Aussies seek advice as financial stress doubles
One in two employees say they are likely to seek financial advice in the next 12 months, according to AMP.
In the firm’s annual Financial Wellness survey of over 2,000 Australians, including 1,717 employees, the number of people who had severe or moderate financial stress since 2020 had “increased markedly” while those who felt financially secure had declined. This was particularly the case for female, part-time workers and single parents.
Fears included paying bills, meeting mortgage payments, the impact of higher interest rates and failing to meet financial goals.
“Financial stress is weakening financial wellness, damaging psychological and employee wellbeing and affecting employee performance,” AMP said.
Looking at a business perspective, 21% of employees said their productivity had fallen as a result of financial stress, double the 2020 figure, and this rose to 31% for those aged 18-29.
In an effort to respond to this, steps people were taking included setting up auto-payments, cutting their spending, prioritising the mortgage and selling down investments or assets.
The top reason for seeking help was to help with savings plan (38%), followed by helping to plan retirement (36%). Other reasons included help to manage investments, to make investments and help with general financial management.
Stephen Owen, AMP’s general manager for member engagement said: "Following an emotionally unsettling two to three years with COVID-19, we’re now facing into rising interest rates, general cost of living pressures, a property downturn and jittery investment markets.
"What’s particularly concerning is the impact on women, single-parents and younger Australians, where stress levels have increased the most.
“But there are reasons to be optimistic – unemployment is at historic lows, our economy is in relatively robust shape, despite inflationary pressures, and new flexible ways of working are seemingly here to stay, easing the logistical pressure cooker for many families and reducing household expenditure. Importantly, the rising stress has also been a catalyst for many Australians to engage with their finances – more of us are recognising that simple steps such as setting financial goals, establishing a budget and accessing credible online educational resources can have a positive impact on financial peace of mind."Q
AUTHOR
Laura Dew
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