Tag: Fool

Do you have room in your portfolio for some new ASX shares? If you do, then it could be worth checking out the three listed below.

They have all been named as buys and tipped to generate strong returns over the next 12 months. Here’s what you need to know:

Lovisa Holdings Limited (ASX: LOV)

The first ASX share that could be a buy is fashion jewellery retailer Lovisa.

Morgans is feeling very positive about the company’s outlook and sees it as a great long-term pick due to its global expansion plans.

In fact, the broker has previously suggested that “LOV may just prove to be one of the biggest success stories in Australian retail. LOV is showing every sign of becoming a global brand.”

Morgans has an add rating and $35.00 price target on its shares. This implies potential upside of 9% for investors from current levels. It also expects a ~2.6% dividend yield to sweeten the deal further.

NextDC Ltd (ASX: NXT)

Another ASX share that could deliver big returns for investors is NextDC. It provides colocation services to local and international organisations from its growing collection of world-class Tier III and Tier IV data centre facilities across Australia and the Asia-Pacific.

It has been growing at a rapid rate for many years thanks to the insatiable demand for data centre capacity due to the shift to the cloud. The good news is that the artificial intelligence boom is expected drive a third wave of demand. This bodes well for NextDC’s growth over the next decade.

Morgan Stanley is a big fan of the company. It believes the data centre market will more than double in size by the end of the decade.

As a result, earlier this month it put an overweight rating and $20.00 price target on its shares. This suggests potential upside of almost 14% for investors.

WiseTech Global Ltd (ASX: WTC)

Finally, the team at UBS believes that WiseTech Global could be an ASX share to buy.

It is the logistics solutions company behind the CargoWise One platform. This platform is integral to the global logistics industry and used by all the big players.

In fact, strong demand for the platform from industry giants means WiseTech has been growing at a very strong rate in recent years. The good news is that UBS believes this strong form can continue.

Earlier this month, the broker put a buy rating and $112.00 price target on WiseTech Global’s shares. This implies potential upside of 14% for investors over the next 12 months.

The post 3 high-quality ASX shares tipped to generate strong returns appeared first on The Motley Fool Australia.

More reading

• Here’s how the ASX 200 market sectors stacked up last week
• Forget Nvidia: This ASX growth stock is poised for its own bull run
• These 2 ASX shares could win big time in the long term
• These are the 2 ‘best’ ASX 200 stocks to buy now for the AI megatrend: expert
• 2 highly rated ASX growth shares to buy before it’s too late

Motley Fool contributor James Mickleboro has positions in Lovisa and Nextdc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa and WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool Australia has recommended Lovisa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you are on the lookout for the dream combination of huge gains and a juicy dividend yield, then it could be worth taking a closer look at the ASX All Ords stock in this article.

That’s because the team at Bell Potter believes that this stock could rise more than 30% over the next 12 months.

In addition, the broker is forecasting very attractive 6%+ dividend yields through to 2026.

Which ASX All Ords stock?

The ASX All Ords stock in question is Regal Partners Ltd (ASX: RPL).

It is a specialist alternative investment manager with approximately $12.1 billion in funds under management.

Regal Partners was formed in 2022 following the merger of Regal Funds Management and VGI Partners. It manages a broad range of investment strategies covering long/short equities, private markets, real and natural assets, and credit and royalties on behalf of institutions, family offices, charitable groups, and private investors.

According to the note, Bell Potter has been pleased with the company’s recent performance and feels it could be outperforming expectations in respect to performance fees. It said:

The first four months have shown strong returns for the majority of the funds in the Regal stable. We consider which funds may be generating a performance fee, both by performance and size. A recent presentation from Regal (23 May) notes that 72% of FUM is at, or within 5% of HWM, compared to 54% at December. The implication is that H1 will show strong performance fees.

