Institute for Lifetime Income

Challenge of the age: how to sustain income for longer lives?

1 in 3

Australians will live past 90

30 years

Average retirement duration today

40%

Underestimate how long they'll live

250,000 people

Retiring every year

Research supported by Challenger Limited · All data sourced from ABS, ASFA, and Mercer CFA Global Pension Index

THE CHALLENGE

Australians are living longer lives, but how we make income last for a longer time hasn't kept up.

Australia has one of the best accumulation systems in the world, but most Australians have no plan for turning their savings into income that lasts a lifetime and are unaware of the significant risks they are exposed to.

Longevity risk

The risk of outliving your savings. A 65-year-old Australian woman has a 50% chance of living past 88 - far beyond what most financial plans assume.

Sequencing risk

Poor investment returns in the early years of retirement can permanently reduce how long savings can last for, even if markets recover.

Inflation risk

Even modest inflation erodes purchasing power significantly over a 25-30 year retirement. Fixed income needs inflation protection built in.

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“The question isn’t how much
you’ve saved. It’s how long it will last.”

INSTITUTE FOR LIFETIME INCOME

Four ways Australians navigate retirement

August 2026

In partnership with Susan Bell Research, this research report set out to better understand the psychology behind retirement decisions and outcomes. The research identifies four distinct retirement personas and explores how mindset shapes people's sense of choice, control and satisfaction throughout retirement.

Designing retirement income options for members

September 2026

Australia has built a world-class savings system but converting that wealth into income that lasts a lifetime remains the harder, underserved question. This discussion paper sets out what super funds need to know to meet the Retirement Income Covenant and genuinely improve member outcomes.

2026 Happiness Retirement Index

April 2026

Demand for financial security in retirement is growing, with only half of Australians aged 60+ feeling financially secure. The latest Challenger Retirement Happiness Index explores what confidence really means in retirement.

RESEARCH & INSIGHTS

Original research on retirement income in Australia

Spending in retirement

The ultimate purpose of super is to provide money for a member to spend through their retirement. Good investment and product design can help maximise the retirement income for a member, but to best meet the goals of retired members, an understanding of spending in retirement is also required.

Read the report

Understanding life expectancies

It is a fact of life that nobody knows exactly how long they will live. Of more concern is that most people don’t know how long they are expected to live on average either. Given that Australian seniors are responsible for financing their own retirements, this is a significant financial literacy issue.

Read the report

Super is delivering for people about to retire

As our superannuation system heads towards full maturity, whether the system is truly, delivering for Australian retirees has become one of the most fiercely debated topics of our time. There are almost daily news headlines, and ongoing discussion at industry and government level on this issue.

Read the report

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ABOUT OUR EXPERTS

The minds behind the research

Our research is produced by Challenger's leading retirement income specialists - economists, strategists, and technical experts with decades of combined experience shaping Australia's retirement landscape.

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ABOUT THE INSTITUTE

Why the Institute for Lifetime Income exists

The Institute for Lifetime Income is a research body dedicated to providing financial and longevity literacy focused on lifetime income, retirement plan design and lifelong financial well-being.

Established by Challenger Limited - Australia's largest retirement income provider - the Institute publishes research, data, and practical guidance on income in retirement. Our work is designed to inform pre-retirees, retirees, financial advisers, and policymakers navigating one of the most consequential financial decisions a person will ever make.

Australia has one of the world's great superannuation systems. But accumulating wealth is only half the challenge. The harder question - how to convert that wealth into income that lasts a lifetime - remains underserved. Too many Australians enter retirement without a plan for longevity risk, sequencing risk, or the steady erosion of inflation. The Institute exists to close that gap.

Our evidence-based research draws on Challenger's deep expertise in retirement income, annuity markets, and the regulatory landscape governing superannuation.

Research supported by Challenger Limited

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Original research

We publish research on retirement income adequacy, longevity risk, and guaranteed income products – filling gaps in the national evidence base.

Public education

We provide plain-language guidance for Australians approaching retirement, helping them understand their options before making life-changing decisions.

Adviser resources

We support financial advisers with technical resources, regulatory analysis, and practical frameworks for constructing retirement income strategies.

Policy contribution

We contribute to the national conversation on retirement income reform, bringing evidence to bear on the design of a system that works for all Australians.

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The minds behind the research

Mandy Mannix

Principal Advocate, Retirement

Mandy Mannix is a senior financial services leader with deep expertise in superannuation, retirement income, managed investments and customer-focused financial solutions, bringing international experience across Australia, the UK and Europe. She is a respected industry voice, recognised for her insights into retirement system design, income sustainability and the evolving needs of retirees. Mandy is an active contributor to industry forums and leadership discussions on superannuation and retirement outcomes.

Aaron Minney

Head of Retirement Income Research

Aaron Minney, CFA, F Fin is Head of Retirement Income Research at Challenger. He leads research into retirement income, decumulation, portfolio construction and longevity risk, and is a frequent contributor to industry research, media commentary and policy discussion on Australia’s retirement system. Aaron has held senior investment roles at major Australian financial institutions. He has been an Adjunct Fellow at Macquarie University since 2017 and is a Chartered Financial Analyst.

Dr Jonathan Kearns

Chief Economist & Head of Regulatory Affairs

Dr Jonathan Kearns is Chief Economist and Head of Regulatory Affairs at Challenger, where he also sits on the Investment Committee. He worked for 28 years at the Reserve Bank of Australia, occupying a wide range of senior roles, including Department Head for Domestic Markets Department, Financial Stability Department, Economic Analysis Department and Economic Research Department. He has a Ph.D. from Massachusetts Institute of Technology and Bachelor of Economics (Honours) from the Australian National University.

Andrew Lowe

Head of Technical Services

Andrew Lowe is Head of Technical Services at Challenger, where he leads specialist technical guidance across retirement income, superannuation, social security, tax and aged care. He has held senior technical roles across major Australian financial institutions including ANZ, and regularly contributes technical insights through adviser education, webinars and industry publications.

Institute for Lifetime Income

Challenge of the age: how to sustain income for longer lives?

1 in 3

Australians will live past 90

30 years

Average retirement duration today

40%

250,000 people

THE CHALLENGE