Australians look to property and savings for their retirement nest egg

Wednesday 18 February 2015:  Research by ING DIRECT has revealed that Australians don’t believe their superannuation (super) will provide adequately for their retirement, with the expectation that it will contribute a little more than one third (35.8%) of their retirement nest egg.

Australians are looking to options they are more familiar and comfortable with, including savings, property and even inheritance money, to make up the remaining bulk of their retirement income.

en 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, ING DIRECT, said this provided a huge opportunity for advisers: “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.

“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.”