By Sean McCormack Chief Commercial Officer, Acenda Group

 

If you spend time talking with Australians approaching retirement, a pattern emerges pretty quickly. A lot of people aren’t short on savings. They’re short on confidence.

Our latest research with CoreData makes this point clearly. Close to two thirds of Australians aged 45+ say income certainty is central to feeling secure in retirement, yet only one in ten says they feel financially comfortable all the time. And while balances have grown, so have the expectations: pre-retirees now believe they need almost $1 million to retire, an 18% jump in just two years. Meanwhile, 87% don’t think the Age Pension will get them to a comfortable lifestyle.

None of this is irrational. Modern retirements are longer than ever stretching 25–30 years and many retirees worry their money won’t last the distance. Market downturns can be damaging when you’re drawing down, inflation eats away at purchasing power, and interest based income swings are more frequent than expected. The risks are real, and people sense that.

Despite these realities, awareness of solutions like annuities remains very low. In fact, our research shows that only around 10% of Australians aged 45+ say they understand them well. So, while the desire for income certainty is high, the understanding of what delivers that certainty is surprisingly low.

The result is a retirement confidence gap. And that gap is exactly where guaranteed income can make a meaningful difference.

What retirees really want: predictability for the essentials

At the heart of retirement planning is a simple need: knowing that the bills are covered.

Our research confirms this. Retirees aren’t necessarily chasing extraordinary returns, they’re chasing peace of mind. They want the essentials locked in: utilities, groceries, insurance, healthcare, rates. Once those are covered, they can relax and enjoy the retirement they’ve worked hard for.

• A sensible retirement strategy isn’t about choosing between flexibility and certainty. It’s about bringing them together in a layered strategy. For example:
• A guaranteed income layer to cover the non-negotiables for life
• A market-linked layer (like an account-based pension) for lifestyle choices, and
• The Age Pension if eligible.

As advisers in our industry know, the approach of layering income streams gives retirees both stability and choice. It’s a structure designed to reduce anxiety about the future and to increase confidence. It works because it reflects how real households make or would like to make decisions.

What’s changed recently is the flexibility of lifetime income solutions. Today’s products allow for inflation protection, withdrawal options, and death benefit features that help with estate planning. These aren’t the rigid offerings of the past. Modern solutions are blending protection with practicality.

So why now for guaranteed retirement income?

There are moments when consumer need, policy momentum and industry capability all start lining up. Guaranteed retirement income is at that moment now.

In terms of our research, the needs of Australia’s retirees and pre-retirees are clearer than ever:

• 63% of Australians aged 45+ say guaranteed income is key to feeling secure
• 4 in 5 say a comfortable retirement is their top financial goal
• Yet fewer than half feel they know how to get there.

Policy is also shifting in the right direction. The Retirement Income Covenant, now nearly three years in existence, has reframed the conversation from account balances to improving retirement income. The Australian Government Treasury’s Best Practice Principles emphasise access to lifetime income products, albeit on a voluntary basis. The Delivering Better Financial Outcomes (DBFO) reforms aim to expand access to quality advice, which is essential because products alone don’t build confidence; advice does. And APRA’s work on capital settings for longevity products suggests clearer, more supportive frameworks are coming.

The capability of our industry is also leading the charge. The market is no longer experimenting with retirement income, it’s building it in earnest. At Acenda we are designing solutions, tools and processes to make guaranteed income simple and accessible. We’ve invested heavily in service and technology so advisers and super funds can model guaranteed income quickly, understand its impact, and integrate it seamlessly into client or member strategies.

All of this sets the stage for guaranteed income to be a mainstream part of retirement design.

What this means for advisers and super funds

If confidence is the outcome that matters most, advice and fit for purpose products are the pathway that gets people there.

Research shows Australians who work with a financial adviser are up to 70% more likely to understand their retirement needs (CoreData Best Possible Retirement 2025 study). And that makes sense: when you’re trying to navigate longevity risk, guidance is foundational to navigate market fluctuations, inflation and changing lifestyle needs. 
For super funds, retirement support is becoming a core expectation. Members don’t just want a product; they are looking for help, guidance and advice to turn these products into a strategy for their retirement. Clear income pathways, guidance at the right moments, and communication that moves away from account balances  and toward lifestyle outcomes round out the expectations.

For advisers, layering guaranteed income with account-based pensions creates a retirement plan that feels both safe and flexible. When clients see their essentials covered for life, they stop asking, “Will my money last?” and start asking, “What do I want to do with the years ahead?” This shift to possibility is the real value of guaranteed income.

Why now is the moment

Australia has built a world class super system. The next step is helping people use it with confidence. Longer lives should feel like a gift, not a gamble. And guaranteed income is one of the strongest tools we have to turn longevity into opportunity rather than uncertainty.

At Acenda, our purpose is simple: confidence at every stage, and this means helping Australians retire with confidence. Guaranteed income isn’t the only answer, but it’s a vital part of the solution. And with demand rising, policy shifting and capability growing, there’s no better time to have confidence at the heart of retirement.

Author’s note:

Data and insights unless otherwise stated are from research commissioned by Resolution Life Australasia Limited (ABN 84 079 300 379, part of the Acenda Group) and prepared by CoreData Research on retirement income, June 2025. Lifestream Guaranteed Income is issued by Resolution Life Australasia Limited and brought to market under the Acenda Life brand.

About the author:

Sean McCormack is Chief Commercial Officer at Acenda Group. He leads Acenda ’s partnerships with advisers, superannuation funds and institutions, focused on building retirement solutions that deliver dependable income and durable confidence for Australian retirees.