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.

Related News:

“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.


Related Content

Do planners pose a risk to industry funds?

Despite their long-term potential in terms of member demographics, industry funds have cause to be concerned about the potential for members to lured ...more

Industry super funds more satisfying than retail

Satisfaction with industry superannuation was higher than with retail funds over the last three months, according to Roy Morgan’s November Superannu...more

Banks struggle to increase ‘share of wallet’

Bank customers do not want to increase the ‘share of wallet’ with individual banks, but would rather keep their funds diversified across a range o...more




Since 2013? What a superlative piece of data mining but by whom?

Is Roy Morgan looking for credibility and failed or was it data mining from an RM report by the author and they never actually said it?

Add new comment