Australia’s “Silver Tsunami” Sparks $136,000 Superannuation Warning
Australia is bracing for what experts are calling a “silver tsunami” — a massive wave of retirements that’s expected to reshape the nation’s financial landscape over the next decade. According to a new report from the Super Members Council (SMC), nearly 2.8 million Australians are set to retire in the coming years, and this surge could leave many facing serious financial shortfalls if key reforms aren’t made to the country’s superannuation system.
The SMC report warns that the complex and confusing nature of the current super system could cost the average retiree up to $136,000 — roughly $6,500 a year — throughout their retirement. It’s a staggering figure that highlights just how difficult it can be for everyday Australians to navigate their financial futures once they stop working.
Right now, about 150,000 Australians retire each year , but that number is expected to double to around 300,000 by the mid-2030s. At the same time, the total amount held in super by retirees is projected to jump from $750–800 billion to about $1.5 trillion , effectively doubling in size. But despite this growth, many older Australians could still miss out on thousands simply because of how complicated the system is.
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One major issue, according to the report, is that around 700,000 Australians over 65 are still holding their super in taxed “savings-phase” accounts instead of tax-free retirement accounts — meaning they’re losing out on money that could otherwise boost their income.
SMC chief executive Misha Schubert says the need for reform is now urgent. “We need to make the shift into retirement so much simpler, easier, and more intuitive for everyday Australians,” she explained, adding that the country’s retirement system has become “daunting for all but the most financially confident.”
The report lays out a list of proposed changes to make superannuation fairer and more accessible. These include expanding access to affordable financial advice , creating digital retirement planning tools , and automatically removing tax for eligible accounts at age 65 . It also suggests setting minimum quality standards for retirement products and simplifying rules around withdrawals and pension eligibility.
Interestingly, the report also pushes back against the long-held myth that retirees don’t spend enough of their super. Data shows that in the 2024–25 financial year, 64% of retirees with tax-free accounts withdrew more than the minimum required , and that number rose to 78% among those with smaller balances .
Meanwhile, the Australian Taxation Office (ATO) has revealed there’s nearly $19 billion in lost or unclaimed super waiting to be reunited with more than seven million Australians — an issue that could make a huge difference to many nearing retirement.
As the country heads into this demographic shift, the message from experts is clear: Australia needs to act now. Without meaningful reform, millions could find themselves underprepared and underfunded during what should be the most relaxing years of their lives.
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