Now in its 10th year, AMP’s latest Financial Wellness report has revealed that two in three (66 per cent) working Australians are feeling financially stressed to some degree, with those aged 55 to 59 reporting the highest rates of moderate and severe stress (almost 40 per cent) as they prepare for retirement.
Despite this, only 13 per cent of those feeling moderately to severely stressed have sought help from a financial adviser, while 31 per cent rely on family and friends as their primary source when making financial decisions, followed by Google (27 per cent) and social media (15 per cent).
Furthermore, a third (35 per cent) of moderately to severely stressed respondents and 30 per cent of those feeling financially secure or mildly stressed reported seeking no sources for information, highlighting a potential market gap for financial advisers.
Unsurprisingly, those with a lower income, between $15,000 and $49,999, reported the highest rates of moderate to severe financial stress, with 32 per cent. However, those earning between $100,000 and $149,999 saw the most significant increase, jumping from 9 per cent in 2020 to 24 per cent in 2024.
Notably, the report found that cases of moderate to severe financial stress have increased almost across the board over the last four years, with only those earning over $150,000 seeing a decrease.
Underscoring the impact of this stress, the report found that more than half (54 per cent) say they never or rarely put extra money away for retirement, and 41 per cent of those moderately to severely stressed say their goals and dreams have changed due to the cost-of-living pressures.
“With rising financial pressures and people focused on meeting major short-term expenses, long-term planning is being compromised, with one in three saying they are never or are rarely planning for their financial futures,” AMP said.
Meanwhile, more than half (52 per cent) of Australians said they strongly believe that the cost of living will rise significantly in the next two years.
Commenting on the research findings, AMP Bank group executive Sean O’Malley encouraged Australians to seek assistance from financial services professionals to help them better manage their situation.
“It’s clear more Australians aren’t feeling secure with their finances, not surprising given cost-of-living pressures and housing unaffordability challenges,” O’Malley said.
“And while the research tells us that most are meeting their mortgage repayments, we know that savings rates are down and many are cutting back expenditure on household basics such as groceries and other more discretionary items such as streaming services and holidays.
“Amid these cutbacks, it’s also evident that many aren’t taking advantage of the support available to them, with a tendency to bottle up their financial worries, in turn, impacting their mental wellbeing.”
O’Malley added: “What seem like small things can make a big difference.”
