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.