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
The super fund announced that Gregory has been appointed to its executive leadership team, taking on the fresh role of chief advice officer.
The deputy governor has warned that, as super funds’ overseas assets grow and liquidity risks rise, they will need to expand their FX hedge books to manage currency exposure effectively.
Super funds have built on early financial year momentum, as growth funds deliver strong results driven by equities and resilient bonds.
The super fund has announced that Mark Rider will step down from his position of chief investment officer (CIO) after deciding to “semi-retire” from full-time work.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
76.97 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
76.46 3 y p.a(%)
3
UBS Solactive Global Pure Gold Miners UCITS ETF Dis USD
51.13 3 y p.a(%)
4
Global X GlobalX FANG+ ETF
45.15 3 y p.a(%)
5
Select Baker steel Gold Institutional
43.78 3 y p.a(%)