We consider six of Regal’s funds and show year to date performance, fund or strategy size and attempt to estimate the size of performance fee that RPL could be generating. We estimate that from these six funds alone RPL could generate performance fees of around $55m (compared to our forecasts of $38m) with particularly strong contributions coming from the PM Capital Global companies, the Regal Australian Small Companies, Regal Tactical Opportunities and RF1 (- which including reinvestment of income is now back above its HWM). Across the entire stable of funds, we could expect the figure to be higher.

Big returns

The note reveals that Bell Potter has reaffirmed its buy rating on the ASX All Ords stock with an improved price target of $4.02.

Based on its current share price of $3.07, this implies potential upside of 31% for investors over the next 12 months.

In addition, the broker is forecasting fully franked dividends per share of 19.7 cents in FY 2024, 18.9 cents in FY 2025, and 21.7 cents in FY 2026. This equates to above-average dividend yields of 6.4%, 6.15%, and 7.1%, respectively.

Overall, the broker feels the market is undervaluing this ASX All Ords stock. It concludes:

As a result of these updates, our NPAT and adjusted EPS forecasts increase by 21.9% for FY24, 3.2% for FY25 and 2.5% for FY26. We adjust our price target to $4.02 (from $3.86 previously). We continue to favour RPL, given its strong organic & inorganic growth potential, and entrepreneurial culture. Following the acquisition of PM Capital and Taurus (50%) last year, the firm has shown an acceleration of inflows, strong investment performance and success in marketing new funds. We feel this strong performance is not reflected in the share price and see considerable upside.

The post Buy this ASX All Ords stock for a 30% gain and 6% dividend yield appeared first on The Motley Fool Australia.

More reading

• 1 popular ASX 200 share I wouldn’t touch with 2 bargepoles!
• 3 high-quality ASX shares tipped to generate strong returns
• Should you buy, hold, or sell this ASX 200 bank stock?
• 2 ASX dividend stocks to buy in June
• Here is the latest lithium price forecast through to 2027

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Bendigo and Adelaide Bank Ltd (ASX: BEN) shares have been on form in 2024.

Since the start of the year, the ASX 200 bank stock has risen almost 13%.

To put this into context, a $10,000 investment at the end of last year would now be worth approximately $11,300.

As a comparison, the benchmark ASX 200 index has climbed 1.8% over the same period.

But can this strong run continue or have its shares peaked? Let’s see if Bendigo and Adelaide Bank’s shares are now a buy, hold, or sell.

Where next for this ASX 200 bank stock?

According to a note out of Goldman Sachs this morning, its analysts are calling time on this bank stock’s rise.

The note reveals that the broker has reiterated its neutral rating and $10.51 price target on its shares.

Based on the current Bendigo and Adelaide Bank share price of $10.89, this implies potential downside of 3.5% over the next 12 months.

What did the broker say?

Goldman notes that the ASX 200 bank stock recently held its investor day event.

At the event, the bank reiterated its target of improving its return on equity (ROE) to above its cost of capital. The broker said:

While quantitative detail was lacking in relation to how BEN would seek to improve its ROE to being above its cost of capital, management believes i) improvements would be driven both by higher revenues and lower expenses, and ii) operating expenses will be managed at or below inflation levels.

Our Macro team currently forecasts average annual inflation of 2.8% over the four years to Jun-27. Assuming cost growth in line with inflation, FY27E GS revenues would need to be 13% higher than current GSe to reach a 50% CTI, and would translate to a 31% rise in PPOP. For Visible Alpha (VAe) consensus, FY27E revenues would need to be 17% higher, and would translate to a 41% rise in PPOP.

Neutral rating

Overall, the broker hasn’t seen anything in the investor day update to justify a more positive recommendation on the ASX 200 bank stock. It summarises:

Until we see more evidence that the company can deliver a sustained improvement in its ROE, we are reticent to capitalise the material upside to PPOP that a 50% CTI would deliver to shareholders. Therefore, with the stock implying -3% downside to our A$10.51 target price, in the middle of our A&NZ coverage, we reiterate our Neutral recommendation.

