Is the Great Australian Dream dead?

Among the 2,000 Australians surveyed, the top three most common aspirations were achieving financial independence (55 per cent), followed by taking regular holidays (50 per cent), and maintaining a good work/life balance (45 per cent).

Notably, home ownership fell short of making it into the top three listed priorities, with only 45 per cent of respondents considering it their primary focus.

In fact, findings showed Australians are now more inclined to pursue their dream life (60 per cent ), over owning their dream home (40 per cent).

Rounding out the top five is building a trusted group of family and friends, with (44 per cent).

These findings shed light on the evolving aspirations of Australians, where financial independence and personal wellbeing take precedence over traditional home ownership goals, according to the report.

“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,” Renato Mota, Insignia Financial’s chief executive officer, said.

“Australians are deeply aware of their financial wellbeing because it ultimately enables them to achieve the things that matter most to them, whether that be travel or spending time with loved ones,” he added.

The report noted the shift in priorities has occurred amid the impacts of COVID-19 and the rising cost of living, which have prompted many Australians to adjust their household spending and adopt budgeting practices, with three in five Australians (62 per cent) having felt compelled to make these adjustments.

Furthermore, when asked about their confidence in maintaining their current lifestyle over the next two years, a significant 56 per cent expressed uncertainty, in contrast to the 44 per cent who “strongly or somewhat agreed this would be possible”.

Insignia Financial’s Financial Freedom Index (FFI), developed alongside the report, also provided insights into Australians’ progress toward achieving their aspirations.

The Financial Freedom Index (FFI) comprises three elements: foundation, behaviour, and attitude. Australians score highest in attitude (59), followed by behaviour (48) and foundation (40). With an overall FFI score of 49 out of 100, the report noted that Australians “demonstrate a real desire to achieve their dreams and secure financial freedom”.

While there is room for improvement in foundational experiences like early financial education, Australians exhibit a strong positive attitude and sentiment, which can drive future behavioural improvements.

Interestingly, Gen Z (52) and Gen Y (55) receive the highest FFI scores, primarily due to their optimistic mindset toward achieving their dreams, surpassing the scores of Gen X (47), Baby Boomers (44), and Builders (45).