Young Australians Delay Retirement by 3-10 Years to Buy Homes, August 31

Four in five younger Australians now expect cost-of-living pressures to delay their retirement, according to new research from Great Southern Bank. Millennials are putting down 16-20% deposits for first homes, while Gen Z typically saves 11-15%, compared to just 5-10% for Baby Boomers. The most common expected delay is three to five years, followed by five to ten years. Home ownership has become so costly that retirement security is being sacrificed to enter the property market.

How much longer will Australians work

The Great Southern Bank report surveyed younger Australians about their retirement expectations. Eighty percent said cost-of-living pressures will delay retirement. Of those, 22 percent expect a three to five year delay, while 21 percent anticipate five to ten years. This represents a fundamental shift in how younger generations plan their financial futures.

Why deposits are eating retirement savings

Millennials are putting down significantly larger deposits than Baby Boomers did. Millennials typically save 16-20% for a first home, Gen Z saves 11-15%, versus 5-10% for Baby Boomers. The research reveals younger Australians are making careful financial decisions despite higher housing costs. Larger upfront deposits mean less money available for retirement savings during peak earning years.

Government response to housing affordability

Prime Minister Anthony Albanese announced plans to help first-time buyers by cutting home purchase costs by up to 40 percent through changes to tax breaks for property investors. The government’s National Housing Accord aims to deliver 1.2 million dwellings over five years. Albanese stated Australia’s housing policies must serve young Australians better. However, the construction industry is facing challenges meeting these targets.

Broader financial pressures on young Australians

Financial stress among 18-24 year-olds remains severe, with 80-90 percent experiencing difficulty each year. Fewer than half can save regularly, and confidence in achieving financial security fell to 46 percent in 2025. Young Australians are also concerned about climate risks, with 35 percent worried floods, bushfires, and rising insurance costs could affect home values over the next decade.

Final Thoughts

Young Australians are trading retirement security for home ownership, with most expecting to work 3-10 years longer. Larger deposits and cost-of-living pressures are reshaping retirement planning across generations. Government intervention on housing costs may ease but not solve the core tension between saving for a home and saving for retirement.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.