Save
Will low wage growth stop Aussies from reaching their financial goals?
Inadequate income and the high costs of living are providing barriers for Australians who have put financial goals top of mind in the new year, according to a major bank.

Will low wage growth stop Aussies from reaching their financial goals?
Inadequate income and the high costs of living are providing barriers for Australians who have put financial goals top of mind in the new year, according to a major bank.

In the study of 1,000 Australians by ME, over half (52 per cent) said their income – or lack of – was the key barrier to achieving their 2020 financial goals, followed closely by the cost of living expenses (48 per cent).
The latest mid-year budget update from the Australian Treasury showed projected wage growth will fall from 2.75 per cent in the April budget to 2.5 per cent over the next two years, before returning to 3 per cent in 2022-23.
The Reserve Bank of Australia has previously noted wage growth of 2 and 3 per cent will be the new normal as the economy continues to suffer from ‘spare capacity’.
ME money expert Matthew Read said, “When incomes don’t rise in line with expenses, households find it more difficult to save, putting their financial goals under pressure.”
Other barriers to achieving financial goals cited by respondents include a lack of discipline (21 per cent), lack of financial knowledge (13 per cent) and a bad attitude (5 per cent).
Overall the study found a minority of respondents (25 per cent) said they were ‘very likely’ to achieve their goals, indicating a general lack of confidence in the ability of households to achieve their financial goals.
When asked to rank the importance of certain financial goals, the top five most important goals were revealed to be:
- Saving for a holiday, car or expense other than a home;
- Building up ‘rainy day’ savings;
- Saving enough to buy a property;
- Reducing expenditure on ‘expensive’ habits; and
- Not building up any more debt.
About the author

About the author


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

Expenses
Telstra set to refund 10,000 customers
Ten thousand past and present Telstra customers are entitled to a refund due to being overcharged a total of $2.5 million. ...Read more

Expenses
iSelect in hot water for energy plan comparisons
Comparison tool iSelect has been ordered to pay $8.5 million in penalties for making false and misleading representations about its electricity comparison service. ...Read more

Expenses
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. ...Read more

Expenses
The financial products giving Australians the most grief during COVID-19
The Australian Financial Complaints Authority (AFCA) has received 7,420 complaints about financial products since the onset of the pandemic. ...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

Expenses
Telstra set to refund 10,000 customers
Ten thousand past and present Telstra customers are entitled to a refund due to being overcharged a total of $2.5 million. ...Read more

Expenses
iSelect in hot water for energy plan comparisons
Comparison tool iSelect has been ordered to pay $8.5 million in penalties for making false and misleading representations about its electricity comparison service. ...Read more

Expenses
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. ...Read more

Expenses
The financial products giving Australians the most grief during COVID-19
The Australian Financial Complaints Authority (AFCA) has received 7,420 complaints about financial products since the onset of the pandemic. ...Read more