The Ambition Report

We've looked at the motivations and strategies of people who are proactively taking action to grow their wealth in Australia and New Zealand. Here are the findings.

Since last year’s report, our economy has continued to see slow growth, high inflation and several rate hikes. Australia has had a per-capita recession and New Zealand fell back into full recession in March.

Yet it’s been a positive time for many investors. The U.S. and Australian share markets have seen strong gains, while property prices have recovered in Australia and held up in New Zealand.

As wages struggle to keep up with the price of goods and housing, how is this scenario affecting people’s approach towards financial ambition and what does it mean for their future?

Wealth over hustle

Investors are increasingly focused on owning  assets like stocks and property, as these continue  to appreciate faster than wages. When asked if what  you own is more important than how hard you work  in Australia today, almost twice as many respondents agree, rather than disagree.

Themes of financial freedom and lifestyle flexibility  are rated higher than status symbols like impressive job titles, luxury items or being a business owner.
When defining financial success, investors say being debt free, home ownership and living in their chosen area are the three most important factors.

Generation postponed

6 in 10 believe that the intergenerational wealth gap is holding young people back.

A similar number think others are increasingly relying on inheritance to reach financial security, though only a minority have received such assistance themselves. This is compelling younger investors to take action, and they’re maintaining their investment habits at a higher rate than their seniors.

73% of investors surveyed say the growing intergenerational wealth gap is a concern – including  a majority of those aged over 65.

Future-focused

Despite cost of living pressures, investors are cutting back discretionary spending and sacrificing today for tomorrow.

3 in 4 have directed some percentage of their income to investments over the past six months, while prioritising cutbacks across takeaways, restaurants, travel, and clothing, over reductions in investing and saving.

67% of investors have held on to all of their shares over the past 12 months, as they stay focused on the long term.

Close to home

There’s a bias for locally listed equities across ANZ, despite impressive gains in the U.S. and bullish sentiment around AI and EVs – which have a larger representation in that market. But young investors are also more drawn towards U.S. stocks when compared to their seniors, suggesting that this local bias could be slowly shifting.

Australian investors are also accessing the U.S. through the ASX. Three of the top five equities bought on Stake AUS over the same period are ETFs with high exposure to Wall St stocks.

Reclaiming retirement

The most popular overall investment goal is to “retire and live off my investments”. This reveals a proactive approach that investors now deem necessary to securing their financial future. Over 4 in 5 believe that by the time they retire, most people will be working past the age of 65.

Despite concerns over delayed retirement, a significant number of investors (AU: 30% | NZ: 49%) would repurpose their superannuation or KiwiSaver to buy property. This was called out by Australian respondents as the #2 reason for having a self-managed super fund.