Australia ranks sixth in global retirement index

Australia climbed to sixth place in the 2026 Natixis Global Retirement Index, which evaluates 44 countries on financial security, health, and quality of life for retirees. The rise occurred even as inflation and higher living costs weighed on several key measurements within the report.

The nation’s overall score held steady at 77%, trailing Norway, Ireland, the Netherlands, Switzerland, and Denmark. Its ranking for financial security in retirement was sixth worldwide, while health outcomes placed eighth—both areas showed declines from the prior year.

Inflation pressures emerged as a significant weak point, with Australia’s inflation ranking falling five places to 36th. The concern dominated investor sentiment: 54% of Australians named inflation as their primary worry in the 2025 Natixis Global Survey of Individual Investors. Financial pressure was also reflected in investors’ longer-term outlook, with 53% of Australians saying their financial goals were becoming more fantasy than reality, compared with 38% globally.

Australia’s financial security score dipped from 73% to 72%, while its health score declined from 91% to 89%. The health decline stemmed from a drop in life expectancy, pushing Australia down eight spots to 11th, alongside rising chronic disease rates. Healthcare spending per person improved marginally to 10th, though insured health expenditure fell three places to 19th. Nearly half of Australian retirees (44%) reported healthcare costs exceeding their projections, well above the global average of 31%.

On a positive note, Australia advanced in material well-being, moving up two spots to 13th after household income inequality reached its lowest level in over a decade. Its score eased from 70% to 69% as a marginal decline in income per capita offset the improvement. Quality of life recorded Australia’s strongest score increase, rising three percentage points to 79% and lifting the country one place to 12th. A 30-percentage-point improvement in environmental factors drove much of the gain, though Australia’s happiness ranking fell four places to 14th.

A key development was the introduction of superannuation reforms, including the launch of Payday Super in July 2026. This policy mandates that employers submit retirement contributions within seven days of payday, replacing the previous quarterly system. Mandatory employer contributions have increased from 3% in 1992 to 12% today. The change is projected to benefit nearly 9 million subscribers by accelerating investment timelines and reducing unpaid contributions.

The transition from quarterly to payday contributions allows assets to be invested sooner, enhancing retirement balances through compounding effects. Before the reform, an estimated $6.2 billion in super contributions remained unpaid in 2022–23. The report cited this as an example of how automation can improve retirement outcomes, though broader financial challenges persist.

The global survey also highlighted evolving attitudes, with 78% of investors now viewing retirement funding as their own responsibility, up from 67% a decade earlier. Yet 43% of respondents, despite holding at least $100,000 in investable assets, believe achieving retirement security requires extraordinary circumstances. Natixis emphasized that retirement policies must now focus on access, automation, and ensuring adequate savings as lifespans extend and public finances face growing pressure.