According to a customer insights study from automated investment service Six Park, 36.5 per cent of its clients are using the service to boost wealth outside of super while 28.6 per cent use it to grow their retirement savings.
Both these goals scored higher than saving for property, a wedding or a holiday, and Australians under the age of 45 were most likely to be focusing on long-term savings goals.
“It’s very encouraging to see younger people be more engaged with their long-term savings activities, especially in the 18-24 age bracket,” Six Park chief executive Pat Garrett said.
“It’s no surprise that the younger demographic is embracing technology in financial services, and these results demonstrate that these clients understand that investing is not about getting rich quick or timing the market – it’s about creating wealth over time through intelligent investment diversification and keeping fees low.”
Continuing, he suggested concerns around fees, transparency and returns are likely heightened by revelations made the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.
Across all age groups, prospective returns (23.3 per cent), volatility (16.7 per cent), trust and transparency (13.3 per cent), and trouble investing in property (13.3 per cent) were the main concerns.
Women were most likely to be concerned about property investment in the near-term (25 per cent), compared with 10 per cent of male respondents.
Men were also more likely to regularly check their portfolios, with more than half checking in weekly or even daily. Half of female respondents check it once a month, on average.
Mr Garrett said this finding aligns with evidence that female investors are more likely to focus on long-term goals.
He elaborated, “An analysis of more than 8 million clients by Fidelity in 2017 suggested that women outperform men when it comes to generating a return on their investment, so this client feedback is not surprising. We’re very pleased to see more women using robo-advice as a smart way to build their saving.”