Cost of living, Energy Prices and Good Government keeping Aussies up at night
The RaboDirect Financial Health Barometer, completed annually by RaboDirect for the past 5 years this year surveyed over 2,300 Aussies about what’s keeping them up at night, how they feel about the future and their trust in Government and the financial services sector. There’s some interesting results from the survey worth sharing following the federal election.
The new Government will have their work cut out for them not only in the senate, but with a quarter of the population (26%) indicating that they have little or no trust in the Government to effectively manage the economy. Moreover, 49% of Australians expect the economy to worsen in the next 12 months, with 61% of these pessimistic respondents considering Government actions to be a key reason – second only in importance to concerns around cost of living increases (79%). However, for the 1-in-5 who have an optimistic outlook, positive government actions (38%) and good employment prospects (41%) are noted as key drivers for the positive view.
While the majority of Australians trust the financial services sector to act with integrity and be well governed, more than 1-in-4 rate the financial services sector low when it comes to acting with a high level of integrity – and for Baby Boomers, this proportion rises to more than 1-in-3.
Of concern is that consumers’ confidence about personal finances has fallen consistently for the past 3 years (from 52% confident in 2013 to 44% this year), with the decline more pronounced among Baby Boomers (59% in 2013 to 46% this year).
When looking to the future, consumers are most concerned about factors directly impacting their households, such as cost of living increases (61%), energy prices (49%), and the broader issues such as government (46%) and climate change (43%).
Are we becoming a nation of worriers? Respondents who don't feel under financial stress and are more optimistic typically save more regularly, have a long term plan and are more likely to be happy, so what can be done to turn the tide of negative attitudes among many Aussies?
Glenn Wealands, Head of Markets Research at Rabobank Australia & New Zealand, can discuss the statistics on sentiment towards government and the financial services sector, and the impacts on confidence towards personal finance.
Find out more about: Financial Health Barometer
RaboDirect is the straight talking savings bank, part of Rabobank Australia. As savings specialists RaboDirect is passionate about helping customers achieve their savings goals, through a range of high interest savings accounts and competitive term deposits.
RaboDirect is a division of Rabobank Australia Limited, part of the Rabobank Group, one of the world's leading specialists in food and agribusiness banking. Rabobank has more than 115 years' experience providing customised banking and finance solutions to businesses involved in all aspects of food and agribusiness.