A year of living with uncertainty: Shifting superannuation policy undermines retirement confidence

Australians seeking greater certainty about super and tax settings: a major concern for 2026

MELBOURNE, Australia, Monday 16 March – Retirement confidence among high-net-worth (HNW) Australians has fallen sharply since 2022, according to new research commissioned by Generation Life, as evolving superannuation and tax settings emerge as a major source of uncertainty in long-term financial planning. 

The 2025/26 Navigating Uncertainty Report polled the sentiments of more than 650 HNW Australians and 350 financial advisers between October and November 2025.* It reveals broad consensus that Australia’s superannuation system remains strong at its core.  

Yet respondents report mounting pressure in the current financial landscape, as frequent legislative adjustments and heightened taxation debate continue against a backdrop of ongoing policy change. Most recently, the passage of Division 296 through Parliament for Royal Assent – set to begin from 1 July 2026 – is a stark reminder that for many Australians, long-term retirement planning must now contend with ever-shorter policy cycles, weighing on confidence even among financially resilient households. 

 

Declining confidence among HNW Australians 

A majority of respondents say they feel less confident today than they did in 2022. In comparison to three years ago: 

• 71% are now less confident about their financial security   

• 69% now feel less confident about retiring comfortably  

• 63% are now taking less investment risk with their portfolios 

This shift is unfolding amid heightened geopolitical tension, market volatility and rising household budget pressures - factors that continue to influence how Australians plan, adapt and make financial choices.  

Yet despite softening sentiment, retirement remains the top financial goal, ahead of wealth transfer, wealth accumulation and lifestyle priorities. 

“A secure, comfortable retirement is the ambition of every Australian - it’s their highest financial priority,” said Felipe Araujo, CEO of Generation Life. 

“But the journey feels less certain. Trust in Australia’s world-class superannuation system endures, yet confidence in the rules that surround it has weakened - shaped by years of shifting legislative change and taxation debate, of which Division 296 is only the most recent chapter.” 

 

A world-class savings system clouded by uncertainty 

While 84% of HNWs agree that Australia has one of the best retirement systems globally, concerns about stability are intense: 

• 66% say the rules change too often and are hard to follow 

• 61% are not confident the system will build and protect long-term savings 

• 63% believe the system is flawed in the way long-term savings are taxed. 

This uncertainty is most pronounced among those approaching retirement, with respondents aged 60 and over reporting the lowest levels of confidence. At this stage of life, changes to superannuation rules naturally carry greater potential consequences - affecting how individuals think about their contribution strategy, the timing of retirement and the tax settings that will apply to their savings. But this concern is no longer confined to pre-retirees. Mid-life HNW Australians (30-49) now report the highest levels of systemic pressure and are already adjusting their behaviours in response to continued policy settings, signalling that vigilance is also spreading across generations. 

 

Policy churn now a major pressure point 

Australians are now placing far greater weight on how superannuation rule changes influence their near-term decisions - a notable shift from 2024, when inflation dominated household concerns. This is reflected in clear movement across the HNW population, with contribution patterns and advice interactions increasingly shaped by the broader policy environment. 

• About one-third of those who reduced super contributions in the past year did so in response to proposed government tax policy changes 

• Almost 40% reduced contributions following adviser guidance, indicating greater engagement with advice as rules evolve 

 

Super-tax conversations surpassing retirement and inheritance in advice 

This behavioural shift is also reshaping advice demand. Understanding superannuation and tax legislation is now the third-highest driver of advice engagement, ahead of both retirement and legacy planning - even as Australia enters the largest intergenerational wealth transfer in the nation’s history, estimated at $5.4 trillion1. 

“What we’re seeing is a meaningful shift in the questions Australians want answered,” explained Mr Araujo. 

“Super-tax settings have now become a huge focus, alongside retirement and the great wealth transfer on the advice agenda, not because people are changing their goals, but because they want clear direction - certainty - on the rules that frame their post-accumulation plans.” 

The CoreData study explored this pattern of uncertainty with advisers, and their responses closely echoed the client trends. About 70 per cent had spoken to most or all of their clients about the Government’s Division 296 policy since its announcement in 2023, with conversations commonly centring on a lack of clarity and concerns about supertax policy rules continually changing. However, this increased attention has not translated into broad awareness across the wider HNW population, especially non-advised people. 

 

Division 296: high attention, uneven awareness 

Despite extensive public debate and media focus at the time of fieldwork in 2025, 44% of HNW Australians said they were not familiar with the Division 296 super tax. Among those who were familiar: 

• 65% said they supported the proposal 

• 65% said the proposal increased their confidence in the system; just 9% said it reduced their confidence 

 

Advice provides clarity in a shifting policy landscape 

This uneven awareness aligns with a broader theme across the study: as policy settings continue to evolve, Australians in ongoing advice relationships show consistently higher familiarity - revealing a clear divergence in how emerging rules are interpreted and understood.  

