The CoreData Best Possible Retirement research reveals that Australians are increasingly engaged with their retirement, but confidence is fragile, their expectations are shifting, and many still lack the appropriate support to turn greater awareness into meaningful action.

Overall, the research, conducted in conjunction with Retirement Magazine publisher Conexus Financial, finds that Australians are overwhelmingly uncertain about what their retirement holds, with only 10 per cent saying they feel comfortable with their financial wellbeing “all the time”.

It says that cost-of-living pressures are reshaping retirement expectations; that there is growing demand from members for better services and support, but many do not know what their fund actually offers; and that around half of Australians still lack a good understanding of the ongoing costs of retirement.

The research identifies three big issues that funds need to focus on to address the major concerns retirees have as they approach and then enter retirement.

1. Retirement is changing: Rising costs mean more people are still working despite being retired

CoreData says that cost-of-living pressures are reshaping retirement for many Australians, reflected in the fact that one in four retirees is still working in some capacity in retirement, driven by financial reasons.

The researcher says this is more common amongst individuals who have retired within the past five years, and it shows that the traditional view of retirement as a full stop is shifting toward a more flexible, phased transition.

It suggests that funds need to reflect Australians’ changing experiences by offering flexible products and income solutions that accommodate part-time work. Messaging around retirement issues must support “a modern, evolving retirement”, make it clear that retirement can look different for everyone, and support members accordingly.

2. Funds must help members navigate longevity risk through better planning tools

The BPR research says that “making money last” is a major and growing concerns, with almost half (48 per cent) of pre-retirees and well over one-third (38 per cent) focused on the risk of outliving their accumulated savings.

“Yet, planning confidence remains low,” the research says. “Only 39 per cent say they have solutions to meet retirement needs.” To combat this issue, CoreData says funds must “develop or refine planning tools, calculators, and income projections that help members shift from saving to spending with confidence”.

3. Funds must proactively educate members on entitlements and later-life decisions

The research says many members are still unsure about making critical retirement decisions, involving issues such as government entitlements, aged care and housing.

“For example, only 17 per cent have explored retirement living options,” it says.

On the upside, members appear to recognise gaps in their own understanding, with about two-thirds (67 per cent) saying they would use Age Pension guidance if it were offered.

“The lack of clarity undermines individuals’ confidence and reinforces a preservation mindset,” the research says.

“Members aren’t just looking for information, they want proactive, personalised guidance.”

Addressing this issue requires funds to strengthen support models by identifying and addressing key areas of uncertainty, CoreData says.

“Offer early, easy-to-access guidance through calculators, retirement tools, seminars, and advice services,” the report says.

“Consistently reinforce value through service that informs, reassures and empowers better decision-making.”

The gap in awareness remains one of the biggest sources of frustration among fund members, the research shows. It said that around a third (31 per cent) who said they felt let down by their fund said they wanted to be made more aware of available retirement products and services.

CoreData says this “points to a communication and visibility issue, not necessarily product performance”.

It said a similar proportion (30 per cent) want more help navigating their retirement entitlements, making it what the researcher describes as “a top-tier service expectation, not a niche concern”.

Along with greater clarity on entitlements, members also want greater transparency and guidance on making decisions: 27 per cent want more clarity on fees and charges; and the same proportion (27 per cent) want clearer help with key retirement decisions.

“This suggests that people don’t just need more information, they need it explained and contextualised,” CoreData says.

These issues are exacerbated by the fact that proactive contact with members by their funds remains relatively rare, and one in five members (21 per cent) say they want more personalised and tailored communication. Only one in four (24 per cent) members said their fund actually proactively contacts them.

“These are missed opportunities for building trust at a critical life stage,” CoreData says.

The research underlines just what a mindset shift is required by funds, which for three decades or longer have focused on maximising after-fee returns for members as they seek to help members build up the greatest possible balances ahead of retirement.

The research says shows that when members are focused on retirement issues, “better returns” is a low priority.

“Just three per cent mentioned returns, emphasising that the experience and support model matters more once members retire,” it says.