Australians are concerned about their financial wellbeing, with 47 per cent of households fearing they cannot maintain their current lifestyle, ING Direct has found.
The ING Direct Household Financial Wellbeing Index - which measures household sentiment across income, debt, investments and savings - found the financial wellbeing of Australian households declined in the second quarter of 2014.
ING Direct executive director John Arnott said it is worrying that maintaining rather than improving lifestyle has become the key concern for households.
“Forty-seven per cent of Australian households fear not being able to maintain current lifestyle,” the index found.
“[While] in a bid to preserve their lifestyle, 41 per cent of households plan to cut living costs, 44 per cent will save more and 32 per cent will cut back discretionary spending,” it stated.
Mr Arnott said households are taking responsibility for protecting their financial wellbeing.
“Households are taking responsible steps to preserve and even improve their financial wellbeing, with many looking at ways to actively cut costs rather than relying on increased debt, which can lead to greater financial pain,” Mr Arnott said.
The index also found 25 per cent of people were concerned over job stability in maintaining their financial wellbeing, while 40 per cent of “Gen Y households” were also concerned.
Eighteen per cent of households were concerned about increasing debt levels compared with 25 per cent of “Gen Y households”
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