When the 9-to-5 Ends – How Can Australian Millennials Realistically Prep for Retirement?

Recent findings from Vanguard’s How Australia Retires 2025 report reveal that “many younger Australians have a pessimistic outlook on retirement.” And given current inflation, rising housing costs, and global uncertainty, life after 60 does not seem to look as good for millennials as it did for their parents or grandparents. But beyond mapping out investment strategies with SMSF accountants and agreements lawyers, how can today’s professionals start prepping for when the 9-to-5 ends?

Expectations vs reality

Published in September 2025, the Vanguard report found that many younger Australians anticipate needing at least $100,000 per year in retirement income to feel comfortable, nearly double what many current retirees manage. According to the Association of Superannuation Funds of Australia’s (ASFA) June 2025 standard, the “comfortable” annual spending benchmark is $75,319 for couples and $53,289 for singles, reflecting what retirees need to live well with essentials, leisure, travel, and more. The expectation gap between millennials and today’s retirees reflects not only rising living costs but also how the notions of comfort and security are defined per generation.

For many, a “comfortable” retirement once meant home ownership, regular holidays, and the freedom to support family or volunteer. But with property prices remaining high and wages struggling to keep up with inflation, those markers of comfort feel increasingly out of reach. Vanguard’s data show that 58% of millennials worry about not having enough super to fund their retirement, while 64% admit they’re unsure of how much they’ll actually need.

This uncertainty underscores a broader truth: millennials are entering their prime earning years at a time when financial systems are less forgiving. The safety nets that benefited past generations, such as stable housing markets, generous pensions, predictable interest rates, are no longer guaranteed.

Is SMSF really enough?

A self-managed super fund (SMSF) allows Australians to choose their investments, from property to shares, giving them a sense of agency over their financial future. But despite the appeal of control and flexibility, is it really enough to live on in retirement?

According to the Australian Taxation Office’s (ATO) June 2025 SMSF Quarterly Statistical Report, the average SMSF holds about $1.6 million in assets, while the average member balance sits around $881,000. While these seem substantial, experts warn that the figures can be misleading. Balances vary widely, and even a seven-figure fund may not stretch as far as expected once inflation, market volatility, and longer life expectancies are factored in.

Moreover, an SMSF requires ongoing management, compliance, and strategy. A poorly diversified fund, or one with high administrative costs, can easily underperform. For those without the time or expertise to manage their investments, professional guidance becomes crucial.

The bottom line: an SMSF can be an excellent vehicle for retirement wealth, but only if it’s well managed, regularly reviewed, and part of a broader financial plan that considers all aspects of one’s wealth, from property to personal savings.

What millennials can do now

While the prospect of retirement may seem unimaginable at best or daunting at worst, it’s never too late to take practical steps to secure the future. And if allocating capital for major investments is not in your cards at the moment, start with the following baby steps:

1. Review your fixed financial commitments

Take a closer look at your big, recurring financial commitments, such as rent, insurance, mobile plans, and utility providers. Many Australians stay with the same service out of convenience, even as cheaper or better-value options emerge. Renegotiating your rent, refinancing your mortgage, or switching to a more competitive energy or insurance plan can free up hundreds each month. Redirecting these savings toward super top-ups or investment contributions can make a far greater impact on your long-term financial position than cutting coffee runs or Spotify ever will.

2. Reduce or eliminate high-interest debt

Credit cards, personal loans, and buy-now-pay-later services may offer short-term convenience, but they can significantly chip off your future wealth. Paying off high-interest debt should be a priority before investing heavily elsewhere. Clearing these liabilities frees up cash flow that can then be redirected into superannuation or other long-term assets.

3. Reconsider your property strategy

While home ownership remains a major financial milestone, millennials may need to redefine what that looks like for them. With property prices still elevated, renting while investing the difference could be a smarter move for some. Others may consider “rentvesting” or owning a property in a more affordable area while living in a rented space closer to work or family. The key is to make property work for you, not against you.

4. Make your super do more

Superannuation is one of the most powerful tools for building retirement wealth, but it can also be one of the most misunderstood. A qualified SMSF accountant can help you structure investments, maximise contributions within compliance limits, and give recommendations on how to build your funds without risking penalties. Professional guidance can spell the difference between a stagnant fund and one that actively grows with your goals.

5. Lawyer up for business and investments

Many millennials are supplementing their income through side businesses or partnerships. Whether you’re already on this route or planning to take it, consulting a skilled agreements lawyer can help safeguard your ventures. Especially when going through partnership contracts or shareholder agreements, lawyers can help ensure that your business interests are protected from disputes that could derail your business progress.

Conclusion

The future of retirement for Australian millennials is undoubtedly complex, shaped by shifting economic conditions and changing expectations. But while the road ahead may be uncertain, preparation is still the most reliable safeguard.

A comfortable retirement won’t come from optimism alone. It will come from conscious, consistent effort: budgeting smarter, reducing debt, managing super strategically, and getting professional help where it matters.

Because when the 9-to-5 finally ends, comfort won’t just mean financial freedom. It will mean peace of mind, knowing that you’re starting the next chapter on solid ground.