Aussies losing motivation to build wealth

A Money.com.au survey of 1,010 Australian adults has found that the current economic climate of high inflation and rising interest rates is having a substantial effect on Australians’ motivation to build wealth.

While 11 per cent of respondents don’t feel motivated to earn more at work and 21 per cent are less motivated to save, 23 per cent said they are less motivated to invest.

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Younger Australians (53 per cent) are the least motivated, compared with 46 per cent of 31 to 50-year-olds and 37 per cent of over-50s.

Licensed financial adviser and Money.com.au spokesperson Helen Baker said it is concerning that such a high percentage of the population have become complacent over building wealth.

“Unfortunately, the risk with complacency is that they will form a habit to not save or invest and it can be difficult to get out of this complacency. Individuals will also fall behind on their financial goals as a result. The longer savings and assets fail to grow, the harder it will be to catch up,” Ms Baker said.

“It’s surprising to see that younger individuals aren’t focused on building their wealth. They also risk falling behind those who are — and who will likely have better opportunities and funds for the future, such as for their retirement. In contrast, the return of immigration and a more competitive job market will prove challenging for those who have lost their motivation.”

This follows Findex research released last week that showed an overall apprehension about getting professional wealth advice among young Australians, with just 45 per cent of Gen Zs and 44.7 per cent of Millennials open to using a financial planner in the future.

Instead, younger Aussies — an average of 25 per cent among Gen Z and Millennials — are turning to their peer groups for financial advice or doing their own research (47 per cent).

“This is a wake-up call for the wealth industry to seriously rethink how we engage with younger Australians,” said Findex co-CEO Tony Roussos.

“By financial advisers investing the time to build multi-generational client relationships earlier on, the wealth is hopefully secured and grown over the long term.”