ROOT
Aussies make cuts to spending as money worries increase
While most Australians plan to simply reduce their spending to manage the financial impact of COVID-19, over a quarter plan to access their superannuation in the next year, according to recent research.
Aussies make cuts to spending as money worries increase
While most Australians plan to simply reduce their spending to manage the financial impact of COVID-19, over a quarter plan to access their superannuation in the next year, according to recent research.
Recent research by Fidelity exploring the impact of COVID-19 on people’s finances indicates that worries about money have significantly increased since the COVID-19 crisis began.
The research, based on a survey conducted by CoreData in May, showed that 45.7 per cent of respondents felt that their worries about money had increased since the beginning of the pandemic.
Fidelity International managing director, Australia, Alva Devoy said the research found that Australians appeared to be making sensible choices when it comes to their finances through this period, however.
“Reducing discretionary spending such as eating out was the top choice for mitigating the impact of COVID-19, with 63.4 per cent saying they would do this over the next month to six months,” said Ms Devoy.
Just over half said they would reduce spending on essential items like food and clothing during the next one to six months.
The survey also compared what those in a good financial situation were planning to do versus those in a bad financial situation.
Ms Devoy said among those in a bad financial situation, there was a much higher percentage of respondents looking to reduce their spending on essential items.
These respondents also intended to cancel memberships or subscriptions and seek additional work or jobs.
“Worryingly, 26.1 per cent of people say they plan to take the opportunity to access their superannuation early in the next 12 months,” Ms Devoy said.
The survey indicated that, overall, 9 per cent of respondents planned to access their superannuation within the next month.
Pleasingly, Ms Devoy said there were few respondents planning to sell down assets, including shares and property.
“So, outside of the access to superannuation, the forced selling of assets is not problematic, but this is something we should keep an eye on as we monitor the impact of COVID on our economy,” she said.
RELATED ARTICLES
Save
Financial stress among working Australians reaches decade high, AMP report finds
Financial stress levels in Australia have hit their highest point in 10 years, according to AMP's latest Financial Wellness report. Read more
Save
Teaching kids about money: Strategies for saving and financial literacy
Teaching children about money is a crucial aspect of preparing them for financial independence and responsible adulthood. In Australia, equipping kids with the skills to save and understand money ...Read more
Save
Are young Aussies being left behind in the pandemic financial recovery?
A new survey suggests that the financial wellbeing of Aussies under 25 has not recovered, unlike every other age group. Read more
Save
Over 4m households are feeling the pinch of financial pressure
The number of households experiencing financial pressure has increased by 10 per cent since the start of the pandemic. Read more
Save
Debt, bills and everyday expenses are roadblocks for Aussies looking to save
One in four adults are not able to set aside money to save. Read more
Save
Border reopening drives Aussies to save thousands for travel
More than half of Australians are currently saving to take a trip in 2022. Read more
Save
Pandemic-driven savings have helped improve financial wellbeing
The median savings balance of Australians has soared 42 per cent compared to before the pandemic. Read more
Save
How Aussies plan to improve their savings habits in 2022
Travel is the top savings goal of Aussies for the year ahead. Read more
Save
Financial stress among working Australians reaches decade high, AMP report finds
Financial stress levels in Australia have hit their highest point in 10 years, according to AMP's latest Financial Wellness report. Read more
Save
Teaching kids about money: Strategies for saving and financial literacy
Teaching children about money is a crucial aspect of preparing them for financial independence and responsible adulthood. In Australia, equipping kids with the skills to save and understand money ...Read more
Save
Are young Aussies being left behind in the pandemic financial recovery?
A new survey suggests that the financial wellbeing of Aussies under 25 has not recovered, unlike every other age group. Read more
Save
Over 4m households are feeling the pinch of financial pressure
The number of households experiencing financial pressure has increased by 10 per cent since the start of the pandemic. Read more
Save
Debt, bills and everyday expenses are roadblocks for Aussies looking to save
One in four adults are not able to set aside money to save. Read more
Save
Border reopening drives Aussies to save thousands for travel
More than half of Australians are currently saving to take a trip in 2022. Read more
Save
Pandemic-driven savings have helped improve financial wellbeing
The median savings balance of Australians has soared 42 per cent compared to before the pandemic. Read more
Save
How Aussies plan to improve their savings habits in 2022
Travel is the top savings goal of Aussies for the year ahead. Read more
More articles
OUR PLATFORMS AND BRANDS
- Accountants Daily
- Accounting Times
- Adviser Innovation
- Australian Aviation
- Broker Daily
- Cyber Daily
- Defence Connect
- Fintech Business
- HR Leader
- Independent Financial Adviser
- Investment Centre
- Investor Daily
- Lawyers Weekly
- Money Management
- Nestegg
- Property Buzz
- Real Estate Business
- Smart Property Investment
- SMSF Adviser
- Space Connect
- Super Review
- The Adviser
- Wellness Daily
- World of Aviation
EVENTS AND SUMMITS
- ACE25 The Accounting Conference and Exhibition
- Adviser Innovation Summit
- Australian Accounting Awards
- Australian AI Awards
- Australian Aviation Awards
- Australian Aviation Summit
- Australian Broking Awards
- Australian Cyber Awards
- Australian Cyber Summit
- Australian Defence Industry Awards
- Australian Law Awards
- Australian Law Forum
- Australian Space Awards
- Australian Space Summit
- Australian Wealth Management Awards
- Australian Wealth Management Summit
- Better Business Awards
- Better Business Summit
- Broker Innovation Awards
- Broker Innovation Summit
- Budget Summit
- Commerical Finance Awards
- Corporate Counsel Summit
- Defence & National Security Workforce Awards
- Fund Manager of the Year Awards
- ifa Excellence Awards
- Lawyers Weekly 30 Under 30 Awards
- New Broker Academy
- Partner of the Year Awards
- Partner Summit
- REB Awards
- Rising Star Awards
- SME Bootcamp
- SMSF Technical Strategy Day
- Super Fund of the Year Awards
- Women in Finance Awards
- Women in Finance Summit
- Women in Law Awards
- Women in Law Forum
LEARNING AND EDUCATION
MOMENTUM MARKETS NETWORK
LINKS
STAY CONNECTED
Make your nest egg grow. Register now for nestegg updates.