Traders Union research: 31% of market participants invest for financial independence

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Market participants invest for financial independence

Why financial independence came first

Traders Union notes that investing has become more accessible thanks to mobile apps, low-cost brokerage services, ETFs and growing financial literacy. At the same time, investors’ goals have also changed. Many no longer see the market only as a way to save money for old age.

For investors, financial independence means being less dependent on salary, having a capital cushion and gaining more freedom in lifestyle choices. This approach is especially visible among younger market participants. In the 18–29 age group, 43% of respondents named financial independence as their main goal, while among investors aged 30–44, the figure was 35%.

Older investors have different priorities. In the 45–54 age group, retirement savings were the most common goal, chosen by 34% of participants. Among respondents aged 55–65, this figure reached 49%. This shows that with age, the focus shifts from financial freedom to capital preservation and retirement preparation.

How experience affects investor goals

The study also showed that investment goals change with experience. Among participants with less than two years of experience, the most common reason for investing was additional income, chosen by 28% of respondents. For beginners, the market often looks like a way to increase income faster or create a second source of earnings.

Among investors with two to five years of experience, financial independence comes first. It was named by 33% of participants in this group. Among more experienced investors who have been in the market for more than five years, retirement savings become the top priority, chosen by 36% of respondents.

According to Traders Union, this is linked to practical experience. Investors who have already faced drawdowns, high volatility or losses are more likely to think not only about potential returns, but also about the long-term sustainability of their strategy.

Inflation also pushes people toward the market

Inflation became a separate factor. According to the study, 47% of participants said rising prices were an important reason for starting to invest. Another 32% said inflation partly influenced their decision. Only 21% of respondents said this factor did not play a significant role for them.

This means that almost four out of five investors, to some extent, connect the start of investing with the desire to protect the purchasing power of their money. When prices rise, keeping funds in cash or in a regular account becomes less attractive, so some people look for instruments that could potentially generate returns above inflation.

At the same time, inflation protection is rarely the only goal. For many, it complements other motives: financial independence, retirement savings, additional income or preparation for major purchases.

What the study showed

The main conclusion of Traders Union is that financial independence has become a more important goal for retail investors than traditional retirement preparation. This is especially visible among younger market participants, who want not just to accumulate capital for old age, but to gain more control over their lives earlier.

At the same time, investors rarely pursue only one goal. Financial independence, retirement, additional income, inflation protection and buying a home often exist at the same time. Therefore, the study does not show a rejection of classic long-term planning, but a change in approach: investors are increasingly using the market as a tool for a more flexible financial future.

As a reminder, Traders Union analysts previously found that 41% of investors hold more than half of their portfolio in a single asset.

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