The post Should you buy, hold, or sell this ASX 200 bank stock? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• Hoping to retire? I’d buy these ASX 200 dividend shares for passive income
• ASX 200 bank shares: How dividends offset poor capital growth over 10 years
• Guess which ASX 200 mining giant could crash 30%
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has positions in and has recommended Bendigo And Adelaide Bank. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

With a new month on the horizon, what better time to consider making some new additions to your income portfolio.

But which ASX dividend stocks could be buys in June? Let’s take a look at two that analysts are bullish on right now. Here’s what they are saying about these income options:

Cedar Woods Properties Limited (ASX: CWP)

The team at Morgans thinks income investors should be buying this ASX dividend stock in June. It currently has the property company on its best ideas list with an add rating and $5.60 price target on its shares.

In respect to dividends, the broker has pencilled in dividends per share of 18 cents in FY 2024 and then 20 cents in FY 2025. Based on the current Cedar Woods Properties share price of $4.46, this will mean dividend yields of 4% and 4.5%, respectively.

Morgans thinks that the company’s shares are cheap and deserve to trade on higher multiples. Particularly given its improving outlook. It said:

CWP is a volume business and the demand for lots looks to be improving, with margins to invariably follow. CWP’s exposure to lower priced stock in higher growth markets sees further potential to drive earnings. On this basis, we see every reason for CWP to trade at NTA and potentially at a premium, were the housing cycle to gain steam through FY25/26.

Challenger Ltd (ASX: CGF)

Over at Goldman Sachs, its analysts think that this annuities company could be an ASX dividend stock to buy. The broker currently has a buy rating and $7.50 price target on its shares.

As for income, the broker is forecasting fully franked dividends of 26 cents per share in FY 2024, 27 cents per share in FY 2025, and then 28 cents per share in FY 2026. Based on the current Challenger share price of $6.62, this will mean dividend yields of 3.9%, 4.1%, and 4.2%, respectively.

Commenting on its bullish view, the broker said:

CGF is Australia’s largest retail and institutional annuity provider across Term and Lifetime annuities with a funds management business. We are Buy rated on the stock. We like CGF because: 1) it has exposure to the growing superannuation market across Life and Funds Management; 2) higher yields should drive a favorable sales environment for retail annuities as well as an improvement in margins; 3) its annuity book growth looks well supported through a diversified distribution strategy.

The post 2 ASX dividend stocks to buy in June appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• Morgans says these ASX stocks can rise 20% (and pay big dividends!)
• Looking for ASX All Ords shares to buy? Top broker reveals 4 best ideas this month

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has recommended Challenger. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It certainly has been a tough 12 months for ASX lithium stocks.

During this time, the likes of Arcadium Lithium (ASX: LTM), Core Lithium Ltd (ASX: CXO), IGO Ltd (ASX: IGO), Liontown Resources Ltd (ASX: LTR), and Pilbara Minerals Ltd (ASX: PLS), Sayona Mining Ltd (ASX: SYA) have all recorded sizeable declines while the market as a whole has charged higher.

For example, Core Lithium and Sayona Mining shares are both down around 80% since this time last year, whereas IGO and Liontown shares have lost approximately half of their value over the same period.

Investors have been hitting the sell button in response to falling lithium prices. This has been driven by increasing supply of the white metal, particularly in the China market.

But where next for lithium prices? Will they recover to previous levels in the near future? Let’s take a look and see what analysts at Goldman Sachs are forecasting for three widely used lithium types – lithium carbonate, lithium spodumene, and lithium hydroxide.

Lithium prices

Firstly, let’s have a little reminder of what lithium prices were commanding on average in 2023.

