Introduction
Retirement in Australia today looks remarkably different from what it was 25 years ago when I first started as a Financial Adviser.
This change reflects shifts in economic conditions, family dynamics, and social attitudes. From travel aspirations to financial responsibilities toward children and grandchildren, Australian retirees now expect a lifestyle that is more dynamic and supportive than ever before.
I felt compelled to write this because it has become an increasingly common theme in my discussions with clients. The reality is that my clients now have much higher financial expectations for their retirement years compared to what my clients expected 25 years ago. In fact, even the concept of "retirement" itself is evolving. Many of my clients today anticipate continuing to work in some capacity well into their later years, but that’s a topic for another time!
Travel and Leisure: A Broader Outlook
One of the biggest changes I’ve noticed is the desire for travel. A generation ago, my clients often had more modest travel plans, usually focused on exploring Australia or nearby countries. Today, however, the goal is often to travel abroad, whether it be to Europe, Asia, or other far-off destinations. Improved health and increased financial stability have made global travel a priority for many retirees.
I’ve also seen the rise of the "grey nomad" phenomenon among my clients, with many investing in caravans or motorhomes to explore Australia's vast landscapes. Travel is now seen as an essential part of retirement life rather than an occasional luxury.
Supporting the Next Generations: A Financial Shift
It used to be quite rare for retirees to provide significant financial support to their adult children. Now, however, it has become almost an expectation among many of my clients. With the challenges of housing affordability and higher living costs, many retirees plan to offer ongoing financial assistance to their children and even grandchildren.
This support goes beyond direct cash contributions. Some retirees are now considering multigenerational living arrangements, helping their families navigate the high costs of housing. This indicates a growing desire among retirees to play a more active and supportive role in their children's and grandchildren's lives than was common in the past.
Entertainment and Lifestyle: Beyond Relaxation
Another major shift I’ve observed is in expectations around leisure and entertainment. Earlier in my career, my clients’ aspirations were often simpler: tending their veggie gardens or enjoying the occasional camping trip. For many, an overseas holiday was a once-in-a-lifetime achievement.
Today, my clients have a much broader expectation of what their retirement lifestyle will include. Modern retirees are tech-savvy, engaging with streaming services, social media, and even online courses. There’s a growing desire for lifelong learning and personal development, with retirees actively participating in various classes and activities.
Health and fitness have also become a central part of their lives. Many of my clients now plan for an active lifestyle that includes regular fitness classes, yoga, or other wellness activities. The focus is not just on living longer, but on living healthier and more active lives.
Housing: Downsizing or “Ageing in Place”
Back in the 1990s, most of my clients expected to either stay in their home (how many times have I heard “they’ll carry me out of my home in a box!”), maybe downsize to a smaller home or move into a retirement village when they stopped working. This topic is nebulous, depending on the financial resources (and age) of the client. While downsizing is still common, there’s also a clear trend toward "ageing in place." Many retirees express a strong preference to stay in their current homes for as long as possible and adapt them to meet their evolving needs over time.
With the availability of in-home care services and advances in smart home technology, this option is becoming increasingly feasible. Retirees are now planning for homes that accommodate their lifestyle changes, with modifications such as stairlifts, widened doorways, and accessible bathrooms. There is a greater emphasis on maintaining independence and comfort in their own homes, a sentiment which seemed less pronounced among retirees 25 years ago. That is, 25 years ago, retirees either seemed to move to a retirement (rather than “lifestyle”) village, or got carried out of their home “in a box”.
Conclusion
The shifts in lifestyle expectations for Australian retirees reflect broader changes in society, economy, and technology. Today’s retirees are more adventurous, more involved in their families’ lives, and more focused on health and independence. As these trends continue, retirement in Australia will likely continue to evolve, offering an even more diverse and fulfilling lifestyle for future generations.
What all of this tells me is that there is a far greater need to accumulate significant financial resources to meet these lifestyle expectations during the "retirement years."
Planning and preparing for this evolving retirement landscape is more crucial than ever.