Shaun Bransdon

What I Wish I Knew About Retirement reveals opportunity for super funds to meet demand for income certainty and help more Australians retire with confidence

The second edition of TAL’s What I Wish I Knew About Retirement found a third of pre-retirees have taken no action to prepare for retirement and one in five don’t know what they’ll do with their super. This is despite two thirds reporting they are engaged or highly engaged with their finances.

The research, comparing the attitudes, experiences and behaviours of 2,000 pre-retirees and retirees aged 55 and older, shows an increased focus on financial certainty among pre-retirees compared with when the research was first conducted in 2024. When asked to nominate the most important features of a retirement product, two thirds list ‘an income that lasts a lifetime’ and ‘income keeping pace with inflation’ among features they value most.

Shaun Bransdon, General Manager, Retirement and Wealth at TAL said the findings show a disconnect between people’s financial engagement and taking action on retirement planning, with more seeking financial certainty.

“People care deeply about their financial futures and they’re paying attention – but we don’t see that in the actions they’re taking to plan for this critical life stage. Many feel they don’t have all the information they need.”

“Super funds are stepping into this opportunity, building on the trust developed with members over their working lives: 64% of pre-retirees say they trust their fund to advise on retirement needs. Options like guided settings, information on how different retirement income options work together with the Age Pension, and tools that help them make decisions that suit their circumstances, could help more Australians approach retirement with confidence.”

Preparing for retirement, and the unexpected

This year’s research shows that cost of living pressures are impacting retirement planning, with just 29% of pre-retirees saying they have money left over for regular saving or investing.  Almost half expect to have less spending power in retirement. The proportion of pre-retirees planning to work past age 70 has also jumped from 27% in 2024 to 36%.

While 33% of pre-retirees expect their retirement to last longer than 20 years, almost half expect their super to run out before then. Nearly half of retirees surveyed (48%) had taken no meaningful action to prepare for retirement, up from 39% in 2024. Among retirees who did plan for retirement, only a quarter started preparing before their 50s, with over one-third not taking action until their 60s or later.

This is significant because retirement often arrives earlier than expected – 61% of current retirees left the workforce before 65. Only 15% of pre-retirees expect to retire before 65.

That gap between expectation and reality can have lasting consequences, said Mr Bransdon.

“If you’re planning to work until 67 but have to leave at 62, you’ve lost five years of contributions at peak earning capacity. For many, that’s significant.”

Product choice and certainty shape retirement satisfaction

The research reveals significant differences in satisfaction based on what a person did with their super on retirement.

Around 90% of retirees who chose pension accounts or lifetime income products were satisfied with their decision. This compared with 81% who left their super in accumulation and 66% who withdrew lump sums.

Yet just 38% of pre-retirees are familiar with how these products work and 87% would want to find out more if their fund offered a lifetime income product. Among current retirees, 66% say they would have been interested if such products had been clearly offered when they retired.

Among retirees now in their 80s, one in five wish they’d spent more in their early retirement years. If retirees started running out of money, 40% say they would reduce spending and 34% say they would rely on the Age Pension, which for many household types sits below ASFA’s modest retirement standard.

“Retirement income strategies work best when flexibility is combined with certainty. And our research shows this is increasingly important to people. Account-based pensions provide growth potential and capital access for active years, while lifetime income streams support spending confidence and can reduce Age Pension reliance.”

“Without certainty about future income, even retirees with adequate savings may default to conservative spending. Product design can help – giving people confidence to enjoy their retirement while knowing their essential needs are covered,” Mr Bransdon said.

Read the full report, What I Wish I Knew About Retirement: Second Edition.

About the research

The second round of TAL’s What I Wish I Knew About Retirement research was an online quantitative study of 2,000 Australians aged 55 or over, comprising 873 pre-retirees and 1,127 retirees, who provided self-reported answers to survey questions. The first round was conducted in 2024; the second completed in 2026 by TAL’s research partner Edentify.

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Shaun Bransdon

TAL actuaries specialising in retirement have done a deep dive into Australian life expectancy data – uncovering the truth about 5 commonly held life expectancy myths (“the age my parents or grandparents died is a good predictor of how long I’ll live”, etc.) Their analysis of “longevity risk” can help superannuation funds, banks, and financial advisers provide the right guidance, products and support so Australians can plan for their future.

