Younger Australians take lead on saving/investment
New research suggests that young Australians are getting serious about saving and plan to increase their levels of investment in the coming months.
The latest MLC Wealth Sentiment Survey released today revealed that 42 per cent of 18-to-29-year-olds added to their savings in the last three months, compared to 29 per cent of people aged 30 to 49, and 21 per cent of those aged over 50.
The research also suggested that younger investors were also more likely than any other age group to invest more in the next quarter.
The research analysis said that while young investors were demonstrating optimism, older people were taking a more conservative approach — with debt consolidation and superannuation the main priorities.
It said that, on balance, Australians added more to their superannuation (+two per cent), and paid down more of their debts (+six per cent) in the last quarter.
However, the study also found that the retirement savings gap continued to loom as a concern for many Australians, who now expected to retire with just over $450,000 on average — down from $501,000 last quarter with men, on average, expecting to retire with $192,000 more than women.
Commenting on the findings, MLC General Manager, corporate super, Lara Bourguignon, described the focus on building super and reducing debt as a positive sign.
However, she noted that the research had also found that over 40 per cent of Australians had never used a financial planner and don't have a financial plan, suggesting there was work to be done to ensure that Australians were adequately prepared for their later years.
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