Cruise into retirement with confidence

With longer days and sunshine aplenty, Australians are embracing the outdoors, planning getaways and enjoying a renewed sense of freedom. The same spirit should extend to retirement, yet too many retirees still hesitate to spend, despite having built substantial wealth through superannuation.

Australia’s super system has been a global success in helping people save, but the industry must now focus on giving retirees the confidence to enjoy their savings, by rethinking the mix of investment and income structures that can deliver greater certainty, flexibility and peace of mind.

According to the Cruise Lines International Association, 34.6 million passengers cruised across the globe in 2024, among them about 1.3 million Australians, a near 10% increase from the previous year. Baby Boomers represented nearly a third of these travellers, embracing spending more time with multigenerational family and friends. This growth reflects how Baby Boomers are redefining retirement. No longer content to slow down, they’re more active and intent on living well.

Helping more Australians to enjoy the wealth they’ve built

Arguably, the current minimum drawdown rates may no longer reflect how Australians want to live in later life. Increasing them could reinforce super’s purpose: to fund life after work, not accumulate indefinitely.

The industry is responding, spurred by the government’s Retirement Income Covenant, which requires super funds to offer strategies and products that help members convert savings into sustainable income. It has been a crucial step towards building greater confidence. However more collaboration across government, advisers, super funds and product providers may still be needed to help Australians feel secure enough to spend their savings with confidence.

One important part of the solution lies in products that provide lifelong income, such as lifetime annuities. For many, combining super with a lifetime annuity can deliver that sense of security, layering income guaranteed for life on top of market-based returns. It’s a model that can also cushion retirees against future policy shifts, helping them enjoy the lifestyle they’ve worked for without fear of outliving their savings.

Ultimately, retirement confidence isn’t just about how much money you have – it’s about knowing you can use it to make the most of every season ahead. By working together, the government, advisers, super funds and other product providers can help Australians truly cruise through retirement, with the sun on their faces and peace of mind in their plans.