Investors name 5 biggest barriers to financial goals

Australian investors say housing costs, goods inflation and slow wage growth are the main barriers to achieving their financial goals, according to a survey. Their biggest goals in order of importance are retiring and living off their investments, supplementing their work income with investment income, funding holidays and travel, cutting back on their hours of work and buying a home.

Online trading platform Stake surveyed more than 2,000 Australian investors for a comprehensive report about their ambitions this year. The report concluded that the biggest barriers to financial goals reflected a broader problem, being that salary and wages are not keeping up with rises in the cost of living, including property prices and weekly rents.

Australians say the biggest barriers to achieving their financial goals are as follows.

Housing costs

Saving a deposit is one of the biggest hurdles for first home buyers today, with most workers unable to save fast enough to keep up with rising home values. The median Australian home price rose by $59,000 over FY24 while rents increased by 7.3 percent over the same period. CoreLogic data shows rents have risen by almost 40 percent over the past five years. Stake CEO, Jon Howie said: “In Australia, over the past 30 years, house prices have risen by an average of 8 percent per annum, compared to around 3 percent for wages …”.

Goods inflation

Since the pandemic, rising inflation has significantly increased the cost of goods and services. At its peak, inflation hit 7.8 percent per annum in the December quarter of 2022, according to the Australian Bureau of Statistics (ABS). By that time, the cost of petrol had risen 13.2 percent over the year and fruit and vegetables were up 12.6 percent. Higher interest rates are now working to bring the rate of inflation down. But this only means the cost of goods and services is rising at a slower pace. For example, petrol prices rose by another 7.7 percent in FY24. Services inflation is higher, with insurance up 14 percent over FY24 and electricity up 6 percent (although without government rebates it would have been 14.6 percent higher).

Slow wage growth

This week the ABS published an updated Wage Price Index report, which found wages rose by 0.8 percent over the June quarter while inflation rose by 1 percent. Over FY24, wages rose by 4.1 percent and inflation rose by 3.8 percent. Once again, higher interest rates are bringing the rate of inflation down now. However, when inflation was at its peak of 7.8 percent in December 2022, wage growth was well below this at 3.3 percent.

Costs of supporting a family

ABS data documenting how inflation is affecting various household types found employee households, which include working families, are worst affected. The ABS Living Cost Index for employee households rose by 6.2 percent in FY24 compared to the overall inflation rate of 3.8 percent. A recent report from KPMG found rising living costs were impacting family formation. KPMG urban economist Terry Rawnsley said: “With the current rise in living expenses applying pressure on household finances, many Australians have decided to delay starting or expanding their families.”

Unfair tax system

While the Stake report did not specify which taxes survey respondents felt were unfair, there is ongoing debate in the community about tax breaks given to property investors. Negative gearing is very common among Australian landlords, with rental income not typically enough to cover holding costs, including interest on an investment loan. Landlords are able to deduct this loss against other taxable income, such as their salaries. Investors also pay tax on only 50 percent of their capital gains when they sell an asset if they have held the asset for more than 12 months.

The boom in casual footware ushered in by the pandemic has ended, a potential problem for companies such as Adidas that benefited from the shift to less formal clothing, Bank of America says.

The casual footwear business has been on the ropes since mid-2023 as people began returning to office.

Analyst Thierry Cota wrote that while most downcycles have lasted one to two years over the past two decades or so, the current one is different.

It “shows no sign of abating” and there is “no turning point in sight,” he said.

Adidas and Nike alone account for almost 60% of revenue in the casual footwear industry, Cota estimated, so the sector’s slower growth could be especially painful for them as opposed to brands that have a stronger performance-shoe segment. Adidas may just have it worse than Nike.

Cota downgraded Adidas stock to Underperform from Buy on Tuesday and slashed his target for the stock price to €160 (about $187) from €213. He doesn’t have a rating for Nike stock.

Shares of Adidas listed on the German stock exchange fell 4.5% Tuesday to €162.25. Nike stock was down 1.2%.

Adidas didn’t immediately respond to a request for comment.

Cota sees trouble for Adidas both in the short and long term.

Adidas’ lifestyle segment, which includes the Gazelles and Sambas brands, has been one of the company’s fastest-growing business, but there are signs growth is waning.

Lifestyle sales increased at a 10% annual pace in Adidas’ third quarter, down from 13% in the second quarter.

The analyst now predicts Adidas’ organic sales will grow by a 5% annual rate starting in 2027, down from his prior forecast of 7.5%.

The slower revenue growth will likewise weigh on profitability, Cota said, predicting that margins on earnings before interest and taxes will decline back toward the company’s long-term average after several quarters of outperforming. That could result in a cut to earnings per share.

Adidas stock had a rough 2025. Shares shed 33% in the past 12 months, weighed down by investor concerns over how tariffs, slowing demand, and increased competition would affect revenue growth.

Nike stock fell 9% throughout the period, reflecting both the company’s struggles with demand and optimism over a turnaround plan CEO Elliott Hill rolled out in late 2024.

Investors’ confidence has faded following Nike’s December earnings report, which suggested that a sustained recovery is still several quarters away. Just how many remains anyone’s guess.

But if Adidas’ challenges continue, as Cota believes they will, it could open up some space for Nike to claw back any market share it lost to its rival.

Investors should keep in mind, however, that the field has grown increasingly crowded in the past five years. Upstarts such as On Holding and Hoka also present a formidable challenge to the sector’s legacy brands.

Shares of On and Deckers Outdoor , Hoka’s parent company, fell 11% and 48%, respectively, in 2025, but analysts are upbeat about both companies’ fundamentals as the new year begins.

The battle of the sneakers is just getting started.