Super funds growing slower than house prices
The net wealth of Australians is determined by considering debt, superannuation adequacy and home ownership, with Roy Morgan figures now showing retirement funding will need to come from a combination of these as house prices continue rising.
Roy Morgan’s ‘Superannuation and Wealth Management in Australia’ report found the total increase in household net worth since 2013 was $2,432 trillion, of which more than half (57 per cent) came from increased equity in owner-occupied homes.
Rather than make up the shortfall, Roy Morgan industry communications director, Norman Morris, said those who did not reside in their own home had lower levels of household net wealth.
“The rapid rise in home values in Australia over the last few years has left those who are not owner occupiers well behind,” he said.
“Household debt, superannuation adequacy, home ownership, direct investments and savings all play a part in understanding the real financial position of Australian households.”
The report found two trends within Australia around household wealth, with owners either paying off their home or not. Within this, the increase in super funds over time had been tracked as slower than the rise of house prices.
“This makes it likely that for some years to come, retirement funding will need to come from household resources outside of superannuation, Morris said.
“Those people not in their own home have not made up for it by investing elsewhere.”
Australians living in owner-occupied homes constitute 65.2 per cent of the population, and hold 85 per cent of the total funds within superannuation, 89.7 per cent of all direct investments, and 86.9 per cent of bank deposits.
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