1 in 5 investors put retirement plans on hold

By Grace Ormsby

August 26 2020
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One-fifth of investors aged between 35 and 64 will need to delay their retirement as a result of recent sharemarket performance, the ASX has revealed.

1 in 5 investors put retirement plans on hold

It has released the results from the ASX Australian Investor Study 2020, finding that the extreme volatility and sudden decline in asset values caused by COVID-19 has had a “significant impact” on investors.

While 22 per cent of investors aged 35 to 64 will be delaying their retirement, more than half of all investors surveyed said they had made changes to their portfolios between March 2020 and May 2020 in an attempt to offset some of the damage.

While the rise in market activity could be seen as risky, ASX CEO Dominic Stevens said: “It was pleasing to see that the study found that many investors have responded to the crisis by becoming more focused on diversification and risk management, together with the sustainability of returns.”

Sustainability of dividends (36 per cent) and diversification (31 per cent) were the highest rated priorities of investors.

As a result, “there’s a greater focus on building portfolios with long-term goals in mind”.

In spite of the continued presence of volatility, a majority of current investors still see opportunities in the market – the survey revealed a majority of current investors do intend to add new investments to their portfolio in the coming year.

Of those who are planning to invest further, 57 per cent said they would be investing in Australian shares while 28 per cent would be looking at ETFs.

Mr Stevens said the COVID-19 pulse survey combined with the investor study offered “a unique opportunity to test the market during a crisis”.

More than 9 million Australians hold investments outside their home and super, while 6.6 million individuals directly hold exchange-listed investments.

About the author

Grace Ormsby

Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

About the author

Grace Ormsby

Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

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