Creeping Insecurity

Less than one in two Australians are financially secure at present – a notable drop compared to the same period in 2007.

Only 44.1% of a sample of more than 1,500 individuals stated they feel financially secure – down from 51.6% a year ago.

30.1% of respondents indicated the reason they feel secure is because they have a secure job and a steady income.

One in five respondents cited the fact they have investments or that they have no major debts as why they feel financially secure.

While, not earning enough money, not having enough assets and still paying off debts were key reasons for not feeling secure.

In total, 44.1% of respondents report feeling somewhat or very financially secure, 17.8% feel neither insecure or secure and 38.1% report feeling very or somewhat insecure.

A total of 41.9% of respondents regard it as a very bad or fairly bad time to make a major purchase now, 38.5% are neutral and consider it as neither a good nor bad time, while 17.5% think it is a fairly good or very good time.

While 18.6% of respondents describe their household situation as able to save a lot of money, 37.8% are saving a little, 21.7% are just managing to make ends meet, 11.9% are having to draw on their savings and 10.1% are running into debt.

A total of 18.9% of respondents regard their present household situation as much worse than last year, 33.5% think it is somewhat worse, 21.6% are neutral, 16.9% think it is somewhat better and 9.1% regard it as much better.

10.1% of respondents think the financial position of their household will be much better in the next 12 months, 27.6% think it will be somewhat better, 24.4% consider it will be neither worse or better, 28.6% think it will be somewhat worse and 9.2% much worse.

More than half of all respondents (57.2%) have a financial plan, and this increases with age, with 75.9% of people aged 60+ and 48.7% of those aged less than 29 having a plan.

Only half (54.1%) of those who have a financial plan have written it down, and 95.9% of respondents have discussed their plan with their partners.

A total of 60.2% of respondents occasionally disagree about money. 56.3% of respondents disagree about money at least once a month, and this is much higher among those aged less than 29 years old (72.2%), and lower among those aged 60+ (34.8%).

The main cause of disagreements is overspending in general (29.9%) and one partner wants to spend more than the other (29.7%). One partner wanting to spend more than the other is more of an issue among the 60+ age group, and overspending in general is less of an issue among these respondents.

A total of 35.3% of respondents talk about their disagreement and agree a solution that they are both happy with, 20.2% talk about it and agree a solution where one partners opinion normally wins, and 15% communicate openly about their finances and together plan their future, or agree not to disagree. 13.6% don’t resolve their disagreements, and this is much lower for those aged less than 29 (4.8%).