Term deposits preferred over super
Term deposits, property, and holidays take the cake when it comes to investor windfall, according to BT Financial Group.
BT's financial health index found 40 per cent of Australians would invest in a term deposit or high interest account following a $100,000 windfall. Just over a third said they would invest in property, and the same for a holiday.
However, only one in five would put the money towards superannuation.
BT Financial Group general manager for superannuation, Melinda Howes, said "many people currently nearing retirement are under-funded — they don't have enough super to last their lifetime".
"Investing an inheritance in super in your 50s or 60s could be what makes the difference between a frugal and a comfortable standard of living in retirement," she said.
The index also found over one in four Australians hold shares, and a similar proportion did not have any investments at all.
Property was the most popular investment for those under 45, and 54 per cent of those aged between 25 and 35 said they would buy property.
"Australians are certainly comfortable investing in cash and short-term savings accounts and term deposits, but the truth is, they are unlikely to reach their superannuation goals with these investments alone," Howes said.
Recommended for you
Grant Hackett has been promoted from CEO of Generation Life to head up the wider Generation Development Group.
Tribeca Investment Partners has made a distribution hire from Australian Ethical in a newly-created role focused on the national intermediary market.
Asset managers may be urged to diversify their product ranges, but investment executives have warned any M&A deal should avoid simply filling gaps and instead consider long-term value creation.
Specialist wealth platform provider Mason Stevens has become the latest target of an acquisition as it enters a binding agreement with a leading Sydney-based private equity firm.
