibility of aged care with your loved ones and likely carers before the need to enter a care facility to help you make an informed decision.

3) Access Government resources: The Government’s My Aged Care website provides valuable information to help support the transition. ASIC’s MoneySmart is also a great resource for help you organise and plan for retirement.

4) Speak to your superannuation provider: They can offer resources which help with your retirement knowledge, including a free retirement health check or intra-fund advice. Having greater control of your finances can give you the confidence that you can afford the cost of your care.

5) Know what charges to expect: some typical costs of moving into an aged care facility include a daily fee for the day-to-day services such as meals and laundry, payments towards your accommodation and an extra fee determined by a means assessment.

6) Increase eligibility for assistance: Eligibility for government assistance in paying aged care costs is means tested, so you can reduce your costs by reducing your assessable assets and income through strategies such as utilising a lifetime income stream.

About the findings

AMP commissioned Dynata in February 2024 to conduct a survey of 2000 Australians aged 50 years and over and under 40 years in relation to their attitudes to retirement, aged care and intergenerational wealth transferral.

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Notes:
[1] Source: Retirement Income Review. Australian Government Treasury, July 2020 .
[2] Source: Once in a generation aged care reforms. The Hon Anika Wells MP. 12 September 2024. . By 2035, a total of 1.4 million Australians are expected to stay in their homes as they age2 while the number of Australians aged 85 years and over is projected to increase from 515,700 in 2018-19 to more than 1.5 million by 20583
[3] Source: Care, Dignity and Respect: Royal Commission into Aged Care Quality and Safety .

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