2026 Challenger Retirement Happiness Index report

The 2026 Challenger Retirement Happiness Index shows that most older Australians remain positive about retirement. Happiness levels are strong, and many people are enjoying the time, flexibility and independence that retirement can bring. Yet this year's research also highlights an important concern. While Australians are finding joy through activities, purpose, and social connections, confidence about money continues to wane.

Cost of living pressures, uncertainty about how long savings will last and concerns about making the wrong financial decisions can weigh on people's peace of mind. This matters, because while money alone doesn't create happiness, financial insecurity can undermine it.

One of the clearest insights from this year's Index is the powerful role that financial certainty plays in retirement wellbeing.

Australians consistently tell us that having a guaranteed, regular income that covers everyday living costs would significantly improve their happiness. Knowing that essential expenses are taken care of allows retirees to focus on living, rather than worrying.

The findings reinforce Challenger's long-held belief that retirement planning should also focus on guaranteed, regular income, not just savings. A confident retirement is one where people feel secure enough to spend their money, enjoy their time and plan for the years ahead. The insights in this report will help spark more informed conversations- between retirees, advisers, policymakers and families-about what really matters later in life. A happy retirement is not just about how much money you have. It is about the confidence to live well.

About the Index

The Challenger Retirement Happiness Index is an annual study developed in partnership with independent research provider YouGov.

• Surveyed more than 2,000 Australians aged over 60.
• Measures happiness across six key pillars.
• Tracks changes year-on-year to understand how retirement experiences are evolving.

Australians aged over 60 remain positive about retirement, with the Challenger Retirement Happiness Index rising from 68.9 in 2025 to 69.5 in 2026. Yet beneath this resilience, a familiar tension remains. Rising cost of living continues to weigh on lifestyle, financial security and confidence that savings will last.

The third annual Challenger Retirement Happiness Index, conducted in partnership with independent research provider YouGov, surveyed more than 2,000 Australians aged 60+ to better understand what drives happiness in retirement.

The findings reinforce that retirement happiness is shaped by more than money, with activities, mental wellbeing, purpose and social connection emerging as the strongest drivers. Even so, financial security remains an important foundation for confidence, and many older Australians believe guaranteed, regular income would materially improve their retirement happiness.

However, after decades focused on accumulating superannuation, many Australians find the shift to spending and enjoying their next chapter difficult. While this report shows strong levels of happiness overall, older Australians can be cautious about drawing on their savings, particularly in an environment of rising living costs and uncertainty about how long their money will need to last.

Together, the results point to a clear opportunity for Australia's retirement system. While the superannuation system has helped millions of Australians build a retirement nest egg, greater support is needed to help retirees convert those savings into guaranteed, regular income in order to have confidence to enjoy their next phase of life.

Beyond money - the role of purpose and connection

Purpose plays a powerful role in shaping happiness in retirement. Having a clear sense of purpose helps retirees stay engaged, remain positive, and feel fulfilled.

More than seven in ten Australians aged over 60 say they have a strong sense of purpose in life, a trend remaining consistent since 2023. So, what helps retirees maintain this sense of purpose?

The Happiness Index shows the strongest drivers of overall retirement happiness are:

• Activities and hobbies
• Mental health
• Having a purpose
• Social connections
• Physical Health
• Having money