According to research from Deloitte Access Economics and Compare the Market, nearly 7.5 million Australians now concede they are struggling to pay their bills, are not saving money regularly and do not feel like they have job security. 

It’s around 2 million more people than indicated they were in a similar position last year. 

Commenting on the figure, Compare the Market’s banking expert, Rod Attrill, said: “It’s clear that the personal financial circumstances have worsened for a significant number of Australians — these figures can’t be ignored.”

The research also found just 56 per cent of Australians are saving the recommended 10 per cent of their income, but this is an increase of 128,000 people compared with last year’s results.

A further 5.1 million people — just under half a million more than last year — are spending more than they earn or are saving nothing. 

According to the report, Aussies are citing the growing cost of living and low incomes as the major reasons for their financial difficulties. 

Among those who struggle to pay their bills, 60 per cent blame increases in the cost of living such as food and power prices, 61 per cent say they are not earning enough to cover their bills and 31 per cent blame the little to no wage growth they have received from work as a factor.

Without savings, most people would not survive on their own if they suddenly found themselves without an income, the report highlighted, with 13.4 million conceding they do not have an emergency fund to fall back on.

As a result, 7.3 million Australians would go on government benefits such as Newstart or Centrelink and 4.3 million would rely on financial assistance from family and friends.

“It’s an even greater concern that the number one ‘plan’ for Aussies struggling to keep their head above water when it comes to money matters is to rely on government support and benefits,” Mr Attrill said. 

Alongside the current push for increases to the Newstart allowance, this should signal a big red flag for the federal government as more and more consumers continue to rely heavily on the help of others, the report said.

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

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