What's worrying Australian workers?
Almost half of Australia’s workforce is worried about their current financial situation, and one-third say finances are a major source of stress in their life.
The first Australian Financial Fitness Index, launched by Map My Plan in November 2015, revealed the extent of financial worry amongst Australian workers, whether full-time, part-time or casually employed.
And even though 54% of Australian workers say they’re “doing OK and making ends meet”, this sense of feeling in control of their finances may be misguided for some.
So what is causing all this financial stress? We break down the data into four key concerns.
No financial safety net
The most pressing financial fear – for 63% Australian workers – is not having enough emergency savings.
Financial guidelines recommend having three to six months’ of living expenses put aside for a rainy day. Yet an alarming one in ten Australian workers would have to immediately increase their debt if they lost their job, while 40% say they could last two months or less.
Even then, they may be underestimating their monthly expenses – given 64% have less than $5,000 in savings readily available.
In line with other research, it’s also clear Australians are underinsured – especially when it comes to protecting their biggest asset of all, their ability to earn an income. Just 23% say they have income protection insurance, and 25% have disability, accident or trauma insurance.
$0. 15% of Australian workers save nothing every month.
Everyday expenses are out of reach
While a relatively small 5% of Australian workers say they’re having a lot of difficulty making ends meet, 38% are worried that won’t be able to buy a home, and 30% fear they can't keep up with mortgage payments or credit card debt.
Given Australia’s Medicare safety net and high uptake of private health insurance, it’s also concerning to see 44% believe they might be unable to cover their healthcare costs.
Almost one in four Australians are losing sleep over their personal financial situation
Trapped by financial fears
For 54% of Australian workers, losing their job and being without an income is a pressing concern. Given so many wouldn't have sufficient savings to manage more than two months, that’s not surprising. But what does that really mean?
True financial freedom means being able to make choices about they way you live – and work. Yet an overwhelming 61% say they can’t afford to quit their job if they want to, and one in three can’t afford to do the things they want to in their life.
Retirement plans at risk
57% of Australian workers are worried they won’t be able to retire when they want to, and 54% say they might have to rely in the pension. Despite this, they’re not seeking professional advice, with just 14% using a financial planner. Cost is the overwhelming barrier – for 75% of Australian workers.
So what if there was a free tool to help you feel more in control of your personal finances? Something that could take some of those worries away by given you simple goals to work towards?There is. Try Map My Plan for yourself today.