Financial illiteracy drags down retirement | Australian Markets

A national survey of over 1,500 Australians aged over 60 has cited the shortage of financial schooling and sources for these approaching or already in retirement as a key obstacle to retirement happiness and confidence.

The outcomes of the second annual Challenger Retirement Happiness Index indicated that whereas 74 per cent of the 1,633 people surveyed mentioned higher financial schooling would go a long technique to bettering their happiness, 51 per cent mentioned they weren’t conscious of the sources which can be obtainable to plan for retirement and 20 per cent mentioned they weren’t sure the place to even begin.

While the overarching happiness rating delivered by the index for 2025 was 69 (just one level down from final yr), the retiree and pre-retiree cut up confirmed a totally different image; retirees had been happier with a rating of 70 this yr, in comparison with pre-retirees at 66.

Cost of dwelling pressures and their impacts on financial security had been felt by each pre-retirees (76 per cent) and all Australians surveyed over the age of 60 (72 per cent).

“Ask a happy retiree what brings them joy, and they won’t just talk about their super balance,” Challenger Chief Executive, Customer, Mandy Mannix, mentioned.

“They’ll talk about the coffee catchups, the morning walks, and the holidays they have planned to visit family or see the world. The little things make a big difference – which is why activities and purpose are so important.”

“When we asked Australians over 60 what made them happy, three things stood out: good physical health (59%), enough money to enjoy life (41%), and good mental health (38%).”

Polled Australians over the age of 60 who engaged with financial advice had been happier (74) than those that didn’t have a financial adviser (64), with girls additionally famous as fairly a weak group relating to retirement confidence. More than one-third (34 per cent) of girls aged over 60 had been extraordinarily or very nervous about operating out of financial savings, in comparison with solely 20 per cent of males in the identical age section.

Similarly, unadvised Australians had been additionally considerably more prone to be extraordinarily or very nervous about outliving their retirement financial savings (35 per cent, in comparison with 19 per cent of suggested Australians). Over 90 per cent of Australians polled with out a financial adviser additionally indicated that free, fundamental retirement schooling would help to spice up financial literacy, financial security, retirement confidence and retirement happiness.

“We know retirement can be one of the most rewarding stages of life—but confidence is key,” Mannix mentioned.

“When people really feel unsure about their funds, they have a tendency to carry back. That’s led to a power underspending drawback in retirement, with many Australians dwelling more cautiously than they need to.

“Retirees go from a regular pay cheque to a lump sum, and that sudden shift makes it onerous to price range with confidence. That’s why a assured, common income for all times is so highly effective—it replaces that pay cheque, can keep up with inflation, and offers retirees the liberty to truly dwell their best life in retirement.

“Retirement confidence isn’t just peace of mind—it’s quality of life. When people feel financially secure, they spend, plan, and live without that worry. That’s why guaranteed regular income matters, and why Challenger is committed to helping retirees feel secure for a better future.”