The ING My Generation report, released today, reveals Australian teenagers have good financial intentions, with many (71 per cent) already considering how much they will need to be financially secure in the future.
The cross-generational research reveals, on average, Gens X, Y and Z think they’ll need between $1.5 million and $1.74 million each in savings (excluding assets) to retire. This is more than double the ASFA recommendation for a standard couple that own their home.
The research also found that financial advisers are the most trusted source for getting financial advice. This is especially the case for Gens Y and Z, with more than half of each generation saying so.
Baby Boomers and Gen X are turning to advisers to help them stay on top of their finances while the younger generations (Gens Y and Z) want assistance with longer-term goals such as family planning, buying a home and retirement.
The average amount Aussies expect to pay for an annual strategic financial plan delivered via face-to-face consultations is as follows:
• Baby Boomers: $315
• Gen X: $232
• Gen Y: $316
• Gen Z: $394
The research also reveals that younger generations (Gens Y and Z) have higher fee expectations for automated online advice tools when compared with Baby Boomers and Gen X, who on average expect to pay less than $85, while Gens Y and Z have indicated a preparedness to pay more than $195.
“Gens X, Y and Z are clearly thinking cautiously about retirement and are under no illusion that you can retire whenever you want without adequate savings,” ING’s head of retail Melanie Evans said.
“However, there seems to be a reluctance to make plans, and this could be because they’re just not sure where they can go for help.”
Research was conducted in July 2018 by Rice Warner with more than 2,000 participants aged 16 to 64.