Aussies ditch 'Great Australian Dream,' pursue 'Great Australian Lifestyle'

The "Great Australian Dream" has been superseded by the pursuit of the "Great Australian Lifestyle" as a new measure of success underscored by financial security, a new survey finds.

MLC's new Real Retirement Report, compiled alongside McCrindle Research, found owning a home remains a common aspiration among younger Australians, but the definition of financial and life success is broadening beyond a single milestone into a more holistic view of financial freedom across a lifetime.

The report found Australians' top life aspirations are now financial independence (54%) and having enough money to retire comfortably (54%), prompted by a "pragmatic response to a changing world."
Ongoing economic uncertainty and cost-of-living pressures are reinforcing the need to balance immediate financial priorities with an intentional plan for the longer term. The long-held aspiration of owning a home remains important but is no longer viewed as the sole marker of achievement.

Many Australians are now embracing what the research describes as the "Great Australian Lifestyle", centred on financial freedom, flexibility and the ability to enjoy life experiences throughout retirement

"Together, these enable Australians to live well today while building towards the Great Australian Lifestyle over time and doing so with the confidence to focus on what they value, from family and relationships to travel, careers and life experiences," the report reads.

The survey of 2500 Australians also found Gen Z is the generation most optimistic about retirement outcomes.

More than one-third (37%) believe they will be able to meet their financial needs in retirement, while they expect to retire earlier than any other age cohort, at 63.

Across the population, cost-of-living pressures are by far the most cited barrier to achieving financial goals (64%), followed by current income (37%) and debt (20%).

Gen Z reported the highest levels of frustration about their financial situation (37%), just ahead of Gen Y (36%), and followed by Gen X (32%) and Baby Boomers (19%).

MLC chief customer officer Renee Howie said having enough money to retire comfortably is now one of Australians' most important life goals, yet most people don't feel on track to achieve it.

"With cost-of-living pressures, interest rate rises and even uncertainty around what recent Federal Budget changes may mean for them, it's understandable many Australians feel less in control of when and how they retire," she said.

"What's encouraging is that younger Australians appear to be responding with action and engaging earlier with their finances. They're talking openly and honestly about money, setting goals, superannuation and thinking about retirement well before previous generations did."