Middle Australia’s confidence in their solvency has plummeted to an all time low – especially among women – according to research commissioned by financial services group ipac.
Financial optimism is on the decline and people are concentrating on debt reduction rather than spending, the ipac Financial Security Index found.
Financial security dipped below 50 per cent for the first time since the index began in March 2006, with 44.7 per cent feeling secure, compared to 51.6 per cent in the last survey.
Money worries were strongest among women. More women felt insecure (43 per cent), than felt secure (38 per cent), the survey said.
Research house brandmanagement surveyed 885 people in the mass affluent demographic; an important group because they drive the discretionary investment spend of the economy.
“At a time of great prosperity we continue to find large numbers of Australians feel financially vulnerable,” ipac financial planning national head Sally Manion said.
“The reasons vary from mortgage stress, amplified by the threat of further rate rises, to the desire to keep up with the Joneses that has some people, particularly those on higher incomes, living beyond their means.”
According to the survey, more than a third (34 per cent) of those earning between $75,000 and $100,000 felt financially insecure while about a quarter of those on incomes of between $100,000 and $150,000 were concerned about their financial future.
