investment trends

Peoples’ notion of how they will fund their retirement habitually downplays the role of social security. Reflecting a lack of understanding about how the different income streams interact, it behoves superannuation funds to better educate their members.

Greenwashing is still the biggest barrier to uptake of responsible investment strategies, but this and other challenges the ESG sector are facing now are also signs of a proliferating market that’s just picking up speed.

Approximately a third of SMSF holders under advice will be hurt by the new cap on discounted superannuation balances, the researcher says. A bump in the TBC cap will help some, but add to complexity for advisers.

While advisers are still the first choice for investment advice – especially among the emerging affluent – the needs of Australia’s growing cohort of high-net-worth investors are evolving, as more seek validation of their own investment ideas rather than holistic advice, platform provider Praemium says.

Despite a growth hiccup in 2022 the SMSF sector is trending in the right direction, with more younger people opting for choice in the way they manage their retirement savings.

Recent research reveals high-net-worth investors have reduced slightly in number since last year while accumulating slightly more investable assets, with this cohort taking a “more subdued outlook” for the coming year. Investors’ asset class preference is also evolving to favour defensive investments.

Sentiment around retirement prospects is declining across the board in Australia, with millionaires almost as likely as less affluent investors to believe it would take a miracle to retire securely. Recent reports highlight the correlation between the new economic uncertainty and reduced confidence in a comfortable retirement.

Latest research from Investment Trends shows a weakening in retail investor numbers, with “interest rate rises, market downturn and inflation” all playing a role.