Retirees confidence in finances takes a hit

Retirement confidence among Australians aged 65 and over has fallen, even as it held steady across the broader population, according to figures cited by Homesafe Wealth Release. The decline in confidence among over-65s was from 65 per cent to 61 per cent, making them the only age group to record a decline.

AMP’s 2026 Retirement Confidence Pulse put overall confidence at 52 per cent. The research found 58 per cent of Australians worried about running out of money in retirement, while 47 per cent identified the cost of living as the greatest threat to their retirement security.

Among over-65s who worried their money would run out, 22 per cent felt financially confident. That compared with 93 per cent of those who did not share the concern, a difference AMP described as a “Certainty Gap”.

Homesafe chief executive and managing director, Dianne Shepherd, said the findings highlighted the importance of how secure retirees felt about their income, but argued that housing wealth was missing from the discussion. Shepherd noted that retirement confidence is not really about how much people have saved, but about whether they believe it will last.

The 2020 Retirement Income Review found that the family home was an underutilised source to support living standards in retirement. Roughly three in four households headed by someone over 65 own their home outright, making it the single biggest asset most retirees have.

Retirees could draw on different sources of financial certainty, including guaranteed income streams, the Age Pension and some of the value held in their homes. Homesafe’s own arrangement allows a homeowner to receive a payment in exchange for a share of their home’s future sale proceeds.

Shepherd explained that homeowners could remain in the property and were required to obtain independent legal advice before signing. It may be right for some households and not for others, and being clear about that choice is the basis of trust in this market, Shepherd added.

They noted that homeowners have options to access their housing wealth, which can provide financial certainty in retirement.