Helping Australians retire with confidence

Shaun Bransdon, Head of Retirement & Wealth at TAL, said financial stress is one of the main concerns among older Australians.

“Retirement should feel secure, not stressful. But many older Australians are worried about their financial future.”

“TAL research shows that more than 1 in 3 Australians (38%) aged 55 or over are unsure they’ll have enough savings for a comfortable retirement. Among those who have already retired, a top concern is that their super might not last as long as they do.”

“Part of the challenge? It’s hard to know how long retirement will last. TAL research shows that nearly half of pre-retirees underestimate how long they’re likely to live. At the same time, a third of current retirees now expect to live longer than they originally thought.”

“When Australians gain a clearer understanding of their life expectancy, they can make more confident and balanced decisions, not just for the early years of retirement, but for the long haul.”

“With 2.5 million Australians set to retire in the next decade, advisers have a key role helping clients feel prepared and in control. We have developed a short guide, ‘How long does retirement last?’, highlighting the key myths that lead clients to underestimate how long they will live and to support advisers discuss with clients why planning for a longer retirement is important.”

“ Lifetime income solutions can also help clients feel confident and in control in retirement, they offer a steady income stream for life, protecting against the risk of outliving savings. They help smooth income over time, even if clients draw more in their early, more active years.”

“These solutions work alongside account-based pensions and the Age Pension to help manage cash flow and create peace of mind. Importantly, they’re flexible. Features like spouse protection, withdrawal options and death benefits mean they can be tailored to meet an individual’s needs.”

Life expectancy myths and realities

Our analysis uncovered the following about five commonly held myths around life expectancy.

Myth 1: ‘Life expectancy from birth’ statistics are relevant for older Australians

The reality: As we get older, our life expectancy increases. This is because life expectancy statistics consider all the deaths likely to occur from infancy, childhood and throughout adulthood, skewing the average downward. So, while children born today have an average life expectancy of 81 for boys and 85 for girls, this will increase as they move through life.

For today’s 65-year-olds, this equates to average life expectancies of 85 years for men and 88 for women. Moreover, as this group moves through retirement, they’ll continue to benefit from improved living standards, medical advancements and healthcare improvements. Based on recent trends, this is likely to further increase their average life expectancy to age 88 for men and 90 for women.

Myth 2: I only need my retirement savings to last until my life expectancy

The reality: Life expectancy statistics are based on averages. In any cohort, some people will die sooner and others will live much longer. When we factor in expected lifestyle improvements, the probability of a 65-year-old today living beyond age 95 is 20% for men and 29% for women. So, planning only for the average life expectancy could leave retirees financially vulnerable in their later years.

Myth 3: Planning for retirement as a couple simply means calculating each partner’s life expectancy

The reality: Many couples assume they’ll live until roughly the same age. But for today’s 65-year-old couples, there’s a 24% chance that one partner will survive the other by at least 15 years. Couples need to plan for the longer-living partner, to ensure their savings will last the distance.

Myth 4: The age my parents or grandparents died is a good predictor of how long I’ll live

The reality: While genetics do play a role, family history doesn’t necessarily predict the future. For 65-year-olds in the 1960s, the average life expectancy was age 78 for men and 81 for women. Two generations later – when we factor in the lifestyle improvements mentioned above – these averages have increased by around 9 years for both sexes.

Myth 5: I’m fairly typical, so the population statistics are relevant for me

The reality: Statistical averages don’t help us define the ‘average’ Australian. We all have unique health and lifestyle characteristics that influence our life expectancy. Socio-economic factors – like our income, occupation and even where we live – can create a disparity. For today’s 65-year-olds, this gap is around three or four years between the most and least disadvantaged.

With 2.5 million Australians expected to retire within the next decade, it’s imperative they’re well-equipped for the realities of life after work. Data like this can help make conversations about planning for the long term easier. It can help super funds and financial advisers confidently navigate these discussions with members, leading to more informed decisions and better retirement outcomes.

The post “How long will my retirement last?” Longevity insights appeared first on AdviserVoice.