• Lithium carbonate – China: US$32,694 per tonne
• Lithium hydroxide – China: US$32,452 per tonne
• Spodumene 6%: US$3,712 per tonne

Now we will take a quick look at the current spot prices of these metals compared to what they were commanding back in January. The current prices are as follows:

• Lithium carbonate – China: US$13,012 per tonne (January: US$11,867)
• Lithium hydroxide – China: US$9,591 per tonne (January: US$9,899)
• Spodumene 6%: US$1,210 per tonne (January: US$1,000)

Forecasts through to 2027

Unfortunately for investors of ASX lithium stocks, Goldman Sachs is not expecting a big improvement in lithium prices in the coming years.

Lithium carbonate – China:

For lithium carbonate, the broker is forecasting the following through to 2027:

• 2024: US$11.106 per tonne
• 2025: US$11,000 per tonne
• 2026: US$13,323 per tonne
• 2027: US$15,646 per tonne
• Long-term: US$15,500 per tonne

Lithium hydroxide – China:

It will be a similar story for lithium hydroxide according to the broker. It is forecasting the following:

• 2024: US$9,849 per tonne
• 2025: US$12,500 per tonne
• 2026: US$14,323 per tonne
• 2027: US$16,146 per tonne
• Long-term: US$15,500 per tonne

Spodumene 6%:

Finally, the broker is expecting spodumene prices to remain in and around current levels for the foreseeable future. It has pencilled in the following for the coming years:

• 2024: US$928 per tonne
• 2025: US$800 per tonne
• 2026: US$978 per tonne
• 2027: US$1,155 per tonne
• Long-term: US$1,150 per tonne

The post Here is the latest lithium price forecast through to 2027 appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• Guess how much a $3,000 investment in Liontown shares ballooned to in just one month
• ASX 200 shares vs. property: Which has performed better since the COVID crash?
• Why did the Sayona Mining share price just leap 5%?
• This top broker says the Pilbara Minerals share price is going to crash 35%

Motley Fool contributor James Mickleboro own Arcadium Lithium shares. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The share market has historically generated an average total return of 10% per annum.

While this is a great return, if you look hard enough you might find some ASX growth shares with the potential to outperform materially.

Let’s take a look at a couple of shares that have been tipped to smash the market:

Life360 Inc (ASX: 360)

This location technology company’s shares have been on fire this year. So much so, the ASX growth share has doubled in value year to date.

Despite this, a number of analysts believe that Life360’s shares still have the potential to deliver market-beating returns over the next 12 months, even if buying at current levels.

One of those brokers is Bell Potter, which currently has a buy rating and $17.75 price target on its shares. This implies potential upside of 18% for investors between now and this time next year.

Bell Potter believes the ASX growth share has the potential to rerate to higher multiples thanks to its strong growth and the valuations of peers. It said:

We have increased the multiple we apply in the EV/Revenue valuation from 5.5x to 6.5x given the proposed US listing and potential re-rating of the stock given the higher multiples of comps like Reddit (NYSE: RDDT). There is, however, no change in the 9.3% WACC we apply in the DCF. The net result is a 9% increase in our PT to $17.75 which is >15% premium to the share price so we maintain our BUY recommendation. Key potential catalysts for the stock include another strong quarter of paying circle growth in Q2 (April was another good month), a potential upgrade to the 2024 guidance sometime in H2 and a US listing at some stage in the next 12 months.

Tyro Payments Ltd (ASX: TYR)

Another ASX growth share that could deliver market-beating returns according to analysts is Tyro Payments.

It is a growing payments provider with around 70,000 merchants on its network. This makes it Australia’s fifth largest merchant acquiring bank by number of terminals in the market, behind only the big four banks.

Morgans is a fan of the company and has an add rating and $1.47 price target on its shares. This suggests potential upside of 69% for investors over the next 12 months. The broker commented:

TYR sold off heavily in 2023 affected by the broad pull back in technology stocks and overall concerns regarding its earnings trajectory. However, we believe FY24 will show significantly improved business momentum, importantly driven by a much greater focus on lifting overall profitability. TYR still trades at a significant discount to valuation.

