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Rethinking Retirement: What Australians Need to Know

Jason Featherby stresses early planning and advice as key to achieving a secure, debt-free, and comfortable retirement.

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Published on

September 18, 2025
Lifestyle

By: Bec Harris

With rising financial pressures, Jason Featherby, Head of Financial Advice at Leeuwin Wealth, gives advice on the importance of early planning and financial guidance to help Australians achieve a secure and comfortable retirement.

What Is the Biggest Concern for Retirees?

Rising cost of living is the top concern:

  • The rising cost of living is the number one worry for retirees.
  • Just 64% of retirees feel comfortable in retirement, down from 71%.
  • Over 75% say their pension primarily covers essentials like groceries and utilities.

Are Australians Confident About a Comfortable Retirement?

Many are uncertain:

  • 54% of pre-retirees don’t believe they’ll achieve a comfortable retirement.
  • This rises to 57% for those aged 50 and over.
  • However, 7 in 10 retirees report being able to enjoy a comfortable retirement with their savings.

How Common Is Debt in Retirement?

Debt is surprisingly common:

  • Almost one in four retirees use their pension to pay off debt.
  • Average debt: $100,000 for retirees aged 65–74; $20,000 for those 75 and older.
  • Mortgage debt among older Australians has tripled in the last two decades, with many still servicing home loans in retirement.

Does Financial Advice Make a Difference?

Yes, significantly:

  • 85% of Australians who receive financial advice say they’re on track to meet retirement goals.
  • Only 47% of those without advice feel the same.
  • Advised retirees are twice as likely to retire on their own terms and timeline.

What Defines a ‘Comfortable’ Retirement and What Does It Cost?

According to the ASFA Retirement Standard (March 2025), a comfortable retirement includes regular leisure, travel, dining out, private health cover, and the ability to maintain a car and home.

Annual costs for a comfortable lifestyle (homeowners aged 65–84):

  • Single: $52,383
  • Couple: $73,875

Superannuation lump sum needed at retirement (age 67):

  • Single: $595,000
  • Couple: $690,000

This standard assumes retirees own their home and receive a part Age Pension.

Article supplied with thanks to Sonshine.

Feature image: Canva