Save
Pandemic puts stopper in big spending
Two-thirds of Australians have seen their finances impacted by COVID-19, according to new research – and it’s affecting everything from holidays to houses and careers.
Pandemic puts stopper in big spending
Two-thirds of Australians have seen their finances impacted by COVID-19, according to new research – and it’s affecting everything from holidays to houses and careers.
AMP commissioned research to uncover the long and short-term impacts of the pandemic on the everyday Australian, finding 67 per cent have been impacted in a financial sense.
It’s also set to continue affecting many of them for the medium term – nearly half (49 per cent) of all individuals surveyed expect it will take them at least three months to return to a financial position similar to where they were at pre-COVID-19.
AMP Bank’s director of retail solutions and direct distribution, Michael Christofides, commented that “with talks of the recession and consumer confidence down, it’s clear that many Australians have been impacted by COVID-19, including having to hold on making significant financial decisions from retirement to travel to buying property”.
The research revealed the pandemic has forced 60 per cent of Australians to delay an overseas trip, which may be due more to travel bans than financial need.
But almost one-third (29 per cent) also revealed they have had to postpone purchasing a car.
The same proportion (29 per cent) have also had to push back a major event – such as a wedding.
A further 22 per cent have been forced to delay the purchase of a home, while nearly one-fifth of respondents (19 per cent) reported they have had to hold off on purchasing an investment property.
But the pandemic has not just impacted on Australians’ purchasing power, with one in five individuals surveyed in the research also stating that they have had to put off a career change due to COVID-19.
But it’s not all bad news, with Mr Christofides acknowledging that the pandemic “has pushed more Aussies to think about their personal finances”.
“We’re seeing Australians being more prudent with their saving and spending decisions, partially due to lockdown restrictions, but also relating to a desire to be prepared for any future rainy days,” he said.
AMP also flagged widespread hope of a silver lining – 39 per cent of Australians surveyed stated that while COVID-19 has been a big shock, it’s given them the opportunity to plan for their futures and get their finances in order.
A further 45 per cent of respondents indicated they are optimistic about their financial futures post COVID-19.
“Now more than ever, Australians are conscious of the importance of saving and preparing for the unpredictable,” Mr Christofides continued.
“There’s no doubt that COVID-19 has brought with it a number of challenges for Aussies, but the challenging climate has given some the opportunity to take a step back and re-evaluate their personal finance journeys.”
“Compared to earlier in 2020, there’s a sense that Aussies are taking this time to reset their financial goals and adopt more proactive financial behaviours, both in relation to saving and discretionary spending,” he concluded.
About the author
About the author
Expenses
1 in 2 Aussie pet owners spends on their pets more than themselves
Does owning a pet eat into your monthly budget? You’re not alone. ...Read more
Expenses
The real reason Sydney’s petrol prices are so high
Sydney fuel prices may seem like they’re soaring, but a recent study indicates that they may be cheaper than you think. ...Read more
Expenses
Morrison backs big pharma, turns back to developing countries
Big pharma is currently fighting to maintain intellectual property protections over COVID-19 vaccines, with Australia refusing to act despite having no pharmaceutical companies. ...Read more
Expenses
Half-price flight scheme launches today
Aussies are being offered half-price flights as the government looks to spur domestic travel to regions it has defined as key to economic recovery. ...Read more
Expenses
Insurance prices rise despite payout falls
The COVID-19 pandemic has seen insurer payouts fall by $500 million, but Australian consumers are continuing to pay more, the consumer watchdog has revealed. ...Read more
Expenses
CBA cops civil proceedings for overcharged interest
ASIC has commenced civil penalty proceedings in the Federal Court against the Commonwealth Bank over the bank charging an interest rate on business overdraft accounts that was substantially higher tha...Read more
Expenses
What are the top 10 most expensive cities in the world?
Logistical issues and currency fluctuations caused by the COVID-19 pandemic has seen the most expensive cities in the world drastically change, new research has revealed. ...Read more
Expenses
Sydney adviser pleads guilty to misappropriating $2.9m
A Sydney financial adviser has pleaded guilty to misappropriating $2.9 million in his clients’ funds. ...Read more
What Omicron means for property, and are units right for first-time buyers? What is equity crowdfunding? Are industry super funds tapping into member funds to save their skins?
Listen now
Will housing affordability improve in 2022? Will buy now, pay later become the norm? Why are Aussies staying in failing super products?
Listen now
Who really benefits from crypto ETFs? How will the RBA respond to rising inflation? Could a mandate help address unpaid super?
Listen now
How the post-lockdown period will influence property, what the soaring NFT market means, and defining financial wellness
Listen now
Expenses
1 in 2 Aussie pet owners spends on their pets more than themselves
Does owning a pet eat into your monthly budget? You’re not alone. ...Read more
Expenses
The real reason Sydney’s petrol prices are so high
Sydney fuel prices may seem like they’re soaring, but a recent study indicates that they may be cheaper than you think. ...Read more
Expenses
Morrison backs big pharma, turns back to developing countries
Big pharma is currently fighting to maintain intellectual property protections over COVID-19 vaccines, with Australia refusing to act despite having no pharmaceutical companies. ...Read more
Expenses
Half-price flight scheme launches today
Aussies are being offered half-price flights as the government looks to spur domestic travel to regions it has defined as key to economic recovery. ...Read more
Expenses
Insurance prices rise despite payout falls
The COVID-19 pandemic has seen insurer payouts fall by $500 million, but Australian consumers are continuing to pay more, the consumer watchdog has revealed. ...Read more
Expenses
CBA cops civil proceedings for overcharged interest
ASIC has commenced civil penalty proceedings in the Federal Court against the Commonwealth Bank over the bank charging an interest rate on business overdraft accounts that was substantially higher tha...Read more
Expenses
What are the top 10 most expensive cities in the world?
Logistical issues and currency fluctuations caused by the COVID-19 pandemic has seen the most expensive cities in the world drastically change, new research has revealed. ...Read more
Expenses
Sydney adviser pleads guilty to misappropriating $2.9m
A Sydney financial adviser has pleaded guilty to misappropriating $2.9 million in his clients’ funds. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
