Nearly two in every five Australians fear they will not be able to retire, as housing prices and day-to-day costs grind higher, new data shows.
Roughly 38 per cent of Australian superannuation members have that worry, up from 28 per cent in 2024, while two in three Aussies expect to work longer than planned, according to a study by MFS Investment Management.
Housing costs have overtaken day-to-day living expenses as people's top financial worry, followed closely by purchasing power being eroded by high or rising inflation.
And fewer than half of retirees are confident their asset base will provide enough cash flow throughout their golden years, the survey of 700 Australian retirement plan members and more than 300 retirees across Australia, Canada, the US and the UK found.
In response, one in three super members have adjusted their retirement investments in the past year, up from one in four in 2024.
"It’s encouraging to see conviction improve among members and retirees," MFS senior managing director and head of Australia and New Zealand Josh Barton said.
"Yet our study shows that most Australians remain unsure about their journey and that, despite higher mandated and incentivised contributions, cost-of-living pressures continue to weigh heavily on members."
The typical single homeowner will need about $322,000 in superannuation for a comfortable retirement, while couples with a home will need a combined $423,000, according to Super Consumers Australia projections.
While these projections were less than many might expect, worries about the future were still common, the group's deputy chief executive Katrina Ellis said.
"People find retirement planning very complex and very uncertain," Dr Ellis told AAP.
"So I'm not surprised that people aren't confident because it really is quite confusing to know how much super you need."
She encouraged people to make a budget, get familiar with their super balance and make their own retirement target using tools such as MoneySmart's Retirement Planner.
From this vantage point, they can make adjustments, including salary sacrifice or post-tax contributions, or check the impact of a career break on their retirement income.
Retired homeowners could also tap into the value of their home, through the federal government-backed Home Equity Access Scheme, which is often forgotten over private sector backed schemes.
"Some people might run the numbers and see that they're pretty on target, while others might feel like they need to boost their super in order to have the retirement income that they want," Dr Ellis said.
The consumer advocacy group is also calling for individual super funds to provide similar platforms to help people plan for their golden years.
"Some super funds are good at helping you understand and make decisions for your retirement, while some leave a lot to be desired,” Dr Ellis said.
It's also important to recognise the role of the age pension in supplementing retirement incomes, which - despite concerns the safety net will not always be around - looks likely to stay.
"The federal government has done its future projections with the intergenerational report - the age pension is affordable in Australia and it's not going away," Dr Ellis said.
"If you're eligible for it, go for it. It's yours - you've earned it."
Super Consumers Australia will release its comfortable retirement projections for renters next week.
