Term deposits preferred over super
Term deposits, property, and holidays take the cake when it comes to investor windfall, according to BT Financial Group.
BT's financial health index found 40 per cent of Australians would invest in a term deposit or high interest account following a $100,000 windfall. Just over a third said they would invest in property, and the same for a holiday.
However, only one in five would put the money towards superannuation.
BT Financial Group general manager for superannuation, Melinda Howes, said "many people currently nearing retirement are under-funded — they don't have enough super to last their lifetime".
"Investing an inheritance in super in your 50s or 60s could be what makes the difference between a frugal and a comfortable standard of living in retirement," she said.
The index also found over one in four Australians hold shares, and a similar proportion did not have any investments at all.
Property was the most popular investment for those under 45, and 54 per cent of those aged between 25 and 35 said they would buy property.
"Australians are certainly comfortable investing in cash and short-term savings accounts and term deposits, but the truth is, they are unlikely to reach their superannuation goals with these investments alone," Howes said.
Recommended for you
Ausbil is growing its active ETF range with an ESG product in collaboration with sister company Candriam.
Philanthropic investment group Future Generation’s CEO, Caroline Gurney, will step down from her role at the start of next year.
The newly combined L1 Group is expectant of stabilising Platinum’s falling funds under management within the next 18 months, unveiling four growth pathways and a $330 million equity raise.
Janus Henderson Investors has launched a global small-cap fund for Australian investors, which includes a 5.4 per cent weighting to Australian equities.
