7 February 2025
Feeling confident in, or as you approach, retirement is about more than money. An AustralianSuper-Monash University study* found maintaining good health and setting specific goals were more important to Australians over 50 than the amount of their savings. The study was aimed at improving retirement outcomes for all Australians. It was the first of its kind to examine how people thought and felt about finishing their working life.
When planning for retirement, your financial position is only one piece of the puzzle.
The AustralianSuper Monash University Retirement Confidence Index (RCI) considered 4 key areas that affected a person’s confidence:
- Financial awareness and skills
- Health and wellbeing
- Social factors
- Retirement awareness and planning
The AustralianSuper Monash University Retirement Confidence Index (RCI)
The RCI, which started in 2017, surveyed approximately 3,000 Australians. The first study of its kind, it attempted to gain an in-depth understanding of how Australians thought, felt and behaved as they approached or experienced retirement.
Insights from the study aimed to help improve retirement outcomes for Australians planning for or experiencing retirement.
DISCOVER YOUR RETIREMENT CONFIDENCE SCORE
The 4 factors of retirement confidence
Financial awareness and skills
This looked at a person’s level of financial literacy, attitude, behaviour, control and financial anxiety.
On average, women scored significantly lower than men for financial literacy.
The survey found financial literacy was linked to cognitive ability, higher income, home ownership, having more assets than debts, and being financially risk averse.
While women had lower financial literacy and higher financial anxiety, the survey found they were more likely to save for the future. This was also true of retirees, more educated respondents, homeowners and those in a de facto relationship or married.
Health and wellbeing
This measured the importance of physical and mental health.
When asked how confident they felt about retirement, respondents with excellent physical health had a higher level of retirement confidence than those with poor health.
When it came to mental health, women fared better than men.
Being married or in a de facto relationship, having dependent children, owning your own home and having a university degree also saw an improvement in mental health.
Social factors
This examined the impact of social connections.
Confidence in retirement isn’t only about saving enough money. Respondents who felt connected with families, friends and the wider community were more confident about their retirement.
The survey found women and those who were married or in a de facto relationship were more socially connected.
The research also indicated that migrants were more likely to be missing quality connections.
Retirement awareness and planning
This looked at how certain a person feels about the future, and their behaviour in terms of setting goals.
Participants who set clear and specific goals scored much higher than those who didn’t.
Those with a formal education showed higher levels of goal setting, as did homeowners – they also had fewer uncertainties about the future. So did people who were married or in a de facto relationship, retirees and those with a higher income.
They also had fewer uncertainties about the future, as did people who were married or in a de facto relationship, retirees and those with a higher income.
Migrants were less likely to plan for retirement, however, they had similar levels of financial literacy and mental and physical health as Australians – and a similar overall level of confidence.
READ MORE ABOUT: ACHIEVING CONFIDENCE IN RETIREMENT
The power of retirement planning
Over the past 5 years, the survey had shown an improvement in financial literacy as participants approach retirement. This suggests pre-retirees have developed skills and knowledge to better manage their money.
The results also show a significant improvement in financial anxiety during retirement.
*Source: The 2022 AustralianSuper Monash University Retirement Confidence Index. Based on answers from approximately 3,000 people aged 50 and over. Retirement scores are compared to the Australian average, estimated from the key socio-demographic variables captured in the study.
This may include general financial advice which doesn’t take into account your personal objectives, financial situation or needs. Before making a decision consider if the information is right for you and read the relevant Product Disclosure Statement, available at australiansuper.com/PDS or by calling 1300 300 273. A Target Market Determination (TMD) is a document that outlines the target market a product has been designed for. Find the TMDs at australiansuper.com/TMD.
AustralianSuper Pty Ltd ABN 94 006 457 987, AFSL 233788, Trustee of AustralianSuper ABN 65 714 394 898.