Over the past three months, Australians have been focusing more on paying off their debt and boosting their savings than on investing in shares, research by MLC has found.
According to the results of MLC’s Wealth Sentiment Survey – which comprised responses from 2,100 Australians in the final quarter of 2015 – Australians adopted a “conservative” approach to their investments during this period.
In fact, only 8 per cent said they had added to their super, while 7 per cent purchased shares and just 3 per cent purchased an investment property.
“Overall, Australians invested less in most asset classes in Q4, except when it came to paying down their debts,” a report from MLC said.
“While the majority of Australians said they increased the amount they held in savings/deposits accounts in Q4, around -4 per cent (net) also said they added less than in the three months prior.
“In contrast, almost 5 per cent of Australians (net) said they allocated more to paying down debt, while the amount invested in shares was broadly unchanged,” the report said.
The survey also found that that one in five Australians expects to invest less overall in the next three months.
“Specifically, more than 1 in 10 plan to invest ”a lot less” while 9 per cent plan to invest ”a little less”, the report said.
“In contrast, 1 in 10 Australians plan to invest “a little more” and only 2 per cent expect to invest “a lot more”. Around 54 per cent expect to invest about the same.”
“More high income earners expect to increase the amount they invest in the next three months when compared to low income earners, while more low income earners are planning to invest less,” it said.