The post 2 ASX growth shares with legit potential to outperform the market appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Top brokers name 3 ASX shares to buy next week
• Brokers name 2 rapidly growing ASX 200 tech stocks to buy
• Leading brokers name 3 ASX shares to buy today
• Why Bellevue Gold, IPH, Life360, and Ramelius Resources shares are racing higher

Motley Fool contributor James Mickleboro has positions in Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360 and Tyro Payments. The Motley Fool Australia has recommended Tyro Payments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

On Friday, the S&P/ASX 200 Index (ASX: XJO) ended the week deep in the red. The benchmark index sank 1.1% to 7,727.6 points.

Will the market be able to bounce back from this on Monday? Here are five things to watch:

ASX 200 expected to rebound

The Australian share market looks set to rebound on Monday following a strong finish on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 47 points or 0.6% higher. On Friday in the United States, the Dow Jones was up slightly, the S&P 500 rose 0.7%, and the Nasdaq jumped 1.1%.

Oil prices rise

ASX 200 energy shares such as Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a good start to the week after oil prices climbed on Friday. According to Bloomberg, the WTI crude oil price was up 1.1% to US$77.72 a barrel and the Brent crude oil price was up 0.9% to US$82.12 a barrel. This was driven by optimism over rising demand as the summer driving season gets underway in the Northern Hemisphere.

Lendlease asset sale rumours

The Lendlease Group (ASX: LLC) share price will be on watch today amid rumours the global property company is about to make a big announcement. According to the AFR, Lendlease intends to end all international property development and sell its overseas construction divisions. The latter will see the company reportedly offload over $4 billion worth of assets, mostly in the United States and United Kingdom.

Gold price softens

ASX 200 gold mining shares including Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a soft start to the week after the gold price edged lower on Friday. According to CNBC, the spot gold price was down 0.1% to US$2,356.9 an ounce. Rate cut doubts weighed on the precious metal.

Bendigo and Adelaide Bank rated neutral

The Bendigo and Adelaide Bank Ltd (ASX: BEN) share price is fully valued according to analysts at Goldman Sachs. This morning, the broker has retained its neutral rating with a $10.51 price target. This is a touch lower than where the regional bank’s shares currently trade. It said: “Until we see more evidence that the company can deliver a sustained improvement in its ROE, we are reticent to capitalise the material upside to PPOP that a 50% CTI would deliver to shareholders. Therefore, with the stock implying -3% downside to our A$10.51 target price, in the middle of our A&NZ coverage, we reiterate our Neutral recommendation.”

The post 5 things to watch on the ASX 200 on Monday appeared first on The Motley Fool Australia.

More reading

• Here’s how the ASX 200 market sectors stacked up last week
• Hoping to retire? I’d buy these ASX 200 dividend shares for passive income
• Here are the top 10 ASX 200 shares today
• Why ASX 200 investors shouldn’t expect interest rate cuts until 2025
• Global companies just paid a record $512 billion in Q1 dividends. Here’s how ASX 200 shares stacked up

Motley Fool contributor James Mickleboro has positions in Woodside Energy Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has positions in and has recommended Bendigo And Adelaide Bank. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

