The 2030 Generation Invests in Stocks to Save Money for Buying a House

The 2030 Generation Actively Investing in Stocks... Mirae Asset Retirement Research Institute Report Released
Retirement Funds Prioritized Over Wedding Expenses
Most Seek Moderate to High Returns of 5-10%

Provided by Mirae Asset Retirement Research Institute

[Asia Economy Reporter Minwoo Lee] Mirae Asset Retirement Research Institute announced that an analysis of the investment characteristics of the 'Millennial Generation,' aged in their 20s and 30s, revealed that the most prominent goal was raising funds for home purchases.

On the 29th, Mirae Asset Retirement Research Institute published Retirement Report No. 46 titled "Millennial Generation, the Emergence of a New Investment Humanity," containing these findings. According to the report, the institute conducted a survey in May targeting 700 men and women nationwide aged 25 to 39, which yielded these results.

The highest proportion of respondents selected "raising funds for home purchase (31%)" as their top investment goal. This was followed by "accumulating retirement assets (23%)." Accumulating retirement assets was perceived as a more important goal than "preparing marriage funds (15%)." Among the survey participants, only 34% owned their homes, and more than 7 out of 10 responded that owning a home was essential.

There was also a strong willingness to invest actively. The combined percentage of those who responded that they would definitely (11%) or generally (64%) intend to invest financially in the future was 75%, which is 8 percentage points higher than the 67% of those in their 50s. The primary reason for financial investment was "overcoming low interest rates," cited by 78%, overwhelmingly surpassing the second reason, "alternative to real estate investment," at 12%.

Meanwhile, their investment tendencies favored medium to high returns (5?10%) and direct investments. More than half, 58%, answered that they pursue medium to high returns of 5?10% annually when investing. The sector with the highest future investment intention was stocks. The proportion selecting direct stock investment as their first choice was 30%, and up to the third choice, it reached 60%. Investment intentions toward equity funds and Exchange-Traded Funds (ETFs) were also favorable. The proportion selecting equity funds and ETFs up to the third choice was 55%, which is a 5 percentage point increase compared to current investments.

The most popular investment areas of interest were related to the Fourth Industrial Revolution, but attention was also paid to environmental and social responsibility issues, dividend stocks, gold, crude oil, and the dollar. Compared to previous generations, there was a clear interest and positive outlook on overseas investments. The channels for obtaining investment information were mostly non-face-to-face means such as mobile applications, specialized internet site searches, and YouTube.

Seventy-four percent of the Millennial Generation had financial assets under 50 million KRW. Safe and savings-type assets and investment assets were generally composed in a 70:30 ratio. Twenty-nine percent held financial assets under 10 million KRW, and 45% had assets between 10 million and 50 million KRW. Among financial assets, deposits, savings insurance, and pensions accounted for 70%, while investment assets (direct and indirect investment products) and others accounted for 30%. Although this ratio was not significantly different from the 68:32 composition of those in their 50s, the 50s group had a noticeably higher pension proportion and a lower deposit proportion compared to the Millennial Generation.

The report can be downloaded for free from the Mirae Asset Retirement Research Institute website. Park Young-ho, head of the Pension Research Center at Mirae Asset Retirement Research Institute, said, "Through the survey, we confirmed that the younger generation values retirement asset accumulation and other old-age preparations and approaches these through investment. It is necessary to support and educate the Millennial Generation policy-wise and institutionally so that they can execute global asset management from a long-term perspective amid low interest rates and low growth trends."

This content was produced with the assistance of AI translation services.