POWERED BY MOMENTUM MEDIA
Gen Y must adopt long-term saving habits: REST
Contrary to accepted wisdom, members of Generation Y have good short-term saving habits - something that super funds can leverage off to improve member engagement, according to REST chief executive Damian Hill.
A white paper commissioned by REST that surveyed 752 18-35 year olds found that younger people were accruing debt earlier in their lives than previous generations, and were accumulating assets (such as property) later in life.
However, over one-third (36 per cent) of Gen Y do not own a credit card or a store card, and almost 80 per cent report that they are saving some money each month. In addition, 32 per cent of 18-35 year olds are living at home with their parents, leading to a greater ability to save money.
But the good saving habits are usually for a short-term goal such as travel, according to Hill.
"Generation Y could be using the savings they are putting away to make their money work harder for them … they could benefit from taking a longer term attitude to savings, particularly retirement savings," Hill said.
With over 50 per cent of REST's member demographic represented by the people surveyed, Hill said the white paper would allow his fund to "understand our members better so we can serve them well".
Since Generation Y have the basics of saving "down pat", super funds can leverage off that knowledge by looking at more innovative mediums and channels (such as social media and videos) to engage 18-35 year olds, Hill said.
It is also important to increase the financial literacy of Generation Y, he added.
"Education should cover a range of areas, from short-term goals - such as travel - through to how to repay debt as quickly as possible, plan a budget or select a super fund," Hill said.
Recommended for you
Jim Chalmers has defended changes to the Future Fund’s mandate, referring to himself as a “big supporter” of the sovereign wealth fund, amid fierce opposition from the Coalition, which has pledged to reverse any changes if it wins next year’s election.
In a new review of the country’s largest fund, a research house says it’s well placed to deliver attractive returns despite challenges.
Chant West analysis suggests super could be well placed to deliver a double-digit result by the end of the calendar year.
Specific valuation decisions made by the $88 billion fund at the beginning of the pandemic were “not adequate for the deteriorating market conditions”, according to the prudential regulator.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.56 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.06 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.81 3 y p.a(%)
