Half of Australian Adults Have Never Sought Retirement Advice

Why It Matters

The advice gap and low financial literacy threaten the sustainability of Australia’s massive pension pool as 2.5 million people approach retirement, potentially increasing reliance on the age pension. Prompting regulatory reforms could improve outcomes and reduce future fiscal pressure.

Key Takeaways

• Only 50% of Australian adults have accessed retirement advice.
• Licensed advisers fell 40% over the past decade.
• Two‑thirds lack basic understanding of superannuation system.
• Younger adults 10× more likely to seek advice on social media.
• ASFA urges reforms to let super funds deliver targeted advice.

Pulse Analysis

The Association of Superannuation Funds of Australia (ASFA) released a stark portrait of retirement preparedness: just 50 percent of adults have ever consulted a source of retirement information. Even more striking, younger Australians are ten times more inclined than those over 65 to look for guidance on platforms such as Instagram or TikTok, despite surveys ranking social media as the least‑trusted channel for financial advice. This generational shift reflects both the digital habits of millennials and Gen‑Z and a widening trust gap that leaves many retirees vulnerable to misinformation.

The survey also highlights a structural erosion in the advice market: the number of licensed financial advisers has fallen by 40 percent over the last decade, shrinking the pool of professionals who can navigate Australia’s A$4.4 trillion ($3 trillion) superannuation system. Two‑thirds of respondents admit they understand little about how super contributions translate into retirement income, a knowledge gap that fuels anxiety about outliving savings. With roughly 2.5 million Australians slated to retire in the next ten years, the combination of adviser scarcity and low financial literacy threatens the long‑term viability of the nation’s pension framework.

ASFA’s response is to push the government’s next wave of financial‑advice reforms, which would permit pension funds to deliver targeted, low‑cost guidance directly to members. Such a change could close the advice gap, lower the cost of obtaining professional input, and improve confidence among retirees who are currently “sleepwalking” into retirement. Internationally, countries that embed advice within retirement accounts—such as the United Kingdom’s auto‑enrollment model—have seen higher savings rates and reduced reliance on state pensions. If Australia adopts a similar approach, it could safeguard its $3 trillion retirement pool while easing future fiscal pressure.