Fear of Running Out: The Retirement Confidence Crisis

Written by Christopher Hall, AdvDipFP | Authorised Representative, AFSL 526688 | December 2025

FORO – the fear of running out of money – is significantly impacting how Australians experience retirement, according to recent industry research.

The Retirement Income Review found that typical retirees die with around 90% of their starting superannuation balance intact. This creates what researchers call a "lifestyle deficit", where retirees forgo experiences and a higher standard of living despite having sufficient funds.

Research from Natixis Investment Managers shows 40% of Generation X Australians are worried about running out of money in retirement.

Confidence varies dramatically by income: only 40% of those earning under $45,000 feel confident about retirement, compared to 75% of those on $190,000 or more. Single mothers face the steepest confidence gap, with only 20% feeling secure about their retirement prospects.

Treasury's Retirement Income Review identified that 83% of accounts in the pension phase use account-based pensions that don't manage longevity risk. Many retirees rely on statutory minimum drawdown rates as a default strategy to avoid depleting their savings.

Association of Superannuation Funds of Australia research indicates only 51% of Australians have consulted any information source about preparing for retirement, suggesting widespread disengagement with retirement planning.

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About the Author

Christopher Hall, AdvDipFP, is the principal financial adviser at Arrow Equities and an Authorised Representative under AFSL 526688. He has completed more than 500 life insurance policy reviews for Australian families, with a specialisation in life risk insurance.

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