Australian insurers and superannuation stakeholders are responding to growing concerns over the adequacy of retirement savings and insurance literacy.
Recent findings from MetLife Australia and Super Consumers Australia pointed to increasing financial pressure on older Australians, coupled with widespread confusion about the insurance coverage embedded in superannuation accounts.
According to MetLife, a significant proportion of Australians aged 40 to 60 are worried about their superannuation not lasting through retirement, with around 70% expressing concern and 50% lacking a defined retirement strategy.
The Association of Superannuation Funds of Australia (ASFA) has reported a rise in the amount needed for a “comfortable” retirement.
Its Retirement Standard showed that couples aged between 65 and 84 now require $73,077 annually, while singles need $51,805 – figures that have grown 1.3% in the past year
ASFA suggested that to support this level of expenditure, superannuation balances at retirement should be around $690,000 for couples and $595,000 for individuals.
MetLife’s chief insurance officer, Meray El-Khoury, said the increase in life expectancy is driving a need for income solutions that extend further into retirement.
“Australians are living longer, which means that people’s retirement savings need to stretch further,” she said.
The data also highlighted a gender divide in superannuation outcomes.
Women often retire with smaller balances – around 20% less than men – due in part to lower lifetime earnings and time taken out of the workforce for caregiving responsibilities.
Many women are left with savings that align more closely with ASFA’s “modest” retirement standard, which currently sits at $32,897 per year for singles.
MetLife is encouraging earlier and more active management of retirement funds, advocating for strategic asset allocation and the benefits of compound interest over time. The company also supports the integration of planning tools and financial advice into the superannuation experience.
Separate research conducted by Super Consumers Australia has raised questions about how well Australians understand the insurance included in their superannuation.
A May 2024 survey found that 27% of respondents were either unaware they had insurance through their super or uncertain about its details. Young adults were the least informed, particularly those under 25, who often don’t receive default insurance coverage.
Among individuals aged 25 to 29 – who are generally eligible for default cover – many did not realise they had been automatically enrolled in group policies, which typically include life, total and permanent disability (TPD), and income protection insurance.
While Australian super funds collected over $6.7 billion in group insurance premiums during FY2023–24, many members remain uninformed about the nature or adequacy of their coverage.
Meanwhile, insights from the 2025 NobleOak Life Insurance Pulse Report showed that while life insurance adoption is increasing – rising from 55% to 60% year-on-year – understanding of key terms remains low.
Just 30% of survey participants said they understood what “fully underwritten” meant, although nearly half had life insurance. Among those who did understand the term, 44% viewed it as highly important, and another 54% saw it as somewhat relevant to their decision-making.
Differences in financial confidence were also observed across sectors. Healthcare workers reported higher rates of financial insecurity compared to tradespeople, and women were more likely to express lower confidence in managing unexpected costs.
