Financial Worries Surge as Australians Face Economic Challenges

1

Contrary to the escalating stress, merely 13% of those grappling with moderate to severe financial stress had consulted financial advisors. Alternatively, many lean on familial and friendly networks (31%), with digital outlets like Google (27%) and social media (15%) as secondary sources for guidance on financial matters.

Alarmingly, 35% of those experiencing significant financial distress, alongside 30% of their more secure or mildly stressed counterparts, reported no consultation of external resources for financial advice. This situation underlines a substantial opportunity for financial advisors to reach out and fill this advisory gap.

The report sheds light on income's influence on financial stress levels, with those earning between $15,000 and $49,999 bearing the highest stress percentages (32%). Nonetheless, a notable surge from 9% in 2020 to 24% in 2024 is evident among individuals with earnings in the $100,000 to $149,999 bracket.

Overall, the prevalence of moderate to severe financial distress has risen across income categories in the past four years, excluding a decrease observed in earners above the $150,000 threshold.

Exploring the ramifications of these financial strains, the report highlights that over half of Australians (54%) admit to infrequently reserving funds for retirement, and 41% of those under significant financial stress report a reshaping of their life ambitions due to growing economic pressures.

1. Short-term focus is eclipsing long-term financial strategies, with a third of Australians rarely planning for their financial futures.
2. Anticipation of a substantial elevation in living costs in the upcoming two years is held by 52% of the populace, amplifying financial concerns.

As noted in the financial revelatory study originally issued by AMP, Sean O'Malley, a leading executive at AMP Bank, urges Australians to harness the support of financial professionals to navigate and alleviate their financial turmoil.

Published:Thursday, 10th Oct 2024
Source: Paige Estritori

Share this news item:

Finance News

Westpac Ends Cardless ATM Withdrawals: What This Means for Customers 11 Oct 2024: Paige Estritori Westpac Banking Corporation is making significant changes to its ATM services by eliminating the option for cardless cash withdrawals. This shift will require customers to carry a physical card to withdraw cash, starting at 8:00 PM AEST this Friday 11th October. - read more

Small Businesses in Australia: Navigating Turbulent Times 10 Oct 2024: Paige Estritori Amid the prevailing economic challenges, Australian small businesses are feeling the crunch as a wave of insolvencies underscores the depth of the issue. The construction and hospitality sectors are particularly vulnerable, with businesses seeking new strategies to stay afloat. - read more

Financial Worries Surge as Australians Face Economic Challenges 10 Oct 2024: Paige Estritori In a decade-long analysis, AMP’s recent Financial Wellness report uncovers a growing cloud of financial anxiety looming over Australian workers, with two-thirds expressing some level of financial distress. Particularly notable is the strain felt by those aged 55 to 59, where almost 40% report moderate to severe stress, highlighting growing concerns as retirement approaches. - read more

Australia Grapples with Prolonged Economic Slowdown 08 Oct 2024: Paige Estritori Australian citizens are currently navigating through an unprecedented economic phase, marked by the most prolonged recession per capita in the nation's history. This downturn has extended through six consecutive quarters of declining economic output, with a total of seven declines across the last eight quarters. - read more

Banks Under Fire for High Fees on Low-Income Accounts 07 Oct 2024: Paige Estritori A directive from Australian regulators is set to benefit nearly two million Australians, primarily from lower income groups, as major financial institutions were mandated to refund $28 million in excessive fees collected over the years. - read more

Calls Intensify for RBA to Reduce Rates and Rescue Retail 07 Oct 2024: Paige Estritori As the critical shopping season approaches, retail associations are urging the Reserve Bank to lower the cash rate in its upcoming November meeting. This call to action comes at a pivotal moment, with end-of-year festivities such as Black Friday and Christmas expected to significantly influence consumer spending. - read more

RBA Insights: The Dynamics Behind Rate Decisions 06 Oct 2024: Paige Estritori The Reserve Bank of Australia (RBA) is set to release its September board meeting minutes, which promise to explain the rationale behind the decision to maintain interest rates at their current level. Market watchers are keenly awaiting any indications of future rate changes. - read more