What will it look like? And how can you best prepare for it now?

Thanks to lifelong learning incentives introduced back in the late 2020s, reskilling in your 60s is completely normal. Few people “stop cold” any more, even after redundancy. And the biggest shift of all? By 2040, we’ll choose when we work, not just if we work.

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Flexibility is the norm, and plenty of us will still earn a little income well into our 70s, and not because we have to, but because it keeps us sharp, socially included, and the money is nice.

We chase healthspan, not just lifespan

The reality for many of us heading towards retirement in 2040 is that we’re going to live a lot longer than we once expected. Fifteen years ago, we thought that maybe 10 per cent of people over 50 would reach 100.

Now, with quantum computing and AI tackling the biggest causes of chronic disease and death, it’s closer to 40 per cent. And because we know this, the way we look after our bodies has changed completely.

In 2040, the big four threats of dying younger – cancer, cardiovascular disease, dementia and diabetes – are detected earlier and prevented more effectively. Preventive health finally became the national obsession it always should have been in the 2030s, and governments flipped the way they drove and funded healthcare to prioritise it.

By 2040, almost every household uses personal health tech that tracks inflammation levels, muscle mass, bone density and sleep quality in real time. Micro-adjustments to diet and exercise have become everyday habits.

Strength training is mainstream. Councils have built good outdoor resistance parks beside walking trails, and every gym runs classes specifically designed for over-50s. People care. And the result is that the average 70-year-old now moves like a 60-year-old did back in 2025 – with sharper cognitive health too.

More super, more support from funds and no need for advice

Anyone retiring in 2040 will have had super contributions above 9 per cent for their entire working life, so balances are far healthier than they are today.

The typical retiree walks in with about $600,000 to $800,000, and many pass the million-dollar mark thanks to decades of compounding, consistent contributions, and the late-2030s investment boom.

The super industry has changed significantly. Drawdown strategies, longevity products and the combination of both into hybrid income streams are now standard.

Retirees no longer rely on a single account setting or a single approach to investing. Most blend an account-based pension with a guaranteed lifetime income product to remove the fear of outliving their savings.

Super funds now spend as much time supporting members through retirement as they once spent helping them save for it. And the shortage of advisers isn’t even a topic of conversation any more because financial advice is fully automated with AI and everyone has their own personal agent to validate projections from companies and funds.

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Robust technology underpins people’s financial decisions, eliminating the enormous conflicts of interest we saw between 2000 and 2030. The impact of different choices can be mapped and modelled almost instantly, with risk scenarios flagged in plain language by your own agent who’s truly on your team.

People finally receive guidance that is accurate, consistent and transparent. Imagine that.

Super’s gender gap has narrowed too. Eventually, governments realised it was far cheaper to top up parents’ and carers’ super during the years they stepped back from paid work than to fund a full pension decades later.

So they made the shift: super contributions now flow automatically during recognised caring periods, and the money compounds over time instead of leaving a permanent dent in someone’s retirement and the federal budget. It’s led to women retiring with much fairer balances already, 10 years on.

Even so, retirement in 2040 isn’t cheap. The cost of a comfortable lifestyle that was about $75,000 a year in 2025 now requires roughly $120,000, and many retirees aim for $150,000 to $200,000 in 2040 dollars to enjoy the travel, wellness and lifestyle they expect.

The age pension still exists, but it’s more flexible, rewarding people who keep working part-time in the first part of their retirement while providing a secure floor and ongoing support for those who need it.

Purpose becomes the new wealth

By 2040, the science of longevity really is mainstream. We know that purpose, relationships and community matter just as much as money and muscles. Retirees build “portfolios of purpose”, combining volunteering, mentoring, creative pursuits and community leadership.

Universities run affordable midlife and late-life learning programs, and local libraries have become community powerhouses, offering everything from 3D-printing workshops and creative hubs to philosophy nights.

Loneliness still exists, but we talk about it openly now, and it’s tackled early. Councils fund local connection programs, and technology quietly helps people stay engaged without replacing human contact.

Care finally catches up

The aged care reforms of the 2030s finally landed. Australia now has a proper “home-first” care model, with suitable housing designed into neighbourhoods instead of tucked away on the edges.

Technology does the heavy lifting – hubs to access care services are the norm; fall-detecting floors are common in homes of the ageing, and we lean on smart tech everywhere, from hydration sensors to AI rostering for carers. Families still carry emotional weight, but it’s less chaotic. Early support kicks in sooner, carers get proper financial recognition, and respite is built in to help, not bolted on.

So what do we do now?

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If we’re heading for retirement in the 2040s, we’re planning for a longer, healthier, more flexible life. That means three things today:

1. First, make the most of your ability to get money into super while you can. Maximise concessional contributions in your final 10 to 15 working years and review how your money’s invested. The compounding runway from 50 to 65 is powerful – much more powerful than most people realise.
2. Second, start shaping the next phase of your working life. Don’t think of retirement as “stopping” – think of it as a new phase of life where some of your income comes from passive sources, but you still need passions and purpose. What would a satisfying, flexible, purpose-filled work life look like in your 60s and 70s?
3. And finally, take your healthspan and sense of purpose much more seriously. The future of retirement belongs to those who stay strong, fit, connected and curious. The science is clear: we can’t control how long we live, but we can control our quality of life, and the active steps we take to look after our bodies.

So here’s to the retirement class of 2040 – the generation of retirees who’ll live longer, age better and chase a truly epic retirement, and to the super funds that will help us get there.

Bec Wilson is author of the bestseller How to Have an Epic Retirement and the newly released Prime Time: 27 Lessons for the New Midlife. She writes a weekly newsletter at epicretirement.net and hosts the Prime Time podcast.

• Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that considers their own personal circumstances before making financial decisions.

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