At the start of each week, I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Pilbara Minerals Ltd (ASX: PLS) continues its long run as the most shorted ASX share with short interest of 21.2%. This is down slightly week on week. It appears that short sellers are not expecting lithium prices to recover any time soon.
• IDP Education Ltd (ASX: IEL) has 16.7% of its shares held short, which is up week on week. Short sellers have been targeting this language testing and student placement company due to student visa changes in a number of key markets. They may believe that this will lead to IDP falling short of expectations.
• Syrah Resources Ltd (ASX: SYR) has short interest of 13%, which is down slightly week on week. This graphite miner has been battling weak battery materials prices and burning through its cash reserves.
• Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest rebound week on week to 11.6%. Short sellers are not being put off by Flight Centre recently revealing that it expects record sales in FY 2024.
• Liontown Resources Ltd (ASX: LTR) has 9.9% of its share held short, which is down week on week again. Short sellers have been closing positions this month after Liontown made good progress with its Kathleen Valley Lithium Project.
• Australian Clinical Labs Ltd (ASX: ACL) has returned to the top ten with short interest of 9.3%. This pathology services company is guiding to another sharp decline in earnings in FY 2024.
• Sayona Mining Ltd (ASX: SYA) has short interest of 9.1%, which is up sharply week on week. This lithium miner is burning through cash at present by spending more to produce its lithium than it receives for it.
• Westgold Resources Ltd (ASX: WGX) has short interest of 8.8%, which is up for a third week in a row. Short sellers appear unsure about the gold miner’s plan to merge with Canada-based Karoa Resources.
• Chalice Mining Ltd (ASX: CHN) has short interest of 8.3%, which is up week on week. Short sellers continue to target the mineral exploration company despite the favourable Federal Budget.
• Core Lithium Ltd (ASX: CXO) has short interest of 7.8%, which is flat week on week. Core Lithium has been forced to suspended mining activities to conserve cash due to weak prices.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

More reading

• 4 super ASX 200 blue chip shares to buy
• Guess how much a $3,000 investment in Liontown shares ballooned to in just one month
• ASX 200 shares vs. property: Which has performed better since the COVID crash?
• Why did the Sayona Mining share price just leap 5%?
• This top broker says the Pilbara Minerals share price is going to crash 35%

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Idp Education. The Motley Fool Australia has recommended Flight Centre Travel Group and Idp Education. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The average age at retirement among Australia’s existing 4.2 million retirees in FY23 was 56.9 years, according to new figures from the Australian Bureau of Statistics (ABS).

However, the average age at which most people intend to hang up their boots is 65.4 years.

If we dig a little deeper, we find that the average age at which people intend to retire differs between industries.

Let’s find out more.

Average age of retirement in Australia

The ABS Retirement and Retirement Intentions report reveals that 130,000 people retired in 2022.

The average age of those 130,000 new retirees was 64.8 years. For men, the average age was higher at 66.9 years. For women, it was lower at 63.2 years. 

Women typically take up retirement sooner than men, however it seems they are doing so a bit later now.

In FY21, the average age of the entire female retiree community was 54 years. This had increased to 54.7 years by FY23.

Men are also retiring a bit later. The average age of all male retirees in FY21 was 59.3 years, and in FY23, it was 59.4 years.

Top 3 reasons for retirement

Over the next five years, 710,000 Australians intend to retire, and 226,000 intend to do so over the next two years.

Australians’ motivations for retirement differ, and two of the three top reasons are beyond their control.

The most common reason for choosing retirement was access to financial support (31% of respondents).

This includes reaching retirement age, which is the age at which Australians are eligible to receive the age pension. Currently, it’s 67 years old. Either that or becoming eligible to access their superannuation (i.e., reaching or being older than their preservation age).

Preservation ages vary depending on when a person was born. For those born after 30 June 1964, it’s 60 years.

Currently, the age pension is the main income source for most Australians in retirement. Superannuation is the second most common main income source.

Bjorn Jarvis, ABS head of labour statistics said:

In 2022-23, a Government pension or allowance was still the main source of personal income at retirement for 43 per cent of retirees. This was followed by Superannuation, an annuity or private pension at 27 per cent.

The second most common reason for retirement was sickness, injury or disability (13% of respondents).

The third most common was being retrenched, dismissed or not being able to find employment (5%).

Other reasons included to care for an ill, disabled or elderly person (4% of women and 3% of men).

How does the average age of retirement vary across industries?

People working in agriculture, forestry and fishing have the highest intended age of retirement of 68.3 years. This is followed by those working in real estate at 67.1 years and manufacturing at 66.1 years.

At the other end of the scale, mining workers have the earliest intended age of retirement at 63.7 years.

