Gap between retirement expectations and preparedness grows

Workplace wellbeing, productivity, and dynamics are being affected by worries about the future.

According to the MLC Employer Real Retirement Report, less than a third of Australians imagine they will be able to retire when they want to - reflecting a financial crisis of confidence that is slowing down the current workforce.

Of the surveyed working Australians, 65 per cent agreed that their financial situation affects their health and mental wellbeing, and 16 per cent believe it interferes with job performance.

Women and low-income earners show the highest level of anxiety meeting financial needs in retirement. At the same time, 84 per cent of employees believe employers should facilitate free or subsidised financial advice and 77 per cent value financial education or super seminars provided through work.

The findings suggest that expectations for employers are growing.

MLC Super CEO Dave Woodall said that “it’s become clear that retirement confidence doesn’t sit neatly at the end of a career, it’s built over a working life. And when confidence is missing, the effects start to surface in how people feel, engage and make decisions about work.”

“For employees, that framing matters.

“It shapes how they feel at work today, and whether they believe their employer is thinking beyond the immediate. It also speaks to the broader employee value proposition (EVP), where financial confidence plays a quieter but meaningful role alongside more visible signs of support,” Woodall added.

In this way, employers are being urged to acknowledge the impact of financial stress in the workplace and take measures to truly support employee wellbeing.

As recently reported, ELMO research showed that employee support makes a difference even in the midst of financial strain, with 75 per cent of surveyed Australian employees feeling generally positive about their employers despite ongoing cost-of-living pressures.

On these findings, organisational psychologist Dr Amantha Imber said there is enough under an employer’s control to make a difference to the individual and the organisation.

“Financial pressure rarely stays at home. It influences energy, concentration, wellbeing and ultimately performance at work. Organisations that acknowledge that reality and invest in practical support are more likely to build resilient, engaged workforces,” she said.

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