Property investment highlighted as retirement adequacy falls

A recent report from AMP Australia reveals that the nation’s retirement adequacy has fallen to global financial crisis (GFC) levels, underlining the need for a broader approach to wealth accumulation.Released to the public today (September 26), the latest AMP Retirement Adequacy Index dropped two percentage points to 69.4 per cent while projected retirement savings fell seven per cent to $492,000.A decline in voluntary superannuation contributions drove much of these falls, with the percentage of contributions falling to 2006 levels when it first began.AMP financial services managing director Craig Meller said: “The Index shows salary sacrifice contributions have fallen across most age groups, particularly for older Australians who traditionally put more into their superannuation as they approach retirement, but are now restricted by caps on voluntary super contributions or worried about global markets.”During a period of global instability, it may be worth exploring other options for setting yourself up for a comfortable retirement.Real estate and property investment have charged ahead in terms of investment options, with stock trading remaining comparatively unstable.Australia’s economic outlook is quite positive and offers plenty in terms of lucrative property investment options.With stable government finances, low unemployment and a pipeline of foreign investment, conditions are favourable for new real estate ventures – particularly in resource-rich areas like Western Australia and Queensland.Stronger ties with the growing economies of Asia also hold promise for the property investment industry.Increased tourism and commercial opportunities have drawn a greater number of Chinese visitors to Australian shores in the last few years – representing an up-and-coming market of prospective tenants and holiday-makers for the nation’s keen investors.Directing excess income toward a promising real estate investment may prove to be the retirement nest egg you can rely on.