More and more Australians are experimenting with so-called ‘exotic’ investments such as non-fungible tokens (NFTs) and cryptocurrency. But are they ignoring their most important investment?
New research from super fund Equip shows that many Australians are at risk of being unable to provide for themselves in retirement because they’re ignoring their super in favour of non-traditional types of investments.
Equip surveyed more than 2000 people on their investment habits and found many have become more adventurous in their investment and savings habits since the pandemic.
One in five said they had recently invested for the first time in exchange-traded funds (ETFs), NFTs and cryptocurrency, while 14 per cent said they had increased the amount they invest since the pandemic began.
Equip CEO Scott Cameron says that while it’s encouraging people have more investment options, the study shows many Aussies are ignoring their most important asset – their superannuation.
“While more investment options are emerging, superannuation remains one of the most important financial assets,” he says.
When it comes to super, the survey found people generally fall into one of three categories: those who have no idea how much super they have, those who could name a ballpark figure and those who know how much super they have to the nearest thousand.
“It’s concerning that so many Australians have no idea how much they’ve actually saved after years of hard work,” Mr Cameron says.
“Your super balance will shape your retirement years and the type of lifestyle possible, so it’s important to keep a close eye on its progress – not just towards the end of your working life, but throughout.
Mr Cameron says people’s experiences during the pandemic has spurred them to find new avenues for wealth generation.
But he says these relatively new investment types come with a lot of risk, as shown during the recent cryptocurrency crash.
“Through this research, we’re seeing that there’s been a huge spike in investing since the pandemic. Australians are clearly eager to educate themselves on how to boost their savings and set themselves up for a comfortable future or prepare for the unexpected.
“But this shouldn’t be to the detriment of tried and tested investment products, like super.
“Our concern is Australians are running before they can walk. Think about getting on top of your superannuation before exploring new, and potentially riskier, investment alternatives.”
Have you dabbled in any new investment types recently? Have you had much success? Let us know in the comments section below.
Read also: Average super returns up in January
