Retirement, extra income, holidays: Top 10 reasons Aussies invest

Some people invest to build wealth for retirement while others are focussed on lifestyle improvements.

Married elderly man and woman in love spending time together on bench on a phone, symbolising retirement.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

New research shows the No. 1 reason Australians invest is to achieve a financially secure retirement in which they can live off the passive income or capital gains generated by their investment assets.

A survey conducted by online trading platform Stake reveals the top 10 motivations for investment among more than 2,000 Australians who currently hold ASX shares or overseas stocks.

A stress-free retirement funded by solid investment returns is at the top of the list.

If you are interested in achieving this via ASX shares and dividend investing, check out this article by my colleague, Sebastian: How much cash do you need to quit work and live off ASX dividend income?

Let's find out the other motivations for investment.

Retirement comes first. What are the other motivations to invest?

The second biggest motivator to invest is to supplement personal income with investment income.

This reflects another survey finding: 46% of investors believe asset ownership is more important than how hard they work in their jobs.

This was a particularly common view among younger respondents aged 18 to 34 years.

The third biggest motivator for investment is funding a holiday or extended travel. This reflects Australians' ongoing love of exploring the world at various stages of life.

Next on the list of motivations is cutting down working hours, followed by buying a home.

CEO of investment platform Pearler, Nick Nicolaides, reckons investing is a new necessity for young aspiring first homeowners trying to save the 20% deposit that most lenders require to grant a home loan.

Nicolaides said (courtesy Weekend Australian):

[Young Australians] understand that if they're going to eventually get into property, if that's what they want, then being an investor in shares is part of the ladder.

It just has to be these days, when it's taking 10 years or more to build a deposit.

One reason it takes so long to save a deposit is that Australian property values typically rise faster than wages.

On top of that, even the most frugal spender would find it difficult to save at the same pace as recent home price growth.

For example, in FY24, the median home value rose by $59,000, according to CoreLogic data.

What else is motivating Aussies to invest?

A secure retirement may be a big long-term aspiration, but some investors have shorter-term goals, too.

The Stake survey shows some Australians see investment as a way of supporting their physical and mental health. That was the sixth most important motivation for investment.

The No. 7 motivator was gathering enough money to start and support a family. This indicates investors may not consider their salaries enough to enable them to start a family at a time of their choosing.

This is an important insight given Australia's falling fertility rate, which has a direct impact on the health of our economy. In 2022, the fertility rate was 1.63 births per woman, according to the latest figures from the Australian Bureau of Statistics (ABS). That's well below the replacement rate of 2.1 babies per woman.

The ABS says women in Australia are tending to have babies later in life and are having fewer of them.

The eighth biggest motivator for investment is upgrading or renovating a home. This is followed by the opportunity to fully pursue a hobby or passion; and buying more consumer goods.

The survey also found that the two most popular definitions of financial success among investors are being debt-free (86% of respondents) and homeownership (85% of respondents).

Both goals are considered essential for a happy and financially secure retirement.

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.

More on Retirement

Couple holding a piggy bank, symbolising superannuation.
Retirement

The best ASX ETFs for retirees in 2025 and beyond

Here are three funds that could be good additions to a balance retirement portfolio.

Read more »

Married elderly man and woman in love spending time together on bench on a phone, symbolising retirement.
Retirement

Aiming for rock-solid retirement income? I'd buy these two ASX shares

I’m reassured by the stability of these two stocks.

Read more »

Smiling elderly couple looking at their superannuation account, symbolising retirement.
Retirement

How to retire early using ASX shares (even when starting late)

It's never too late to start investing.

Read more »

a mature aged couple dance together in their kitchen while they are preparing food in a joyful scene as the Breville share price rises on the back of a 25% profit surge
Retirement

Retirement income: 3 Australian dividend stocks to own for decades

Analysts think these shares could be good picks for retirees.

Read more »

Couple holding a piggy bank, symbolising superannuation.
Retirement

Is $500,000 enough to retire in Australia? Here's what the numbers say

Let's see where half a million would get you when it comes time to retire.

Read more »

An older couple use a calculator to work out what money they have to spend.
Retirement

Changes to deeming rate thresholds may boost your pension from tomorrow

The thresholds used to calculate deemed income from financial assets are going up. Here is the impact.

Read more »

Two people smiling at each other while running.
Retirement

From next week you can earn and own more while still qualifying for the age pension

The latest changes to the pension assets and income tests will come into effect on Tuesday.

Read more »

Joyful woman at a beach on the Gold Coast with her arms spread out.
Retirement

Aged 30 and earning an average wage? You're now set up for retirement. Here's how

A 30-year-old earning $75,000 per year for life will have enough for a comfortable retirement after 1 July.

Read more »