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Millennials pinching the pennies, says report

by Killian Plastow7 minute read
The Adviser

Almost half of Australians in their 20s added to their savings in the March quarter, according to a new survey by a major bank-owned wealth management company.

MLC’s latest Wealth Sentiment Survey found 42 per cent of Australians in the 18 to 29-year-old age bracket grew their savings in the first quarter of 2016 – a considerably larger percentage than other age groups.

Twenty-nine per cent of the 30 to 49 bracket reported increases to their savings, with only 21 per cent of the over-50s seeing any increase.

The March quarter also saw an increase in the number of Australians hoping to invest more money in the next quarter, rising three points on MLC’s Investment Intention Index.

While this is a positive sign, the index currently sits at -5, with the number of people planning top cut back the amount they invest still outweighing those looking to increase.

The survey also noted that those in younger age brackets are the most likely to invest more in the next quarter, with members of older age brackets looking to “take a conservative approach”, prioritising debt consolidation and superannuation instead.

Retirement savings were reported to be a “pressing issue” across the board, with the average Australian expecting to retire with savings of $450,000, down $50,000 on last quarter.

[Related: Investors saving for years to buy a property]

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