Superwatch: Kiwis banking on home sales for comfortable retirement
AMP's first Superwatch survey reveals half of New Zealanders are planning to sell their homes when they retire.
Monday, November 27th 2000, 9:38AM
AMP Superwatch asked: Which of the following are you currently saving for?
Paying off your house/mortgage. Superannuation/retirement. Travel or holidays. You own or your children’s education. A new car. Setting up or investing in own business. Deposit for a home purchase. None.
49% of respondents are currently saving for their retirement. However, only 33% of respondents earning under $50k per annum were saving for their retirement. This compares to 60% of those earning over $50k. However, 37% of those earning under $50k per annum were saving for holidays/travel abroad. This under $50k group will obviously contain a considerable proportion of under 35s.
Only 31% of respondents under 34 are saving for their retirement, as opposed to 44% saving for travel or holidays.
67% of 35-49 year olds are saving for their retirement. They are also saving to pay of their mortgages (66%), travel/holidays (35%), their own of children's education (46%), setting up or investing in own business (20%). So there are many areas competing for their share of wallet.
59% of 50-64 year olds are saving for their retirement. This group is the most focused on saving for their retirement. However, 28% are still saving to pay off their mortgage, and 39% for travel/holidays.
|
|
|
Income |
Age |
||||
|
Currently Saving For |
% |
% |
% |
% |
% |
% |
% |
|
Superannuation/retirement |
49 |
33 |
60 |
31 |
67 |
59 |
24 |
|
Paying off your house/mortgage |
42 |
36 |
51 |
34 |
66 |
28 |
5 |
|
Travel or holidays |
39 |
37 |
43 |
44 |
35 |
39 |
36 |
|
Your own or your children’s education |
32 |
28 |
37 |
32 |
46 |
13 |
12 |
|
A new car |
14 |
11 |
15 |
19 |
11 |
6 |
17 |
|
Setting up or investing in own business |
14 |
11 |
17 |
13 |
20 |
9 |
- |
|
A deposit for a home purchase |
14 |
17 |
14 |
27 |
10 |
3 |
2 |
|
None |
11 |
17 |
4 |
10 |
3 |
18 |
41 |
|
Don’t know |
1 |
1 |
- |
1 |
- |
- |
- |
|
|
|
Income |
Age |
||||
|
Priority For Saving |
% |
% |
% |
% |
% |
% |
% |
|
Paying off your house/mortgage |
39 |
34 |
45 |
31 |
61 |
23 |
5 |
|
Superannuation/retirement |
35 |
25 |
42 |
17 |
47 |
58 |
21 |
|
Travel or holidays |
26 |
28 |
26 |
33 |
17 |
27 |
33 |
|
Your own or your children’s education |
22 |
22 |
22 |
23 |
29 |
9 |
10 |
|
A deposit for a home purchase |
11 |
13 |
11 |
24 |
5 |
3 |
- |
|
Setting up or investing in own business |
8 |
7 |
9 |
9 |
9 |
6 |
- |
|
A new car |
6 |
7 |
5 |
12 |
2 |
3 |
10 |
AMP Superwatch asked: What are you currently doing to save for your retirement?
47% of respondents said they had a formal long term super savings plan. This differed greatly across age groups from 35% of 18-34 year olds, to 61% of 35-49 year olds and 50% of 50-64 year olds.
The next most popular option was paying off the mortgage (45%) of respondents. As would be expected this varied across the age breaks considerably.
33% of the sample were using a bank or term deposit to save for their retirement. This was the preferred option for over 65's with 45% of them saying they were using a bank/term deposit. It was also a popular option for the 50-64 age group at 51%.
31% of respondents said they were investing in shares to save for their retirement. 50-64 year olds were the most likely group to use this option at (49%).
Only 18% of respondents were investing in additional residential property to save for their retirement. This compares to 17% investing in Unit Trusts and 17% investing in their own business.
17% of respondents were doing none of the options we prompted on. Including 31% of 18-34 year olds and 23% of those earning under $50k.
|
|
Income |
Age |
|||||
|
Currently Doing To Save for Retirement |
% |
% |
% |
% |
% |
% |
% |
|
Paying off the mortgage on your home |
45 |
39 |
53 |
34 |
66 |
37 |
12 |
|
Have a formal, long term superannuation savings plan |
47 |
34 |
57 |
35 |
61 |
50 |
31 |
|
Bank or term deposit investments |
33 |
30 |
34 |
17 |
37 |
51 |
45 |
|
Investing in shares |
31 |
22 |
39 |
21 |
34 |
49 |
33 |
|
Residential property other than your own home |
18 |
12 |
22 |
15 |
18 |
24 |
12 |
|
Unit trust investments |
17 |
11 |
22 |
11 |
20 |
23 |
17 |
|
Investing in your own business |
17 |
14 |
18 |
9 |
28 |
19 |
2 |
|
None |
17 |
23 |
9 |
31 |
3 |
12 |
29 |
|
Don’t know |
1 |
2 |
- |
- |
1 |
- |
7 |
AMP Superwatch asked: Do you anticipate selling your family home and moving to a smaller home when you retire?
- 38% said no.
- 13% were unsure.
This statistic is relatively constant across all income and age bands, except people aged over 65, 24% of who intend to sell, 41% don't intend to sell and 36% don't know.
|
|
|
Income |
Age |
||||
|
Intend to Sell Family Home when Retire |
% |
% |
% |
% |
% |
% |
% |
|
Yes |
50 |
47 |
52 |
52 |
56 |
44 |
24 |
|
No |
38 |
38 |
38 |
32 |
39 |
46 |
41 |
|
Don’t know |
13 |
15 |
10 |
16 |
5 |
10 |
36 |
AMP Superwatch asked: Do you expect to make a profit on the sale when retire?
83% expect to make a profit.
Those aged 50 to 64 aren’t so confident, as only 74% said they expected to make a profit.
|
|
|
Income |
Age |
||||
|
Expect to Make a Profit on the Sale of Family Home |
% |
% |
% |
% |
% |
% |
% |
|
Yes |
83 |
83 |
84 |
82 |
87 |
74 |
80 |
|
No |
13 |
14 |
13 |
11 |
12 |
21 |
20 |
|
Don’t know |
4 |
3 |
3 |
7 |
1 |
6 |
- |
AMP Superwatch asked: Do you expect to use the profit from the sale to help fund your retirement?
Of those who expect to make a profit on the sale 81% expect it to help fund their retirement. Except those aged 50 to 64 years, where only 60% expect this profit to help fund their retirement.
|
|
|
Income |
Age |
||||
|
Use Profit from Sale of Family Home to Fund Retirement |
% |
% |
% |
% |
% |
% |
% |
|
Yes |
81 |
79 |
79 |
80 |
89 |
60 |
75 |
|
No |
19 |
19 |
21 |
19 |
12 |
40 |
25 |
|
Don’t know |
1 |
1 |
- |
1 |
- |
- |
- |
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