Aussie financial wellbeing deteriorates

by Adam Smith18 Aug 2014
Half of Australian households fear they won't be able to maintain their standard of living as financial wellbeing has deteriorated over the second quarter of the year.

The latest ING Direct Household Financial Wellbeing Index found that financial wellbeing among households declined for the second quarter of the year. Preserving their current lifestyle has become the top concern for 47% of Australian households, and 41% say they will aim to reduce living costs in the year ahead.

The Federal Budget continues to be a concern for households, with 45% of the survey's respondents saying they were worried about managing new costs as a result of the budget. Job stability is a concern for 25% of households, with that number rising to 40% for Gen Y households.

"It’s worrying that maintaining rather than improving lifestyle has become the key concern as Australian households deal with costs rising faster than incomes," ING Direct executive director of customer John Arnott said.
 

COMMENTS

  • by MCC 18/08/2014 10:13:06 AM

    I'm certainly not surprised by these findings. 'Under employment' has been a growing & concerning issue which has been flying under the radar because of the focus on unemployment data as primary economic measurement for media publication. I cannot see stronger employment growth for some years ahead because 'automation' is stripping out jobs faster than they can be created by new or old industries. This is a global issue. On the back of that concern around employment, it is right for households to feel concerned for their well being. The 'budget' didn't help because households & I suspect business as well, couldn't see how a reduction in Gov't spending & lesser focus on raising revenues / taxable income was going to drive an increase in economic growth - As at Dec 2013, 55% of Australia's GDP was via Household expenditure & a further 20% was via Government spending. Yes a longer term strategy for budget repair is definitely necessary with a shrinking income tax base & aging population placing pressure on expenditure side, but it's just that, a LONGER TERM STRATEGY. So much for Liberal / Conservative Governments as being ALWAYS better economic managers!!!!