BlackRock conducted their “Global Investor Pulse Survey,” where both the Australian and retired segments gave eye-opening feedback. The survey featured 1,000 Australians and 16,500 investors from other countries. While only 55% of retirees in other countries believe that a long-term approach to saving for retirement is necessary, 72% of Australian retirees answered in the affirmative to that question.
According to the Managing Director of BlackRock, Mark Oliver, Australian retirees were “very outspoken (about) what they would do differently” when it comes to accumulating wealth. Mr Oliver credits this outspokenness to an entire generation of Australians who have had superannuation for much of their adult lives. He feels that Australia has created an investor base with a high level of engagement.
The Retired Generation’s Advice to Australians
The first and most commonly offered advice is to start investing early. Most financial planners will tell you that it is never too early to start investing. A huge majority of the retirees wish they had started investing earlier.
Another piece of advice: pay off unnecessary debt as soon as possible. The modern consumer carries a lot more debt than past generations did. This can wreak havoc with one’s financial well-being, both for the present and the future.
Most retirees are adamant that investing is too complicated and too risky to do on one’s own. Consequently, they recommend professional advice, such as that from a financial planner.
Investors of all ages were also asked what their biggest concern for their financial future was. Not surprisingly, the state of the Australian economy was the biggest concern. The next biggest concern was job security, or the state of employment in Australia. A lack of disposable income came in third.
A statistic that was of no surprise to our mortgage brokers: while the average distribution of investment property ownership was 10% internationally, 15% of Australian investors own real estate, while the number jumps up to 35% of Australians defined in the survey as “affluent.”
Our Takeaways from the Survey
Our main takeaway is that it is important to start investing as much and as early as possible. Also, real estate has provided great results for the “affluent.” Call our Perth office for more information: (08) 9453 8888.