Australians’ overall financial confidence has dropped since earlier this year, according to a study by Suncorp Life.
The Suncorp Life Confidence Index measures how Australians are feeling about their financial wellbeing, and what factors are affecting our financial confidence.
The Index results revealed that our nation’s confidence has declined by 1.5 points since April 2010, particularly among key demographic segments such as:
- Young families
- Blue collar workers
- Single males
- Single females
- Empty nesters
Suncorp Life CEO, Geoff Summerhayes, explained that financial confidence is defined as: ‘Consumers’ sentiment towards their personal financial situation, in the context of the overall economy and their ability to weather the storms of financial adversity, either real or perceived.’
… one in four Australians are worried that they will not be able to manage increasing costs of living
“The factor that had the single biggest influence on financial confidence was that one in four Australians are worried that they will not be able to manage increasing costs of living,” said Mr Summerhayes.
“One respondent summed up the general mood, saying, ‘We are on shaky ground with prices rising but my wage still stays the same’,” Mr Summerhayes said.
According to the study, the six attributes affecting consumers’ financial confidence are:
- Being able to manage anticipated increases in the cost of living
- Having a savings buffer to cover periods where the main breadwinner is not earning income
- Financial know-how
- Feeling that they have financial control
- Believing they have enough superannuation to fund retirement
- Their debt to income ratio.
The Life Confidence Index results mirror the sentiments expressed by participants in an earlier study, also conducted by Suncorp Life, which revealed that 1 in 3 Australians are too scared to regularly check the balance of their superannuation following the GFC.
The Suncorp Life “Attitudes to Superannuation in Australia Survey” was released earlier this month and assessed consumers’ concerns about having enough money to retire on and related issues.
