Researchers have found that senior Australians invest in shares, young Aussies go for life savings products and middle-aged Aussies like property.
Researchers at financial consultancy firm, Rice Warner have published a report looking at the $2.2 trillion Australian personal investments market. Investors were classified by their age to see their participation in five different asset classes.
Our handy interactive graph shows where Australians of different ages chose to invest their money. Read about some of the key findings from the Rice Warner Personal Investments Market Projections 2015 report below.
- Life savings investments are favoured by young Australians
- Middle-aged Australians invest in property
- Seniors like equities
Young Australians and savings
No prizes for guessing that young Aussies are the group with lowest participation in the share market, with direct investment in equities accounting for just 1% of the personal investments of 15-24 year olds.
Teenagers and those in their early twenties appear to favour managed funds, platforms and life products, with 42% of their investments going to life savings products. Investments made by parents on behalf of children contribute to this figure.
The 15-24 year old age group has the lowest disposable income and the lowest representation in the investment property and equity asset classes. Due to liquidity, the 75+ age group also has a low representation in the investment property asset class.
Compare high interest savings accounts below
Middle-aged Australians and property
Australians aged 35-44 have more money invested in property than anyone else, with property making up 49% of middle-aged Australians’ investment portfolios. 35-44 year olds have a third of their money in cash and term deposit investments and 6% in equities.
Compare term deposits below
Senior Australians and equities
Senior Australians have almost 20% of their money invested in equity. Rice Warner researchers suggest that share trading can be a leisure activity in retirement, which could be the reason for the high number of participants.
Compare share trading below
However, cash and term deposits make up the highest portion of seniors’ investments (55%). Senior Australians have less money in property, indicating that investment preferences change towards liquid assets such as shares as we age.
The Rice Warner report makes predictions about investment preferences in 2030. Overall investments in term deposits and cash products are expected to fall by 12%, while the size of the personal investment market is set to grow by $1.2 trillion-$4 trillion by 2030.