Most baby boomers won’t have enough to retire comfortably, according to the warning of property investment adviser Michael Yardney.
Mr Yardney, of Metropole Property Strategists, said the Australian superannuation industry lost $18.5 billion of their clients’ money in the past financial year – and that baby boomers are turning to property to secure their own financial future.
In his blog, Mr Yardney cites a poll that shows that Baby Boomers are retiring, on average, on about $200,000. This compares to the $1 million generally accepted by financial planners as enough to retire comfortably.
According to Mr Yardney, “it's little wonder that more and more Baby Boomers are looking at taking control of their financial future and setting up Self Managed Super Funds (SMSF).”
“Combining the security of bricks and mortar with the tax office changing superannuation regulations back in 2007 so that people can borrow within their own SMSF’s, it is not surprisingly that real estate is becoming an increasingly popular super fund cash cow,” he said.
“Fact is, more and more Australians are recognizing the benefits of property as a strong, stable asset base for their super funds, given its ability to generate excellent returns and capital gains over the long term.”