- Published on 09 Dec 2025
- - What is Financial Planning?, Self Managed Superannuation, Superannuation
Starting Early Makes a Real Difference
Australians who begin planning for retirement early in life are far more likely to enjoy a comfortable lifestyle later on. Recent research shows that people who start preparing before age 40 are almost twice as likely to feel financially secure in retirement compared to those who delay. The message is clear: time is one of the most powerful tools in building long-term wealth.
Those who plan early give themselves more opportunities to grow their savings, manage debt, and make informed investment choices. Even small improvements each year can have a meaningful impact over decades.
The Cost of Leaving It Too Late
The research found a sharp decline in confidence among people who delay retirement planning. Less than half of those who begin planning after age 60 feel comfortable in retirement. For those who never plan at all, the outlook is even more concerning.
Late starters often face greater pressure to save quickly while managing lower working income or health challenges. This can limit flexibility and add unnecessary stress during what should be an enjoyable phase of life.
Prepared Retirees Build Stronger Savings
People who feel well-prepared for retirement typically begin arranging their finances several years earlier than those who feel unprepared. They also tend to hold significantly higher balances in their superannuation (retirement savings). This gives them greater confidence in meeting everyday living costs and lifestyle goals.
In contrast, those who feel unprepared usually start planning much later and often have far lower savings. The gap between the two groups shows how powerful early action can be.
Confidence Is Improving — But Still Low
While overall confidence about retirement has improved slightly in the past year, many Australians still feel uncertain about their future. Fewer than four in ten people currently feel “retirement ready.” This is well below levels seen just a few years ago.
One of the major issues is a lack of understanding around how retirement income works. Many people are unsure how their savings convert into long-term income once they stop working.
Understanding Income Options Boosts Satisfaction
Interestingly, satisfaction rises sharply among retirees who actively use retirement income products. These are tools designed to turn superannuation savings into ongoing payments. Most people who use these options report strong satisfaction and greater peace of mind.
This highlights the value of getting clear advice and understanding the income choices available. Knowledge often leads to better decisions and stronger outcomes.
The Key Message: Start Now, not “Someday”
The main takeaway from this research is simple — the earlier you plan, the more control and comfort you are likely to enjoy later. Starting young allows small contributions to compound into meaningful wealth over time. Even those who are closer to retirement can still benefit from taking action today.
With the right strategy, it is never too late to improve your financial position.
Why not take the next step and talk to a qualified and highly experienced financial planner today?
LifeTime Financial Group are specialist (holding appropriate accreditations) financial planners who are ideally positioned to work with you in planning and managing you and your family's intergenerational wealth needs.
If you would like to discuss your current position or wider financial planning needs, why not call us today on 03 9596-7733? There is no cost or obligation for our initial conversation/meeting.
LifeTime Financial Group. A leading privately owned Melbourne-based Financial Planning practice with no ties to any financial institution.