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 on Jan 31^st, 2026 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 on Jan 31^st, 2026 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 on Jan 31^st, 2026 at 8:15pm:


Indeed.

Don't waste your life following silly societal norms.

Greens announce plan to lower retirement age and lift pension above poverty line
2025-04-26
greens.org.au
The Greens have today announced a plan to lower the retirement age and lift the age pension above the poverty line, allowing Australians to retire earlier on a liveable income.

Greens leader Adam Bandt announced the plan in the party’s target seat of Richmond in northern NSW, along with Social Services spokesperson Senator Penny Allman-Payne and Greens candidate for Richmond Mandy Nolan.

By lowering the pension age from 67 to 65, recipients who benefit would on average receive $18,000 more a year. This includes those moving from JobSeeker to the Age Pension.

There are currently 54,295 JobSeeker recipients who are aged over 65. Since 2017 the proportion of people older than 65 receiving JobSeeker, DSP or the Carer Payment has doubled.

The commitment will largely benefit older women who are more likely than men to face the prospect of poverty in old age. The majority of JobSeeker recipients aged over 65 are women.

The pension rate was raised from 65 to 67 by the Rudd Labor government in 2009, with the Greens opposing the decision at the time.

Comments attributable to Leader of the Australian Greens, Adam Bandt MP:

“In a wealthy country like ours, no one should retire into poverty. The Greens will fight for the right to retire earlier at 65, with an income that will actually pay the bills and support older Australians to enjoy the retirement they deserve.

“There is a poverty crisis among older Australians and it's worse for older women, who are one of the fastest growing groups facing homelessness.

"One in three big corporations pay no tax, while thousands of older Australians are struggling to get by. By making billionaires and big corporations pay their fair share of tax, older Australians can retire earlier with a liveable income.

"In a minority Parliament, the Greens will keep Dutton out and restore respect and dignity in ageing by getting Labor to return the pension age to 65, and raise the pension rate above the poverty line.”

Comments attributable to Greens spokesperson on Social Services and Government Services, Senator Penny Allman-Payne:

“Thousands of older people are in physically demanding, minimum wage jobs or accessing the much lower JobSeeker rate because successive Labor and Liberal governments have failed to give them the support they need.

“Older people deserve better from their government. The Greens will return the pension age to 65 and lift the pension above the poverty line, providing a well-deserved earlier retirement with liveable income support.”

Daves2017 wrote on Jan 31^st, 2026 at 8:42pm:




yes like a robot -

you are just so preprogrammed from your youth.

I never existed to be a slave of a corporation.

Daves2017 wrote on Jan 31^st, 2026 at 8:42pm:


How boring a life you have.

Why would you put yourself through physical distress beyond 67?????

Surely you have ample super?

Are you single?

What about the nuclear subs, that we still haven't got.  Who is going to pay for that?.    

Daves2017 wrote on Feb 1^st, 2026 at 9:47am:



sounds perfect to me Daves, well done

whiteknight wrote on Feb 1^st, 2026 at 9:36am:



People will work till they are 80 to pay for it.

Daves2017 wrote on Feb 1^st, 2026 at 11:04am:


Either you're young or on a second go round with a younger woman. 

The 8 yr olds in my life are my grandson & grandaughter.

aquascoot wrote Yesterday at 1:21pm:



Dear Aqua,
many blessings.

I couldn't be bothered doing most of those things -
the older I get the less excited I am about such activities -
examples:
- going fishing -
it's so much easier to just buy a piece of fish.

Riding motor bikes?
my reaction times are not as fast as when I was young -
my back couldn't take the bumps -
all too dangerous.

I don't have a fat wife to take to Maccas - luckily
and I wouldn't eat their poisonous food anyway.

Pokies - I go to the Pokies about once every 3 or 4 years -
it's so boring and everyone looks unhappy as they have lost their arses.

I don't have Netflix - boring and expensive -
when there are free sports on TV in full HD I will watch it.
tennis was great in the last 3 days.  it was FREE.

Beaches, national parks, mountains?
all for the young at heart -
I've been there - done all that and survived great risks.


BTW - I like having an aircon and a comfortable place of my own to live -
I deserve it after a lifetime of hard work
and putting up with sh!t in the workplace from morons running it.

aquascoot wrote Yesterday at 3:56pm:



Sure - but there are always things to do:
cleaning, repairing things, renovating, internet sites to visit,
friends to talk to -
the days still go quickly without worrying about a fishing boat etc.

aquascoot wrote Yesterday at 1:21pm: