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Ethical investment

Report reveals investor preferences by age group in Australia

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.

Key findings include

  • 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

Rates last updated June 18th, 2018
$
$
months
Name Product Maximum Variable Rate p.a. Standard Variable Rate p.a. Bonus Interest p.a. Fees Min Bal / Min Deposit Interest Earned Product Description
RaboDirect High Interest Savings Account
3.05%
1.80%
1.25%
$0
$0 / $1
Introductory rate of 3.05% p.a. for 4 months, reverting to a rate of 1.80% p.a. Available on balances below $250,000
ING Savings Maximiser
2.80%
1.15%
1.65%
$0
$0 / $0
Ongoing, variable 2.80% p.a. when you link to an ING Orange Everyday bank account and deposit $1,000+ each month and make 5+ card purchases a month. Available on balances up to $100,000.
Bankwest Hero Saver
2.60%
0.01%
2.59%
$0
$0 / $0
Ongoing, variable 2.60% p.a. rate when you deposit at least $200 each month and make no withdrawals. Available on balances up to $250,000.
HSBC Serious Saver
3.00%
1.60%
1.40%
$0
$0 / $0
Introductory rate of 3.00% p.a. for 4 months, reverting to a rate of 1.60% p.a. Available on balances below $1,000,000.
AMP Saver Account
2.55%
2.10%
0.45%
$0
$0 / $0
Introductory rate of 2.55% p.a. for 4 months, reverting to a rate of 2.10% p.a. Available on balances below $5,000,000.
CUA eSaver Boost Account
2.75%
0.25%
2.50%
$0
$0 / $1
Ongoing, variable 2.75% p.a. when you make a total deposit of at least $250 and no withdrawals in a calendar month. Available on balances up to $500,000.
Bank of Queensland WebSavings Account
2.90%
1.30%
1.60%
$0
$1 / $1
Introductory rate of 2.90% p.a. for 4 months, reverting to the standard rate of 1.30% p.a. Available on balances up to $5,000,000 and subject to approval above this balance.
AMP Bett3r Account - Save Account
2.25%
1.50%
0.75%
$0
$0 / $0
Earn a competitive, ongoing rate of up to 2.25% p.a. and set personal savings goals. Receive linked Pay and Spend accounts to help manage your money effortlessly.
RaboDirect High Interest Savings Account (SMSF)
2.70%
1.90%
0.80%
$0
$0 / $0
Introductory rate of 2.70% p.a. for 4 months, reverting to a rate of 1.90% p.a. Available on balances below $250,000
HSBC Flexi Saver Account
2.50%
1.25%
1.25%
$0
$0 / $0
Ongoing, variable 2.50% p.a. when you deposit $300+ each month (other conditions apply). Available on balances up to $5,000,000.
Citibank Online Saver
2.85%
1.70%
1.15%
$0
$0 / $0
Introductory rate of 2.85% p.a. for 4 months, reverting to a rate of 1.70% p.a. Available on balances below $500,000.
Westpac Life
2.30%
1.50%
0.80%
$0
$0 / $0
Ongoing, variable 2.30% p.a. each month you deposit money, and make sure your balance is higher at the end of the month than it was at the beginning. No monthly account-keeping fee.
RaboDirect SMSF PremiumSaver
2.15%
0.90%
1.25%
$0
0 / $0
Ongoing, variable 2.15% p.a. when you link to an RaboDirect High Interest Savings Account and increase your balance by $200+ each month. Available on balances up to $250,000.

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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

Rates last updated June 18th, 2018
$
Name Product 3 Mths p.a. 4 Mths p.a. 6 Mths p.a. 12 Mths p.a. 24 Mths p.a. 36 Mths p.a. Min Deposit Interest Earned
Citibank Term Deposit
2.60%
-
2.80%
3.00%
-
-
$100,000

Compare up to 4 providers

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

Rates last updated June 18th, 2018
Name Product Monthly Fee Standard Brokerage Fee Margin trading - Online IPOs / Floats International Description
IG Share Trading
$0
$8
Yes
Yes
Yes
Low brokerage fees on Australian and international shares. Earn 25 Qantas Points when you trade Australian shares, 50 Qantas Points when you trade international shares (T&C's apply).
SelfWealth Share Trading
$0
$9.50
No
No
No
Trade ASX-listed shares for a flat fee of $9.50, regardless of the trade size. New customers receive free access to Community Insights with SelfWealth Premium for the first 90 days. Follow other investors and benchmark your portfolio performance.
Saxo Capital Markets Share Trading
$0
$6.99
Yes
No
Yes
Access over 19,000 Australian and global shares.
CMC Markets Stockbroking Account
$0
$11
Yes
Yes
No
Trade shares, warrants, options, EFTs, managed funds, bonds and IPOs with CMC Markets today.
HalifaxOnline
$0
$14.95
Yes
Yes
Yes
Trade US and Australian shares, options, futures and CFDs with no registration fees. Trade 24/7 on your desktop, tablet or smartphone.
Macquarie Online Trading Account
$0
$19.95
Yes
Yes
Yes
Trade Australian shares, ETFs, warrants and mFunds.

Compare up to 4 providers

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.

Picture: Shutterstock

Jacob Joseph

Jacob is a writer and video journalist with finder.com.au. Credit cards, personal loans and savings accounts are his bread and butter, and he likes nothing more helping people understand the sometimes overly complex world of personal finance.

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