Money Research with Money Matchmaker®
Have Aussies lost their motivation to build wealth?
A Money.com.au Study November 2022
About the study
Money.com.au commissioned a survey of an independent panel of 1,010 Australians to gauge whether they are less motivated to build wealth since home loan interest rates began to increase in response to rising inflation. Respondents were asked if they feel less motivated to save, invest or earn more at work – and whether they think inflation will be controlled in Australia.
The pool of survey respondents matches the age and geographical spread of the Australian population.
What proportion of the population have lost the motivation to build wealth?
Money.com.au sought to uncover whether Australians have less motivation to earn more at work, save or invest. The survey results found that 44 per cent of respondents have lost motivation in at least one of those areas.
Specifically:
- Nearly a quarter (23%) are less motivated to invest.
- 21% are less motivated to save.
- 11% have lost motivation to earn more at work.
In this current climate of inflation, raising interest rates, and supply chain disruptions, do you fell less motivated to build wealth?
Money.com.au analysed the results across age groups. Younger respondents were more likely to have lost their motivation to build wealth, amid the current climate.
More than half (53%) of under-30s admitted they had less motivation
This is compared with:
- 46% of 31-50-year-olds
- 37% of over-50s
Younger respondents were less motivated than any other age group across each financial area.
29% of under-30s revealed they were less motivated to save.
This compares with:
- 18% of over-30s.
More than a quarter (28 per cent) of under-30s were also less motivated to invest.
This compares with:
- 25% of 31-50-year-olds
- 19% of over-50s.
Do you feel less motivated to build wealth in the current climate?
Money.com.au found that similar proportions of respondents across the States are less motivated to build their wealth. This includes:
- 48% of South Australians
- 47% of NSW respondents
- 46% of Victorians
- 41% of Queenslanders
Specifically, nearly a third (30 per cent) of South Australians indicated they are less motivated to invest – along with:
- 25% of Victorians
- 24% of NSW respondents
- 22% of Queenslanders
In this current climate of inflation, rising interest rates, and supply chain disruptions, do you feel less motivated to build wealth?
| Response | NSW (%) | VIC (%) | QLD (%) | SA (%) | WA (%) |
|---|---|---|---|---|---|
Yes, I am less motivated to earn more at work | 11 | 14 | 9 | 12 | 8 |
Yes, I am less motivated to save | 24 | 21 | 19 | 23 | 13 |
Yes, I am less motivated to invest | 24 | 25 | 22 | 30 | 19 |
No | 53 | 54 | 59 | 52 | 66 |
Are Australians spending less this year?
Money.com.au asked survey respondents whether they have reduced or increased their spending this year.
- A third (35%) have decreased their spending
- 44% have maintained their spending
- Just 21 per cent have increased their spending
Have you reduced or increased your spending this year
Older respondents are more likely to have decreased their spending.
- 41% of over-50s are spending less this year.
- This compares with:
- 35% of 31-50-year-olds
- 25% of under-30s
In contrast, younger Australians are spending more. A third (34 per cent) of under-30s have increased their spending, compared with:
- 21% of 31-50-year-olds
- 13% of over-50s
Have you reduced or increased your spending this year?
Similar proportions of respondents across the States have reduced their spending this year. This includes:
- 44% of West Australians
- 35% of Victorians and Queenslanders
- 33% of NSW respondents
- 32% of South Australians
Have you reduced or increased your spending this year?
| Response | NSW (%) | VIC (%) | QLD (%) | SA (%) | WA (%) |
|---|---|---|---|---|---|
I have increased my spending | 24 | 22 | 16 | 28 | 15 |
I have not changed my spending | 43 | 43 | 49 | 40 | 41 |
I have decreased my spending | 33 | 35 | 35 | 32 | 44 |
Do Australians think inflation will be controlled?
Respondents were asked whether they think inflation will be controlled in Australia, returning to an average 3 per cent growth rate. More than half (59 per cent) don’t think inflation will be controlled.
Do you think inflation will be controlled in Australia, going back to a 3% growth rate?
Similar proportions of respondents across all age groups admit they don’t think inflation will be controlled in Australia.
This includes:
- 61% of under-30s
- 58% of over-30s
Do you think inflation will be controlled in Australia, going back to a 3% growth rate?
| Age | Yes | No |
|---|---|---|
18-30 | 39% | 61% |
31-50 | 43% | 57% |
50+ | 41% | 59% |
The survey also revealed that similar proportions of respondents across the States don’t think inflation will be controlled and return to an average 3 per cent growth rate.
Specifically:
- 66% of West Australians
- 63% of Queenslanders
- 60% of Victorians
- 54% of NSW respondents
- 53% of South Australians
Do you think inflation will be controlled in Australia, going back to a 3% growth rate?
