Daniel Shrimski, managing director of Vanguard Australia, said these figures represent a “sleeper issue” when it comes to retirement as most people tend to presume they will be homeowners and mortgage-free when they retire.

“But having unresolved debt or needing to draw down on savings to pay rent is likely to be a big financial burden for many, especially if full-time paid work is no longer an option,” Shrimski said.

“This is why it’s so important that a robust superannuation balance is part of a ‘whole of wealth’ retirement plan, so Australians can have confidence and security in retirement.”

Unsurprisingly, the cost of living is front of mind for many Australians, with retirees expecting their retirement income needs to increase by $10,000 per year. Working Australians are similarly affected by current cost-of-living pressures, and their expected retirement income needs rose by $25,000 per year.

The survey also found that Australians are increasingly worried their money may not last in retirement, with four in five working Australians somewhat or very concerned about running out of money, and one in two retired Australians don’t know how much money they can spend each year to not outlive their savings.

“We’ve all heard about FOMO – Fear Of Missing Out – now, there’s FORO – Fear Of Running Out,” Shrimski said.

"This also isn’t helped when around two-thirds of all Australians (67 per cent) have not thought about or don’t know what age they will need to plan for in retirement.”

The research also revealed that 40 per cent of Australians have no clear plan for retirement and almost half don’t know what they pay in superannuation fees, and don’t know or are unsure if superannuation is taxed at a lower rate than other investments.

Additionally, one-third of Australians do not know or are unsure of the age pension eligibility rules and almost half of all Australians believe retirees should prioritise their own spending before leaving money to their children or beneficiaries.

“When it comes to retirement confidence, the research continues to show that planning and having access to a financial adviser gives Australians a much better chance at a successful retirement,” Shrimski said.

However, according to the survey, the most popular source of retirement information and guidance overall is free online sources, such as Google (42 per cent).

“This is very concerning because we know quality financial advice can make a real difference to the retirement outcomes and experience for Australians,” he added.

“The more Australians know, the better they can plan for the lifestyle they envision, and the more confident they will feel.”