Shaky finances have Australians feeling vulnerable

More than 60 per cent of Australians between 31 and 40 years of age are feeling financially vulnerable, according to a new survey by financial planning group Ipac.

But only one third of the 800 people surveyed were taking active steps, beyond meeting minimum mortgage payments, to achieve financial security.

Ipac chief executive Peeyush Gupta said people described financial security as being financially independent. They ranked this as the third most important goal in their lives, after family and health.

“While money can’t buy you happiness, it is an enabler to achieve what matters in your life,” he said.

The most financially insecure were the “mortgage generation”, which Ipac describes as the group between 31 and 40-years-old. One in three in this age group said they would be in trouble if interest rates rose by more than 1 per cent.

The survey also looked at high-income earners — those earning above $100,000 a year. Among this group, 30 per cent felt financially insecure.

The main reason for this insecurity was the fear of redundancy.

“Australians are not prepared for the unexpected events that are much more common in 21st century life,” Gupta said.

“These events knock the feeling of financial security for six.”