ROOT
New research claims over 300,000 Australian households have 'no financial safety net'
ROOT
New research claims over 300,000 Australian households have 'no financial safety net'
New research has been released.
New research claims over 300,000 Australian households have 'no financial safety net'
Australians without a financial safety net and no government support could only survive 22 days if their income was to suddenly cease, Otivo has suggested.
The automated online financial advice service claims its new data reflects 342,477 households in Australia who have no safety net such as credit cards or other loans.
The research claims with government support, the average Australian could survive 21 weeks if their income was to cease.
Otivo also claimed that some of the 4.1 million in Australia suffering financial pressure are living in affluent suburbs such as Double Bay and Rose Bay in Sydney’s eastern suburbs.
Otivo said that as the cost of living in Australia continues to rise and on the back of the RBA lifting the cash rate from a record low 0.1 per cent to 0.35 per cent on Tuesday - its first rate hike in over a decade – now is the time for all Australians to have access to financial advice.
“The data shows that within postcodes, there is a vast difference in financial fairness. One neighbour, for example, may have a gifted financial safety net and access to a financial adviser, while another neighbour is simply living paycheck to paycheck with no guidance on how to sustain their lifestyle financially, or plan for their future,” Otivo founder and CEO, Paul Feeney, said.
“For many, and perhaps those who need it most, financial advice on complicated subjects like superannuation, insurance, investments and debt, is entirely inaccessible.
“Leaving many Australians ill-equipped to plan, save and navigate financial decisions with a robust understanding of sometimes complicated concepts.”
The findings come after the Financial Planning Association (FPA) released a report late last year that highlighted the importance financial advisers to Australians on the back of the impacts of the COVID-19 pandemic.
A survey conducted by the industry body found that while 35 per cent of the respondents’ income was affected by the lockdowns — and 34 per cent were unsure if they had enough savings to get through it — compared to this time last year, 11 per cent said they are now in a stronger financial position.
About 26 per cent of the respondents also said that they have made changes to their financial situation, including to “be more frugal” about lifestyle choices (44.7 per cent in 2021 compared to 30.8 per cent in 2020), have an increased focus on growing savings (43.9 per cent), and paying off debt (41.3 per cent in 2021 compared to 23.3 per cent in 2020).
RELATED ARTICLES
Earn
Long-term welfare dependency declines despite rise in JobSeeker recipients
New research from e61 Institute has revealed that, contrary to popular belief, the number of people reliant on the benefit system in Australia has declined over the past two decades, despite an ...Read more
Earn
Best property investment strategies in Australia for 2024: An expert's perspective
As the Australian property market continues to evolve, investors are keenly looking for strategies that will yield the best returns in 2024. Read more
Earn
Innovative tax saving techniques for individuals and families
Tax time can be daunting for many Australians, but with some innovative planning and smart strategies, individuals and families can maximise their tax savings. Read more
Earn
Top firm says five factors are fuelling the Great Resignation
According to PwC, the Great Resignation is showing no signs of slowing down. Read more
Earn
Most voters believe JobSeeker rate should be lifted
Nearly half of Aussies said they would likely vote for a candidate who promised to lift the JobSeeker payment above the poverty line. Read more
Earn
Should Australia’s minimum wage be lifted?
With the cost of living being a central focus of this election campaign, both major parties are in disagreement over wage increases. Read more
Earn
Are property investors pushing prices higher?
The average price for investment properties was found to be nearly $170,000 below the mean national property price. Read more
Earn
Almost a quarter of full-time workers are considering leaving their current job
Younger workers are the most likely to be thinking about quitting. Read more
Earn
Long-term welfare dependency declines despite rise in JobSeeker recipients
New research from e61 Institute has revealed that, contrary to popular belief, the number of people reliant on the benefit system in Australia has declined over the past two decades, despite an ...Read more
Earn
Best property investment strategies in Australia for 2024: An expert's perspective
As the Australian property market continues to evolve, investors are keenly looking for strategies that will yield the best returns in 2024. Read more
Earn
Innovative tax saving techniques for individuals and families
Tax time can be daunting for many Australians, but with some innovative planning and smart strategies, individuals and families can maximise their tax savings. Read more
Earn
Top firm says five factors are fuelling the Great Resignation
According to PwC, the Great Resignation is showing no signs of slowing down. Read more
Earn
Most voters believe JobSeeker rate should be lifted
Nearly half of Aussies said they would likely vote for a candidate who promised to lift the JobSeeker payment above the poverty line. Read more
Earn
Should Australia’s minimum wage be lifted?
With the cost of living being a central focus of this election campaign, both major parties are in disagreement over wage increases. Read more
Earn
Are property investors pushing prices higher?
The average price for investment properties was found to be nearly $170,000 below the mean national property price. Read more
Earn
Almost a quarter of full-time workers are considering leaving their current job
Younger workers are the most likely to be thinking about quitting. Read more
