Household comfort report shows more people running on empty
Financial Planning | 10/08/2018 |
5 min read
The latest ME Household Financial Comfort Report confirms what many of us already know - wages are stagnant while household cost are increasing.
Based on a survey of 1500 households, the report noted 4 key finds;
1. Low income growth - The majority of Australian households are not seeing any significant pay increases
2. Rising household costs - Stagnant wages and increased prices are causing increased financial stress
3. Increased reliance on savings – People are saving less, and are more likely to dip into their savings to cover expenses
4. Widespread financial stress – There’s less money to go around, and people are being squeezed to maintain their mortgage payments.
These findings can be summarised by a quote from an unnamed Australian couple featured in the report - “Our income has stayed the same, but our ability to cover essentials has worsened.”
Some good news
Despite the pessimistic outlook, there is some good news. The self-employed sector (including tradies and professional freelancers) saw the largest increase in consumer comfort. These people make up around 15% of the Australian workforce.
South Australia also saw more consumer confidence than any other state, with a 16% increase in household comfort off the back of improved employment numbers.
You can read the full report online. Click here.