New research reveals four retirement mindsets and why confidence can matter as much as financial resources.

Retirement is often talked about as though it is a single life stage. Work ends, income changes and life settles into a new routine. But new research from the Institute for Lifetime Income suggests retirement is far more diverse than that. Australians are experiencing retirement in different ways, influenced not only by their financial resources, but also by their confidence, mindset and expectations for the future.

Research involving more than 1,000 Australians aged 60 to 80, identified four retirement mindsets. These reflect different ways people approach spending, saving and the future. The findings offer a useful reminder that there is no single "right" way to retire, and that retirement experiences can vary significantly from person to person.

Key takeaways

• Retirement is not a one-size-fits-all experience.
• Researchers identified four distinct retirement personas.
• Confidence can play an important role in how retirement is experienced, alongside financial resources.
• Spending patterns often change after retirement and may continue to evolve over time.
• Many retirees report feeling more confident once they have made the transition into retirement. 

Retirement is about more than money

One of the most important insights from the research is that retirement outcomes are influenced by more than wealth alone.

While financial resources play an important role, confidence often shapes how retirement is experienced. Some retirees feel comfortable spending and enjoying the lifestyle they have worked hard to achieve. Others remain cautious about future costs or the possibility of running out of money, even when their financial position is relatively strong.

The research identified four retirement personas.

1. The Carefree retiree

You may recognise yourself as a Carefree retiree if you see retirement as a time of freedom and opportunity.

People in this group are more likely to prioritise travel, family experiences and making the most of their retirement years. Around 28% of retirees fit into this category and they generally report the highest levels of confidence about their financial future.

2. The Content retiree

Content retirees have also adapted well to retirement, but in a different way.

These retirees are typically spending less than they did while working, because they are enjoying a simpler lifestyle in retirement. They have discovered that happiness does not necessarily require higher spending and are comfortable with a slower pace of life. Around one in five retirees fall into this group.

3. The Cautious retiree

Cautious retirees remain careful with spending because they are uncertain about what the future may bring.

They often worry about unexpected costs, market fluctuations or the possibility of living longer than anticipated. While some are financially comfortable, uncertainty can cause them to hold back on spending today in order to preserve financial security for tomorrow. Approximately 14% of retirees fit this profile.

4. The Concerned retiree

Concerned retirees, face more significant financial pressure.

These retirees are cutting back not out of preference, but out of necessity. Rising living costs, fears about future expenses and concerns that their savings may not last create genuine financial stress. Although they represent a smaller segment of retirees, their experiences highlight the importance of having access to support, information and guidance throughout retirement. Just under 10% of retirees fall into this group.  

Retirement spending can change over time

One of the findings from the research is that retirement spending patterns are not fixed.

Almost 80% of retirees report changing the way they spend money after leaving the workforce. Some spend more as they embrace the opportunities retirement offers, while others spend less because their needs naturally decline or because uncertainty encourages greater caution. Importantly, spending behaviours can evolve over time as circumstances, health and priorities change.

This highlights an important reality of retirement: your needs today may not be the same as your needs in five, ten or twenty years' time.

Why do people approaching retirement worry more?

If you're nearing retirement and feeling uncertain, you're not alone.

The research found a significant confidence gap between retirees and those yet to retire. While most retirees report confidence that they can afford their desired lifestyle, people approaching retirement tend to be more concerned about running out of money, covering healthcare costs and managing future living expenses. Many are also unsure how their spending habits may change once they stop working.

Encouragingly, retirees generally report feeling more confident than pre-retirees. Experience appears to help people adjust their expectations and develop a better understanding of what retirement actually looks like. The research also suggests that confidence is not solely linked to wealth. Access to advice, education and guidance can play an important role in helping people make informed decisions and feel more comfortable using their savings in retirement.

There is no single path to a successful retirement

Perhaps the most important finding from the research is that retirement continues to evolve after work ends.

Spending patterns, priorities and concerns often change throughout retirement. Whether the challenge is creating reliable income, managing market uncertainty, preparing for future care needs or simply feeling confident enough to enjoy retirement, many Australians continue to adapt as circumstances change.

Ultimately, the report suggests that retirement success should not be measured solely by how much someone has accumulated. Savings provide the means to retire, but confidence can play an important role in helping people enjoy the retirement they have worked hard to achieve. Understanding your own retirement mindset may help you make more informed decisions and feel more confident about the years ahead. 

Source: Four Ways Australians Navigate Retirement, Institute for Lifetime Income, August 2026.

1. This research report (the Report) has been prepared by Challenger Group Services Pty Ltd (Challenger) and Susan Bell Research for the sole purpose of providing general information to assist understanding of the factors that contribute to happiness amongst retirement aged Australians as at 13 August 2026. Challenger Life Company Limited ABN 44 072 486 938, AFSL 234670 is the issuer of lifetime annuities.  

2. The Report is provided strictly for information purposes only, and is not intended to constitute advice, regulatory interpretation, or a complete analysis of the subject matter contained therein. The research findings are based on aggregated survey responses and should not be interpreted as predicting outcomes for any individual retiree or household. The report does not recommend any financial product, strategy or course of action. This report contains general information only and is not personal financial advice and do not take into account your objectives, financial situation or needs. Consider whether the information is appropriate for your circumstances.  

3. No representation or warranty, express or implied, is made as to the accuracy, completeness or reliability of any information contained in this Report. To the maximum extent permitted by law, Challenger and Susan Bell Research, and their respective directors, officers, employees, agents, and advisers accept no responsibility or liability whatsoever (whether arising in contract, tort (including negligence), equity, statute, or otherwise) for any loss, damage, cost, or expense suffered or incurred by any person in connection with the use of, or reliance on, the Report or any information contained within it.  

4. The recipient is solely responsible for undertaking its own independent investigations, performing its own analysis, and obtaining independent professional advice (including financial, legal, tax, and accounting advice) prior to making any decision based on or in connection with the Report. 

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