Australians' top five financial concerns: ING

Australians' top five financial concerns: ING
Australians' top five financial concerns: ING

Economic wellbeing declined during the second quarter of 2014, with preservation of lifestyle becoming the chief concern of 47% of those surveyed, according to ING DIRECT’s Household Financial Wellbeing Index.

The five top concerns

  1. Maintaining current lifestyle (47%, but increased to 56% for baby boomers)
  2. Managing new costs from Federal Budget (45%)
  3. Meeting large on-off costs, e.g. home renovations or car maintenance (31%)
  4. Job stability (25%, but up to 40% of Gen Y households)
  5. Increasing debt (18%, but totalling 25% of Gen Y households)

Source: ING DIRECT

This has led to the financial ambitions of Australians surveyed being larger about reducing spending and holding onto funds. A total of 44% wanted to save more, with 63% of Gen Y putting this as their priority.

Reducing the cost of living (41% overall, 50% of baby boomers), cutting back on discretionary spending (32%), getting a better paying job (18% overall, 30% of Gen Y) and earning more by working longer hours (10% overall, 20% of Gen Y) were the top finance ambitions.

The trend towards maintaining, rather than improving, lifestyle came as a worry to ING DIRECT executive director of customer John Arnott, who noted that costs are rising faster than incomes.

“On the plus side, households are taking responsible steps to preserve and even improve their financial wellbeing, with many looking at ways to actively cut costs rather than relying on increased debt, which can lead to greater financial pain further down the track,” said Arnott.

The Household Financial Wellbeing Index measures sentiment across debt, income, investments, savings and ability to meet household bills.

Jennifer Duke

Jennifer Duke

Jennifer Duke was a property writer at Property Observer

Tags: 
Economy

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