Young Australians have shown the strongest interest in property investment, according to a new survey.
Released yesterday, the MLC Quarterly Wealth Sentiment Survey revealed those aged between 18 and 29 were the most eager to invest in real estate.
Australians are becoming a little more aggressive in their near-term investment strategies, the survey found.
While paying off debt remains the focus, it has declined in importance compared with Q1; cash and deposits have also declined.
There is less aversion towards fixed income investments, shares, investment property and balanced funds.
The MLC survey interviewed more than 2,000 people to assess the investment environment by asking questions related to their current financial situation, investment intentions, level of concern related to superannuation and other investments, change in life insurance, and distance to retirement and investment strategy.
Taking a career break to raise kids has been identified as the most significant barrier to having sufficient retirement savings.
In the June quarter, ‘career break to raise kids’ increased by 70 per cent to take out the top spot impacting sufficient savings in retirement.
Previously, unemployment and major health issues have consistently ranked highest.
Women rated a career break as their number one barrier (rated 70 out of 100) to retirement savings, while men ranked it third overall (54 out of 100), behind unemployment and major health issues.
“With just five per cent of Australians confident they will have enough money in retirement, the gap in retirement savings will be one of the biggest challenges facing our ageing population,” NAB Wealth general manager of client management Lara Bourguignon said.
“Families, and particularly women, concerned about the impact career breaks will have on their retirement savings should plan ahead, since there are strategies that can minimise this financial shortfall.
“Pleasingly, this quarter we’ve seen a small increase in people investing in super as the benefits of taking control of your finances slowly start to resonate,” she said.
MLC’s Save Retirement campaign, launched in March this year, aims to educate and encourage Australians to take action regarding their retirement.