Australians struggling to navigate retirement's super and Age Pension divide 

Many Australians rely on both superannuation and the Age Pension to fund their retirement, yet new research commissioned by Rest¹ shows many are unsure how to navigate the system, with nearly half (43%) of members saying they don’t know what steps they need to take to prepare for life after work.

The research also found strong support for making retirement easier to manage, with 61% of members backing greater integration between super funds and Centrelink to help simplify access to the Age Pension.

The scale of the challenge is significant. Government data shows 2.7 million Australians aged 65 and over rely on the Age Pension. This includes around two-thirds on the full-rate pension and one-third on a part pension. ^² With almost 1 in 3 Age Pensioners delaying their application by more than a year^³, the findings point to the need for a retirement system that is easier for people to understand and navigate.

Rest Chief Executive Officer, Vicki Doyle, said the findings show a growing disconnect in Australia's retirement system.

"Superannuation and the Age Pension are meant to work together, but too often people are left trying to bridge the gap between them.

"When people don't know what steps to take as they approach retirement, it's a warning sign that the two biggest parts of Australia's retirement system aren't working together as seamlessly as they should.”

Members aged 46 to 66 were the most likely to describe the retirement system as complex, suggesting confusion peaks just when people need clarity most. Ms Doyle said this points to a broader system design issue.

"If Australians find the retirement system hardest to navigate at the point they need it most, that's not simply a consumer education issue – it's a system design issue.

"People shouldn't have to become experts in superannuation, the Age Pension and Centrelink just to plan for retirement.

“Australians need a retirement system that feels like one connected experience, with simpler pathways and better integration between the services they rely on most.”

The research also found women were significantly more likely than men to feel unsure about how to prepare for retirement, and more likely to find retirement products difficult to understand.

Members who rent were among the least prepared groups, with almost two in three saying they were unclear about how to prepare for retirement, compared with around one in three homeowners.

Increasingly, Australians are expected to retire while renting rather than owning their home outright^⁴. Higher housing costs can leave renters more reliant on both superannuation and the Age Pension, while older women remain particularly vulnerable to housing insecurity and homelessness.

"Our retirement system must work for everyone, regardless of gender, housing situation or financial confidence. The system needs to do more of the heavy lifting, otherwise we risk leaving many Australians behind,” Ms Doyle said.

"As more Australians retire while renting and rely on both super and the Age Pension, making the system simpler and more connected becomes critically important.”

The findings align with Rest's 2026-27 Pre-Budget Submission which calls for a simpler and more connected retirement system, including better integration between superannuation and the Age Pension, alongside improved information sharing between government agencies and super funds.

This is also consistent with a recent Australian Labor Party national platform motion to explore secure data sharing between government agencies and super funds to support more personalised retirement advice.

Rest has called for urgent progress on the Delivering Better Financial Outcomes advice reforms, which would give super funds greater scope to provide practical guidance and support as members approach and enter retirement.

Rest has also invested in digital tools to help members prepare for retirement, including its Rest Retire Ready digital experience, which connects older members with tailored guidance, education and support.