A new study reveals many Australians still consider property investments the most reliable retirement savings strategy. Kristen Peach reports.
If diversification is the key principle underpinning a successful investment strategy, why then do so many people rely on property to fund their retirement? The Mind & Mood study, commissioned by the Australian Institute of Superannuation Trustees (AIST), conducted by research group IPSOS and released at CMSF last month, revealed more than one third of consumers believe paying off their mortgage is a better investment than superannuation.
A further 26.1 per cent say their core long-term retirement nest egg is their house, while almost one quarter (24.3 per cent) believe they get a better return from investing their money in property than in super. While many of the survey participants – men and women ranging from 18 to mid 70s from a middle socio-economic background – may not be seeking financial advice, the results are nonetheless a worrying indication of the heavy dependence of some Australians on the value of their home.