A new report finds the number of Australians who feel prepared for retirement has plunged in the past year and is now at its lowest level in a decade.
The number of pre-retirees who feel prepared for retirement is now 28 per cent, compared to 38 per cent in 2025, according to Brighter Super's annual Retirement Outlook Index.
Retirees living comfortably also fell from 58 per cent last year to 38 per cent in 2026, while confidence they have enough money to fund retirement fell from 60 per cent to 41 per cent.
The share of retirees covering just the basics or struggling more than doubled from 14 to 30 per cent.
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A majority of both pre-retirees and retirees feel the cost of living is to blame, with three quarters of retirees reporting that inflation and cost of living were among the biggest influences on their financial position.
Julian Cappe, head of research at Investment Trends, said more pre-retirees are planning to cut spending in retirement to close the gap, rather than planning to save more.
"After 17 years of tracking how Australians approach retirement, this year's results show financial pressure reaching people at every stage, from those still working to those already retired," he said.
The report found people who sought financial advice were more likely to make extra contributions and to be less anxious about their prospects.
However, these factors could also correlate with higher incomes, underscoring unequal access to professional help.
"Advice is expensive, so lower advice fees is certainly an area where many heading into retirement would be looking to their super fund to be able to provide them with," Cappe said.
The amount that Australians need to retire comfortably is rising, according to figures released by the Association of Superannuation Funds of Australia (ASFA), the peak body for the super industry, in September.
A couple who own their home and are seeking a comfortable retirement will need $78,998 a year, or $1,513 a week. A single homeowner will need $56,166 a year, or $1,076 a week.
For homeowners aged 65 to 84, the budget for a comfortable retirement rose 0.5 per cent for couples and 0.4 per cent for singles in the June quarter.
ASFA CEO Mary Delanhunty said the rising cost of living is affecting retirees more due to the categories of goods they are spending their money on, including electricity, car costs, medical services, insurance and meals out.
"Retirees are among the groups hit hardest by the cost of living crisis because their budgets are weighted towards the things going up in price the most," Delahunty said.
Australian Taxation Office data shows the median super balance for those aged 60 to 64 is just over $200,000 — meaning retirees rely heavily on fund advice, tax strategies and government pension integration to stretch their savings.
— With reporting by the Australian Associated Press
