New research by an ASX-listed consumer fintech has shone a spotlight on the mounting uncertainty and lack of confidence among young Australians, with nine in 10 concerned about their financial situation.
Douugh’s Wealth Health research, which sought to understand the financial goals and pressures of young Australians, revealed that homeownership remained the biggest financial goal for one in three young Australians, but more than a quarter weren’t confident they would achieve it. Furthermore, 54% of Australians aged 18 to 32 are concerned they won’t be able to retire comfortably.
The same research identified surging cost of living (67%) as a key barrier to Australians’ long-term goals and financial stability, with a lack of savings, unexpected expenses, and living paycheck to paycheck (37% each) also taking a toll on them financially.
Andy Taylor (pictured above), founder and CEO of Douugh, said it’s clear Australians are grappling between their short-term cost-of-living issues and their long-term financial future.
“The ‘Australian dream’ of homeownership is almost at the point it feels unachievable for a lot of Aussies,” Taylor said. “But it’s important we don’t lose sight of creating sound money habits in the meantime to build the necessary foundations to bring our long-term financial goals back into reach.
“Utilising a range of wealth-building strategies, investing in small but frequent intervals, and seeking professional advice if possible is going to support Aussies through this rough period without having to choose between now or then.”
The report also included the following key stats:
- 91% worry about their financial situation
- 86% agree building long-term wealth is important
- 82% are utilising savings as their wealth-building strategy
- 75% have never sought professional help or financial advice
- 61% rate their knowledge of share investing as limited or very limited
- For those who aren’t investing in shares, not knowing enough about investing (62%), not knowing where to start (45%), and worrying about losing money (43%) are the top-cited barriers
What do you think about the statistics? We’d love to hear from you in the comments below.