Four ways Australians navigate retirement

 

Building better outcomes for a more secure retirement

 

 

Susan bell reseatch paper

Retirement is one of life’s most significant transitions. After decades of saving, planning and working towards financial security, Australians enter retirement with the hope of enjoying the lifestyle they have worked hard to achieve. Yet retirement is not a single experience, nor is there one path that defines a successful retirement.

 

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. 

 

As featured in The Australian Financial Review. 

Carefree
For Carefree retirees, retirement is a time of freedom. A time to enjoy themselves with more time, and fewer responsibilities.

Content
Many retirees were content with a simpler lifestyle in retirement. While focused on doing what makes them happy, this cohort have discovered that happiness doesn’t have to cost a fortune.

Cautious
For some, retirement is a time to be cautious and careful. These retirees are still spending, but they are doing so wisely. While they have savings, there is still a fear of running out of money.

Concerned
For Concerned retirees, retirement is a time of constraint with real worry that their money will not last. These retirees say they have a “tight” budget and live on much less income than they used to.

Aaron bw

Aaron Minney

Head of Retirement Income Research

Read bio

“Through this research, and our efforts at the Institute for Lifetime Income, we want to understand the psychology behind retirement decisions and outcomes. These findings show us that confidence is central to exercising choice and control. 

By recognising the diversity of retirement experiences, we can help more Australians achieve the lifestyle they aspire to." 

Challenger has partnered with Susan Bell Research for this report. Susan Bell Research is a Corporate Partner of the Research Society and specialises in research on the new lives of older Australians, a demographic that’s wildly diverse, rapidly evolving and too often misunderstood. Over the last 30 years, the agency has conducted qualitative and survey research for many of Australia’s largest financial services organisations such as AMP, Australian Super and Aware Super, as well as for ASIC and the ACCC. The agency lead Susan Bell is a Fellow of the Research Society, and past Board Director.
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

 

 

 

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.