Gold Coast mother Leah Selfe is one of many Australians currently battling rising costs. (Source: Provided/Getty)
Australia’s financial stress levels have reached their highest level in a decade. Only one in three working Australians feel financially secure as cost of living pressures increase, according to new analysis by AMP, down from half during the pandemic.
Stress among workers with incomes between $100,000 and $150,000 has increased sharply, with nearly a quarter of Australians in this group experiencing ‘severe’ or ‘moderate’ financial conditions. Reports feeling stressed. This is a 150% increase in two years and nearly tripled since 2020.
AMP Banking Group executive Sean O’Malley said Australians were not saving as much as they used to and were cutting back on spending on essentials like groceries, along with discretionary spending such as streaming services and holidays, to get by. He said there was.
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“It’s clear that more Australians are not feeling secure with their finances, which is not surprising given the cost of living and housing costs,” Mr O’Malley said.
Three in five Australians have reduced their spending on groceries this year, two in five have taken no holidays and one in three have spent less time on hobbies and interests.
A third also canceled his streaming subscription and gym membership to deal with financial pressure.
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Australian families in distress
Gold Coast mother Leah Selfe said rent, groceries and her 15-year-old son Charlie’s school fees were currently straining the family budget, leaving little room for savings.
“Those are the biggest stresses that I’ve found to be the biggest stresses,” the executive told Yahoo Finance.
Selphie said rent, groceries and tuition are among her biggest financial stressors. (Source: Provided)
“We’ve lived on the Gold Coast for almost nine years this year. In those nine years, the rent we were paying then and the rent we’re paying now has easily doubled.
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“When it comes to groceries, it can be very depressing to go to the store and realize that you’re coming home with fewer and fewer items.”
Selphie has cut spending by being more mindful of her family’s grocery store, meal prepping and having “uncomfortable and difficult conversations” with her son about what activities he can and cannot do. He said he did.
Saving for retirement has become even more difficult given the current cost of living pressures, and the self-employed Australian admitted she had not paid herself any retirement benefits in two years, she said. spoke.
Australians urged to seek help
AMP research found that people’s focus on current financial pressures is impacting their ability to plan for long-term goals.
The researchers found that financial stress was highest among those nearing retirement, with nearly 40% reporting moderate to severe stress.
“What is clear from our research is that more Australians are naturally thinking and planning about their long-term financial goals, with a focus on paying their bills and keeping their heads above water.” said Melinda Howes, AMP Group Executive, Supermarkets and Investments.
She encouraged Australians to take a closer look at their superannuation and talk to their fund to feel more in control of their financial situation.
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