Money stress in Australia is at its highest point in 10 years, according to financial services company AMP’s latest research.
AMP’s Financial Wellness report found that just one in three working Australians now feel financially secure, down from one in two in 2020.
And a third of Australians have also cancelled things like streaming subscriptions and gym memberships.
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The same proportion of people turned to friends or family members or even social media for money tips, compared to just one in 20 seeking help from a financial adviser.
People’s ongoing financial stress is also affecting their financial future, with long-term planning neglected in favour of seeking immediate savings.
“It’s clear more Australians aren’t feeling secure with their finances, not surprising given cost of living pressures and housing unaffordability challenges,” AMP bank group executive Sean O’Malley said.
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“And while the research tells us that most are meeting their mortgage repayments, we know that savings rates are down and many are cutting back expenditure on household basics such as groceries, and other more discretionary items such as streaming services and holidays.”
He urged Australians to seek proper financial advice, such as speaking to banks and brokers about a better rate for their home loan.
People approaching retirement age had the highest levels of stress of any group surveyed, with almost two in five reporting moderate to severe stress.
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And with one in four Australians earning between $100,000 and $150,000 said they didn’t feel financially secure, up by 150 per cent in two years.
“What’s also apparent from the research is that with a focus on paying the bills and keeping their heads above water, more Australians are understandably planning and thinking less about their longer-term financial goals,” AMP group executive super and investments Melinda Howes said.
“The wonderful thing about Australia’s compulsory superannuation system, is with Australia’s high employment levels, most are continuing to automatically build their retirement nest eggs.
“While Australians should take comfort from this, there is more to be gained from our superannuation system.”
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