Australians Seek Financial Independence – Report

The priorities of Australians have changed, with financial independence now the nation’s most common aspiration, according to a new report.

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Insignia Financial’s inaugural Financial Freedom Report, commissioned by Insignia and conducted by social research agency McCrindle, explores the aspirations of Australians across generations, genders and demographics.

Insignia Financial says that in what appears to be a shift from the past, the most common aspirations held by Australians today are:

• Achieving financial independence (55%)
• Taking regular holidays (50%)
• Maintaining a good work/life balance (45%)
• Home ownership (45%)
• Building a trusted group of family and friends (44%).

The firm says that when it comes down to it, Australians are now more inclined to pursue their dream life (60%), over owning their dream home (40%).

Renato Mota …the report sets some important benchmarks

It says this shift in priorities has manifested at a time when the impacts of Covid and increased cost of living pressures have altered the short-term behaviours of many, forcing three in five Australians (62%) to adjust household spending and budget more.

“When asked if they would be able to maintain their current lifestyle over the next two years, 56% of Australians were not confident this would be possible, compared to the 44% of Australians who strongly or somewhat agreed this would be possible.”

Insignia Financial Chief Executive Officer, Renato Mota, says it’s clear Australians have changed their priorities in life from the traditional dream of owning a home to living their dream lifestyle, which is under pressure from the current economic climate;

He notes the report sets “…some important benchmarks that helps us understand and support the aspirations and dreams of Australians for years to come.” 

…a third of Australians (31%) report receiving no financial literacy education in their childhood…

In other findings, Insignia Financial says a third of Australians (31%) report receiving no financial literacy education in their childhood, with 35% receiving a small amount and only 22% receiving a fair amount.

It states that from a young age, females are at a disadvantage when it comes to financial knowledge and the lack of adequate financial education often impacts their greater financial wellbeing later in life.

Younger females are most likely to report receiving either no, or a small amount, of financial education in their childhood.

The report also notes that despite women being at a disadvantage when it comes to financial knowledge and education, they are working hard to achieve their dreams and are more motivated than men to achieve them (55% are extremely/very motivated to achieve their dreams versus 44% of men).

Unsatisfied with Financial Situation

Meanwhile, three in four Australians would like to do more with their finances, with more than one in five Australians (22%) claiming they are not at all satisfied with their financial situation, and more than half (55%) considering themselves only somewhat/slightly satisfied with the state of their finances.

“In saying this, more than half (58%) of Australians want to manage their money better, with 63% of the population dedicating more focus to increasing their financial knowledge compared to 12 months ago,” the firm says.

May 23, 2023
riskinfo.com.au