Young Australians say owning assets through investment or inheritance is more important than career growth to build wealth.
A nationally representative survey of more than 2,000 Australian workers indicates that many young people no longer believe that working hard and rising through the ranks in their chosen careers is enough to generate long-term financial security.
Amid sluggish long-term wages growth, seven in 10 Generation Zs (aged 18 to 28 years) and Millennials (aged 29 to 44 years) believe acquiring assets is more important than career progression to get ahead financially.
This is well above the national average of 61%.
By comparison, 57% of Generation Xers (aged 45 to 60 years) and 47% of Baby Boomers (aged 61 to 79 years) have the same mindset.
Online trading platform provider, Stake, which conducted the survey in partnership with The Behavioural Architects for its annual Ambition Report, says some Australians see investing as the best way forward because the traditional paths to wealth creation are eroding.
Why are assets more important than income?
About 49% of Millennials, 47% of Gen Zs, and 45% of Gen Xers say their wages do not keep up with inflation and the rising costs of living.
First home ownership remains the key financial goal for Gen Zs and Millennials, but high property prices continue to be a barrier.
Stake says home ownership feels "out of reach" for many Australians, commenting:
The traditional route to financial progress has not been accessible to them – making alternative paths even more important.
The survey also showed that the majority of Gen Zs and almost one in two Millennials feel inheritance is more important than how hard they work.
The data showed 55% of Gen Zs feel this way, and 49% of Millennials agree, compared to 33% of Gen Xers and 19% of Baby Boomers.
Stake commented:
Investing is a key tool for forging a path to financial progress when the old roadmap no longer applies.
What are the favoured investments?
Seven in 10 survey respondents who already own investments have an ASX shares portfolio.
More than 40% own exchange-traded funds (ETFs) and 25% own international shares.
About 8% own listed investment companies (LIC) or trusts and 7% own real estate investment trusts (REITs).
The Ambition Report documented the five most bought ASX shares among Stake traders over the second half of FY25.
They were Fortescue Ltd (ASX: FMG), BHP Group Ltd (ASX: BHP), Droneshield Ltd (ASX: DRO), Zip Co Ltd (ASX: ZIP), and Mineral Resources Ltd (ASX: MIN) shares.
Stake also revealed the five most bought ASX ETFs.
They were iShares S&P 500 AUD ETF (ASX: IVV), Vanguard Australian Shares Index ETF (ASX: VAS), Vanguard MSCI Index International Shares ETF (ASX: VGS), Betashares NASDAQ 100 ETF (ASX: NDQ), and Betashares Diversified All Growth ETF (ASX: DHHF).