• Awareness of Division 296 sits at 62% among those receiving ongoing advice, compared with 38% among those without an adviser 

• Almost a third say advisers help simplify complex decisions, reduce cognitive load and provide reassurance amid uncertainty 

Australians receiving professional advice also report significantly stronger financial satisfaction: 

• 86% of those with ongoing advice are happy with their financial situation (vs. 55% without) 

This sentiment is mirrored in how advisers assess future risk. While 72% of advisers believe future legislative changes will negatively affect HNW investors in general, only 21% believe it will negatively impact their own clients – pointing to confidence in their abilities to adapt structures and strategies over time. 

 

A clearer path forward for retirement confidence 

Generation Life’s research shows that while confidence in the superannuation system remains strong, successive rule changes are reshaping how Australians approach their retirement strategies. In this environment, enduring planning structures that offer clarity and stability across investment and retirement decisions become even more important - and Australians are increasingly turning to advisers for clear guidance through evolving policy settings. 

Commenting on the broader implications of the findings, Mr Araujo emphasised, “Australians are seeking clearer and more stable policy settings so they can plan with confidence. Rule certainty is fundamental to long-term retirement planning, and with Division 296  now passed through Parliament for Royal Assent, advisers play a critical role in helping to translate such policy shifts into the right structures and decisions for their clients. 

“With clear guidance, communication and well-designed long-term investment frameworks, Australians can move forward with much greater assurance.” 

Generation Life continues to enhance its investment solutions to help advisers and their clients navigate this environment - supporting Australians across all life stages as they plan for the complexities of tomorrow. 

 

Media Inquiries 

Madden & Assoc. 

Gracie Bruce  

0452 051 819 

gdg@madden.com.au 

 

*About the 2025/26 Navigating Retirement Uncertainty Report 

The 2025/26 Navigating Uncertainty Report was co-designed by Generation Life, Madden & Assoc., and CoreData, with all fieldwork conducted by the CoreData research team. The survey was undertaken online between October and November 2025 when Division 296 superannuation tax was proposed as at the date of participation. Respondents were sourced through CoreData’s proprietary research panel, supplemented by specialist panel partners. In total, 650 Australian high-net-worth (HNW) investors and 350 financial advisers participated in the survey, completing a structured questionnaire with an average length of 12 minutes. HNW investors are classified as having an investment portfolio over 1 million, excluding superannuation and principal place of residence. All data underwent quality, and validity checks by CoreData for accuracy, consistency and reliability, reducing the risk of error or bias and to enable robust insights. 

The full report can be accessed here: 2025/26 Navigating Uncertainty Report. 

 

About Generation Life 

As the pioneer of Australia’s first truly flexible investment bond, Generation Life has been at the forefront of providing innovative investment, estate planning and retirement solutions since 2004 with $5.2 billion in funds under management to December 2025. Generation Life works with some of the leading Australian and international managers, as well as our own investment experts to provide investment choice and flexibility designed to meet the varied needs of clients. Generation Life is also proud to be shaping the retirement income landscape with LifeIncome, applying our innovative approach to clients’ retirement income needs, enabling Australians to focus on enjoying retirement with the confidence of a regular income guaranteed for life. 

 

About CoreData 

CoreData is a global specialist research and insights consultancy. The firm uses both bespoke and syndicated research to uncover strategic insights that can be implemented within organisations. CoreData prides itself on building trusted client relationships, enabling a deep understanding of client needs and the delivery of tailored, meaningful solutions. The team brings together experienced research, financial services, marketing and media professionals. This combined industry expertise and primary research capability provides a comprehensive perspective on consumer needs, attitudes and behaviours. 

 

Disclaimer 

Generation Life Limited AFSL 225408 ABN 68 092 843 902 (Generation Life) is the sender of this communication and product issuer, provides general financial product advice and other services related to investment life insurance products and life risk insurance products. Any superannuation general financial product advice provided is by Generation Development Services Pty Limited ABN 14 093 660 523 (GDS) as Corporate Authorised Representative, No. 001317211 of Evidentia Financial Services Pty Ltd AFSL 546217 ABN 97 664 546 525 (Evidentia). The information provided is general in nature and does not consider the investment objectives, financial situation or needs of any person and is not intended to constitute personal financial advice. The product’s Product Disclosure Statement (PDS) and Target Market Determination (TMD) are available at www.genlife.com.au and should be considered in deciding whether to acquire, hold or dispose of the product. Superannuation products’ PDSs and TMDs are available via the websites of their product issuers. Generation Life’s products are considered as able to provide certainty and protection as its investment bonds are governed by legislation that has changed infrequently and they can be appropriately structured to bypass an estate and be protected in case of bankruptcy of the life insured, and its LifeIncome product provides a regular income for life. Investments carry risks. Generation Life, GDS and Evidentia exclude, to the maximum extent permitted by law, any liability (including negligence) that might arise from this information or any reliance on it. Generation Life, GDS and Evidentia do not make any guarantee or representation as to any particular level of investment returns and the currency, accuracy, completeness, availability or suitability of any information provided.  It is not intended to create any legal or fiduciary relationship. Professional financial advice is recommended. Generation Life does not accept any responsibility or liability for superannuation general financial product advice provided by GDS.