Aussies delaying retirement by years as cost crisis bites   
Cost-of-living pressures have created a retirement crisis so severe that workers are abandoning plans to leave the workforce.


News.com.au
January 31, 2026

Workers are delaying their retirement by up to six years as cost-of-living pressures force a grim outcome on the national workforce.

Cost of living is still the biggest concern for workers’ retirement planning, Equip Superannuation data based on 2000 Australians’ responses has found.

Forty-three per cent of workers say the high cost of living is their biggest retirement concern, while 25 per cent point to a lack of super savings and 18 per cent flagged healthcare affordability.

Australians are working an extra six years due to cost-of-living pressures.
Only one in five Australians are feeling more optimistic about their retirement compared with this time last year.   

Equip Super chief experience officer Carrie Norman told NewsWire that older Australians were feeling the punch.

“In our research, Australians approaching their 50s or already in their 50s is where we found the greatest delay in people choosing to offset their retirement,” she said.

“Partly that came from cost-of-living pressures, especially some Australians having to reduce their super contribution (which could impact their overall super balance).”

Australians aged below 45 are more likely to feel on track to retire in their 60s.

Although Ms Norman caveats this partly due to younger people having more time to plan for their retirement.


She also points to younger Australians taking a more active role in their super.

Twenty-one per cent of respondents were forced to reduce their super contributions to make ends meet, while 10 per cent are adding to their super due to taking proactive steps to offset rising cost-of-living pressures.

Cost of living weighs on Australians

Zyft consumer finance expert Joel Gibson says rising inflation as well as an interest rate hike in February could smash households budgets.

The Australian Bureau of Statistics on Wednesday revealed the headline inflation rate was 3.8 per cent for the 12 months until December, up from 3.4 per cent in the 12 months until November.


“All of these increases combined would mean an average Australian household should stand to shell out an additional $2192 over the course of this year,” Mr Gibson said.

He points out the inflation pain is widespread, hitting power bills, rentals and mortgages.   

“These aren’t things you can avoid. The key is to focus on savings that actually move the needle. It’s not about skipping your morning $5 coffee,” Mr Gibson said.

Ms Norman says there are two realities for workers that are coming from rising inflation.

“We are seeing these immediate cost pressures with some people reducing their super contribution and therefore may be feeling that they need to work longer,” she said.   

“Then we are seeing a really strong cohort of Australians that are really focusing on their long-term financial security.

“They understand their situation and they have a plan even if they are adjusting their plans based on their circumstances. The great thing is they are not giving up and not ignoring the issue.”

Stressed-out Aussies may need less super than they think.

How much do Australians need in retirement

In terms of how much money Australians need to retire, experts differ, pointing out retirement is individual and based on personal expenses and access to the pension.

Super Consumers Australia (SCA) says surveys of retirees show most people will spend less than what experts say they need at the end of their working life.

The SCA says a typical single retiree will need $322,000 in superannuation when they retire to support spending of $44,000 per year in their post-work years, while a couple will need a combined superannuation balance of $432,000 to support spending of $64,000 per year when they leave the workforce.

The Association of Superannuation Funds of Australia estimates a single person needs $595,000 in their retirement savings account, while a couple needs $690,000.

This assumes a part pension and home ownership.

Act now

Australians who are feeling behind in their superannuation objectives are being urged to take small steps now that can have a big impact over the longer term.

whiteknight wrote Yesterday at 3:31pm:


They don't keep putting the pension age up.

Kevin Rudd put it up to 67 in 2009. They also back dated it in 6 month increments for anyone born from 1953 to 1956.

Anyone born in 1957 & beyond had to wait until they were 67.

It added a year & half to my eligibility(born1956) & 2 years for my wife (born 1957).

Phuk the Labor Party.

So many assumptions. If you plan to live to 90 from 67 that is 23 years, Super balances are not static at retirement. the income stream still has a small offsetting increase despite draw down. $450k means you should have a pension of about $20k and a government pension top up.

Australian life expectancy for males is about 81.  That makes it $25k plus top up.

Of course you can always add your own funds to super.

Bobby. wrote Yesterday at 5:31pm:


And I didn't say anything different. You lose 50c for every dollar over the limit of $218 pf or $5668, up to about $2575 pf. $25k pa equates to about $960 pf

you can retire whenever you want.

Sprintcyclist wrote Yesterday at 8:15pm:


Indeed.

Don't waste your life following silly societal norms.