Research from AMP has revealed that two in three Australians’ finances have been impacted by COVID-19, bringing forth a range of short and long-term ramifications.
Of those surveyed, half (49%) anticipate it will take them at least three months to get their financial goals back on track after the events of recent months.
The ‘key theme’ which arose during the research was that postponing financial goals has become the new norm; of the respondents, 29% have delayed buying a car, 22% have pushed back buying a home and 19% have been forced to hold off on buying an investment property.
“It’s clear that many Australians have been impacted by COVID-19, including having to hold on making significant financial decisions from retirement to travel to buying property,” said AMP Bank director of retail solutions and direct distribution Michael Christofides.
“We’re seeing Australians being more prudent with their saving and spending decisions, partially due to lockdown restrictions but also relating to a desire to be prepared for any future rainy days.”
Over a third (38%) of those surveyed said they’ve cut back on spending across the board, with 21% intentionally putting more money towards saving and investing.
These statistics further corroborate a trend which has been taking shape over recent months; the silver lining of the COVID-19 pandemic seems to be the opportunity the financial upset has created for Australians to plan for their futures and get their finances in order.
“Now more than ever, Australians are conscious of the importance of saving and preparing for the unpredictable,” Christofides noted.
“There’s no doubt that COVID-19 has brought with it a number of challenges for Aussies but the challenging climate has given some the opportunity to take a step back and re-evaluate their personal finance journeys.
“Compared to earlier in 2020, there’s a sense that Aussies are taking this time to reset their financial goals and adopt more proactive financial behaviours both in relation to saving and discretionary spending.”
On a hopeful note, 45% of the Australians surveyed remain optimistic about their financial futures post COVID-19.