Australian Dream of property ownership fading fast, REST survey reveals

Australian Dream of property ownership fading fast, REST survey reveals
Australian Dream of property ownership fading fast, REST survey reveals

The Australian dream of home ownership is still relevant to millennials, but rapidly slipping out of their reach, research by leading Australian superannuation fund REST Industry Super reveals. 

The study, conducted earlier this year, of more than 1,000 Australians aged 18-34 revealed that a majority (87%) believe the Australian dream of home-ownership is just as important to them as it was for their parents. However, four in five (80%) are concerned they’re not on track to achieving the Australian dream.

More than half, 52%, say it is out of reach by the increasing cost of living and rising house prices.

But despite the affordability concerns, the desire to own property is still very apparent within this age group, with 55% saying they’d sooner save for a property than retirement.

REST Industry Super CEO Damian Hill said that while it was a good thing that young Australians were keeping an eye on their financial situation, it was just as important they plan for 50 years’ time, not just the next five.

“For people in their twenties, retirement can seem a long way off, but the reality is that this is the perfect time to start putting aside a nest egg for your retirement,” said Hill. “Even if you’re only able to put aside an extra 10 dollars a week through a voluntary contribution, this could provide an additional $48,000 extra in retirement income.”

The survey also probed the concerns of millennials whose parents’ retirement is approaching. It found that almost one in three (30%) of millennials are concerned they will have to give up work to look after their parents, or that their parents will come to them for money in retirement.

“It’s concerning to see so many millennials worried about the impact their parents’ retirement will have on their own financial wellbeing. I’d encourage millennials who are concerned about this to start putting a little extra into their own super, to make sure they don’t become a burden on their own relatives in retirement,” said Hill.

In addition, millennials surveyed said they were concerned about the long-term impact of rising living costs with over half (53%) believing that the increased cost of living meant they wouldn’t be able to save enough for a comfortable retirement. Further, 39% admitted they had absolutely no idea how they’d fund their retirement, while less than half (46%) were actually saving for their retirement, whether through compulsory superannuation or personal investments.

“If you’re one of the three in five young Australians who are concerned about how they’ll fund their retirement, the good news is that there are three simple steps every individual can take to get the most out of their super. Firstly, take your superannuation fund with you when you change job – this will ensure you don’t wind up paying two sets of fees which can eat away at your retirement savings,” said Hill.

“Secondly, if you do have multiple superannuation funds, or have lost track of a superannuation account from an earlier job, look into consolidating your superannuation with a single fund, which again can stop fees eating into your retirement.

“Thirdly, it’s worth checking in with your super fund to make sure you have appropriate insurance cover, as the total permanent disability and income protection cover offered by some funds could make a huge difference if you find yourself suddenly unable to work,” said Hill.

 

Tags: 
First Home Buyers Superannuation

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