Financial confidence showing signs of improvement
Financial confidence has been steadily growing over the third quarter, despite Australians being somewhat uncomfortable with their level of assets and investments, according to the ING Direct Financial Wellbeing Index.
Compiled by Galaxy Research and using the online responses of 1,009 households, the index found 18 per cent of Australian households own a rental property as an investment, while more than one in four (30 per cent) have sharemarket investments.
ING also found 47 per cent of all households have no assets or investments outside of the family home, while 18 per cent do not hold any assets at all.
Despite these figures, 28 per cent of Australians are prepared to start spending again with financial confidence rising to 105.9 over the third quarter - a marked increase from 104.8 at the beginning of the year, the index found.
According to ING Direct Australia chief executive officer Don Koch, financial confidence has been gaining confidence because households have been paying down debt and increasing savings.
Surveyed in late September and early October, the index showed 54 per cent of households said they were very comfortable with credit card debt, while 59 per cent said they were very comfortable with their mortgage debt.
"This prudent attitude shows that Australian households are well placed to withstand external economic shocks," Koch said.
"It also means households will be in a better position to return to responsible spending habits."
AUTHOR
Andrew Tsanadis
Recommended for you
Research conducted by Elixir Consulting and Lonsec has quantified the efficiency gains of using managed accounts in financial advice practices in hours per week saved.
WIth only one-quarter of advice practices actively seeking feedback from clients, the Financial Advice Association Australia has emphasised why this is a critical tool for client retention.
As the government announces a public inquiry into the collapse of Dixon Advisory, risk adviser Richard Silberman has detailed the three areas that typically lead to an AFSL's collapse.
With a growing number of advisers now running their own business, they need to pivot their career identity to being a business owner rather than just as a financial adviser if they want to futureproof their business.
