More than one in eight Gen Ys are expecting more of their retirement income to come from property investments than superannuation savings, according to a new research, putting brokers in a unique position to help.
Research by ING
Direct has revealed that more and more Australians don’t believe their superannuation will provide adequately for their retirement, with the expectation that it will only contribute a little more than one third (35.8%) of their retirement nest egg.
As such, Australians are looking to other options, including savings, property and even inheritance money, to make up the remaining bulk of their retirement income. Gen Y are particularly reliant on other sources of retirement income, expecting more than 20% of their nest egg to come from their savings, 13.2% to come from property investments and 7.1% from inheritance.
Mark Woolnough, head of third party distribution at ING
Direct says this provides a huge opportunity for advisers – both financial planners and brokers.
“Australians have long believed that the equity in their property realised from downsizing will go a long way towards their retirement nest egg. However with the younger generation questioning whether they will ever be able to afford property, it is becoming increasingly critical to understand and engage in super,” he said.
“Super is one of the biggest investments most Australians will ever make and advisers are perfectly placed to support their clients to understand and navigate the super landscape, ensuring it becomes an active and meaningful part of the financial strategy.”