A new report into the financial health of Australians has revealed nearly one in five people are now battling to meet everyday commitments.
The ANZ Roy Morgan Financial Wellbeing Indicator, which uses survey data from 65,000 people, shows the economic position of Australians is at its lowest level since the report began a decade ago.
It found more than 17 per cent of Australians are now “struggling” to meet their commitments and needs, up from 14 per cent a year ago, as inflation and interest rates soar.
Financial difficulties are even higher in some states, with the FWI report finding:
– 20.3 per cent of people in Queensland are struggling
– 19.2 per cent in Tasmania
– 18.9 per cent in South Australia
Respondents to the survey who were deemed to be “struggling” had described their current financial situation as “bad, having little or no savings and finding it a constant struggle to meet bills and credit payments. They were less optimistic or future oriented and had poor mental and physical health.”
Tasmania had the sharpest year-on-year fall in financial wellbeing (down 5.4 per cent), followed by the ACT (down 5.1 per cent) and Queensland (down 4.9 per cent).
Despite the fall, the ACT continued to show the highest level of financial wellbeing, remaining above the national average, followed by Victoria, WA and NSW.
But there are positive trends appearing, with an increasing number of Australians turning to expert advice to navigate the current economic uncertainty.
ANZ reported a 15.6 per cent increase in demand for its Saver Plus program since January this year.
“We know the increases in the cost of living over the last year mean Australians are feeling greater financial pressure,” ANZ’s retail group executive Maile Carnegie said.
“Over the same time we’ve seen a marked increase in interest from Australians wishing to learn how to budget, save and set financial goals.
“Building strong financial habits early makes a big difference to a person’s financial wellbeing.”
The FWI report also examined the role a person’s level of education has in their ability to combat financial pressures.
It found knowledge and education helped develop financial confidence, an indicator which is highest in those with a university degree, diploma, TAFE education or had finished Year 12.
Originally published as ANZ Financial Wellbeing Indicator shows near 20% of Aussies struggling