The evolving landscape of retirement in Australia

For most of us, retirement is not a front-of-mind concern as we progress through our careers. Instead, we’re focused on the immediate future—an upcoming project, the next step up the career ladder, or our next holiday.

It’s an unfortunate reality for most that retirement feels distant and intangible until it’s imminent. It’s human nature to prioritise the here and now, and often it’s not until we’re much closer to retiring that the importance of planning for it - and the complexities involved - become apparent.

However, as the age profile of Australians shifts, the need for adequate early planning is becoming ever more acute. By 2050, the number of Australians over the age of 65 will more than double, with nearly one-in-four in their retirement years.

Retirement is also lasting longer. By 2050, the number of people aged 85 and older will quadruple, from 0.4 million today to 1.8 million. The prospect of enjoying more years of retirement sounds perfect, but from a financial perspective it requires us to fund our lifestyles, our healthcare, and our aged care needs for decades, rather than years.

Relationship breakdown poses a great threat to a good retirement. Around 30 per cent of marriages end in divorce, with the median divorce age being 45.9 years for males and 43 years for females; an age where retirement is fast approaching and planning is critical.

When retirement is finally achieved, it’s about much more than just a bank balance.

Many retirees find that when they finally leave the workforce, it’s not just their income that changes—there’s often an emotional and psychological shift. The end of a career can feel like losing a part of their identity. After decades of structure, purpose, and social interaction, the freedom of retirement can feel unsettling.

This is compounded by health challenges that often emerge later in life, as well as the issues of loneliness and how to fill one’s day meaningfully.

These demographic shifts mean superannuation funds must be prepared to support a growing number of retirees, before and during retirement.

It’s why after 100 years, Commonwealth Superannuation Corporation has recently evolved our offering to become Australia’s first true retirement partner for federal public servants and members of the Australian Defence Force.

At CSC, we don’t just want to just help members manage their finances—our goal is to become a partner in their retirement journey, walking alongside them before and during retirement to ensure they live well, beyond the financial figures.

While we manage the financial aspects of retirement, we envision a future where we partner with experts in health, wellbeing, and social connection to offer our members a complete package of support. By doing this, we ensure that no part of a member’s retirement journey is left unattended.