Information media and telecommunications workers are next at 64 years, then financial and insurance services workers at 64.3 years.

Average superannuation balance at retirement

The average superannuation balance of Australians aged 65 to 69 years is $428,738, according to the Australian Taxation Office. The median balance is $207,540.

The average superannuation balance for men is $453,075 and the average for women is $403,038. The median for men is $213,986 and the median for women is $201,233.

According to the AFSA Retirement Standard, these amounts plus a part pension are more than enough to fund a modest retirement lifestyle for homeowners.

ASFA defines a modest lifestyle as having money for daily essentials, basic health cover, and occasional leisure activities.

To fund a modest lifestyle, both singles and couples need $100,000 in superannuation at age 67, plus a part-pension, to cover annual living expenses of $46,944 for couples and $32,666 for singles.

The post What’s the average age of retirement in Australia? appeared first on The Motley Fool Australia.

More reading

• ‘All-growth’ superannuation funds return nearly 10% in 10 months
• 2 no-brainer ASX 200 shares to buy next week
• Here’s how the ASX 200 market sectors stacked up last week
• Are AMP shares a significantly underrated buy right now?
• Analysts say these small cap ASX shares can deliver big returns

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Superannuation funds focused on growth investments are delivering the best returns for investors in FY24.

A new report from research, data, and analytics provider Chant West shows ‘all growth’ superannuation funds have returned 9.8% over the 10 months ending 30 April within the 2024 financial year (FY24).

All growth funds invest 96% to 100% of funds in growth assets such as ASX shares and international shares.

The next best performer is ‘high-growth’ superannuation funds, with 81% to 95% of monies invested in growth assets. They’re sitting on returns of 8.4% in FY24 to 30 April.

Chant West says median ‘growth’ superannuation funds, which comprise 61% to 80% growth assets, have returned 6.9% over the first 10 months of FY24.

Balanced funds, which invest 41% to 60% of monies in growth assets, have earned 5.7% returns.

Conservative funds, with just 21% to 40% in growth assets, have delivered a more modest 4.2% return on investment.

Balanced and conservative funds have more exposure to defensive assets such as cash and bonds. They are popular with investors who are near retirement and, thus, more focused on capital preservation.

Younger workers tend to go for growth fund options because they have longer runways to retirement, and can therefore withstand more volatility and take on more risk for higher returns.

What factors are affecting superannuation returns?

Chant West Senior Investment Research Manager Mano Mohankumar says both shares and bonds fell in April as the likelihood of interest rate cuts by the US Federal Reserve in the first half of 2024 diminished.

Mohankumar said:

Over the month, Australian shares fell 2.9%. International shares slipped 3.2% and 3.3% in hedged and unhedged terms, respectively. Bonds too had a disappointing month as Australian and international bonds fell 2% and 1.7% respectively, as bond yields rose.

However, the big story is the healthy return over the financial year to date, despite all of the uncertainty around inflation and expectations of when the Fed will start cutting rates, not to mention ongoing geopolitical tensions.

Mohankumar said superannuation investors should “put short-term noise aside and focus on the long game”.

He said:

Over the long term, super funds continue to meet their return and risk objectives and our estimate of 8% for FY24 puts super funds on pace for a 13th positive return out of 15 years.

If you’re thinking of boosting your superannuation with extra funds before the end of the financial year, Vanguard Australia provides 5 tips on how to get more money into your super by 30 June.

As we recently covered, there were two changes to superannuation in the recent Federal Budget.

The post ‘All-growth’ superannuation funds return nearly 10% in 10 months appeared first on The Motley Fool Australia.

More reading

• 2 no-brainer ASX 200 shares to buy next week
• Here’s how the ASX 200 market sectors stacked up last week
• Are AMP shares a significantly underrated buy right now?
• Analysts say these small cap ASX shares can deliver big returns
• Top brokers name 3 ASX shares to buy next week

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.