Forty years is a long time in financial planning.
Yet many of the decisions we make today about retirement, superannuation, housing and family wealth can have consequences that last for decades.
Treasury’s 2026 Intergenerational Report looks ahead to 2065–66 and considers how major economic and demographic changes could shape Australia. The report identifies five significant transitions: artificial intelligence, geopolitical fragmentation, the energy transition, population ageing and changes to Australia’s industrial base.
For individuals and families, some of the report’s most interesting findings relate to the way we may live, work, retire and support future generations.
“The value of a report like this is not that it tells us exactly what Australia will look like in 40 years,” says Michael Hart, Joint Managing Partner at Halpin Wealth.
“It highlights how much can change over a lifetime and reinforces the importance of having a financial strategy that can evolve as circumstances change.”
We could spend longer in retirement
Australians are expected to continue living longer and remain healthier into older age.
Treasury projects that by 2065–66, life expectancy at birth will reach 89.5 years for women and 86.1 years for men. The number of Australians aged 85 and over is also expected to triple over the next four decades.
Living longer is positive news, but it also changes the retirement planning equation.
Someone finishing work in their early or mid-60s may need to fund several decades of living expenses, while allowing for changing healthcare, housing and potentially aged care needs later in life.
“One of the clear themes from the report is that Australians are likely to spend longer in retirement,” Michael says.
“That makes long-term planning increasingly important, particularly as people think about the lifestyle they want to maintain and the different needs that may emerge later in life.”
It also reinforces why retirement planning is about more than reaching a particular super balance. Income, investments, housing, future expenses and the flexibility to respond when circumstances change can all play a role.
Super will play an increasingly important role
Australia’s superannuation system is expected to become an even more significant source of retirement income.
Treasury projects the median superannuation balance for Australians aged 65 to 69 to increase from $204,000 in 2024 to approach $450,000 in nominal terms by the end of the medium-term projection period.
Over the longer term, super drawdowns are projected to approach 6 per cent of GDP by 2065–66, while the maturing super system is expected to reduce reliance on the Age Pension.
“Superannuation is expected to play an increasingly important role in funding retirement,” Michael says.
“For many Australians, decisions made throughout their working life will influence the options available to them when they eventually retire.”
The challenge will remain balancing the future with the present. Money inside super can provide valuable long-term benefits, but people also need financial resources outside super for shorter-term goals and unexpected expenses.
Housing is increasingly an intergenerational issue
Housing is another major theme of the report.
Home ownership among younger Australians has declined substantially over recent decades. Treasury estimates that if ownership rates for households aged 25 to 34 had remained at their 1981 levels, around 250,000 more households in this age group would own their home today.
The report also highlights the increasing time required to save a deposit. It estimates that the time needed to save a 20 per cent deposit increased from 7.1 years in 2002 to 11.2 years in 2025.
For many Halpin families, this is not simply an issue affecting younger generations.
It can become an intergenerational planning conversation as parents and grandparents consider whether they want to help children enter the housing market, and how to do that without jeopardising their own financial security.
“We are seeing more families having conversations about how wealth can support different generations,” Michael says.
“Housing affordability is part of that discussion, but so too are retirement security, estate planning and making sure decisions are considered in the context of the whole family.”
Home ownership can also have implications much later in life. Treasury notes that housing remains an important contributor to financial wellbeing in retirement, with retirees who own their home outright generally facing significantly lower housing costs than those who continue renting.
An ageing population will create broader financial pressures
Australia is also expected to grow more slowly.
Treasury projects average annual population growth of 0.9 per cent over the next 40 years, compared with 1.4 per cent over the previous 40 years.
At the same time, an ageing population is expected to increase demand for health and aged care and place greater pressure on government finances. Government payments are projected to reach 27.7 per cent of GDP by 2065–66. Treasury projects an underlying budget deficit of 1.8 per cent of GDP at that point, although it also projects a stronger long-term fiscal position than in the 2023 Intergenerational Report.
These figures are projections based on Treasury assumptions. They do not tell us what future governments will do with tax, superannuation, aged care or other policy settings.
For financial planning purposes, that uncertainty is important in itself. Strategies designed to last for decades may need to adapt as economic conditions, legislation and government policy evolve.
The way we work and invest will continue to change
The report also places artificial intelligence at the centre of Australia’s long-term economic transformation.
Treasury expects AI to influence productivity, jobs and the skills required across the economy, while acknowledging substantial uncertainty about exactly how large or rapid those effects will be. It assumes long-term labour productivity growth of 1.2 per cent a year, with AI adoption one factor expected to support that outcome.
The broader message is that today’s economy is unlikely to look like the economy of 2066.
Industries will change, new opportunities will emerge and some established ways of working and investing will evolve.
That makes diversification, regular reviews and adaptability important elements of any long-term financial strategy.
Planning for change, rather than predicting it
Perhaps the most useful lesson from a 40-year report is that certainty is unrealistic.
Economic conditions will change. Technology will change. Government policy will change. Families, careers and priorities will change too.
“The real value of long-term planning is not trying to predict exactly what 2066 will look like,” Michael says.
“It is recognising that circumstances will change and putting yourself in a position to respond thoughtfully when they do.”
A good financial plan therefore needs to do more than work under today’s conditions. It should provide enough flexibility to accommodate a longer life, changing family needs and unexpected opportunities or challenges along the way.
Source: Intergenerational Report 2026: Australia’s future to 2066, Australian Treasury, published 21 September 2026. The report projects the outlook for the Australian economy and Commonwealth Budget to 2065–66 and is based on long-term economic and demographic assumptions.
Read the full 2026 Intergenerational Report on the Treasury website
Plan today, with flexibility for tomorrow
No one can know exactly what the next 40 years will bring, but thoughtful planning can help you prepare for change. Halpin Wealth can help you consider how longevity, retirement income, housing and family wealth fit within your broader financial strategy, while building in the flexibility to adapt over time.
If you would like to review whether your current plan remains aligned with your goals, speak with one of our financial advisers.
This information provided in this article is general advice only and has been prepared without taking into account your own objectives, financial situation or needs. Before making a financial decision based on this advice, you must consider whether it is appropriate in light of your own needs, objectives, and financial circumstances, and where relevant, obtain personal financial, taxation or legal advice. Where a financial product has been mentioned, you should obtain and read a copy of the Product Disclosure Statement (PDS) prior to making any decisions about whether to acquire a product.