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1 Households Feeling Financially Comfortable Now

Households feeling financially comfortable now, but pessimistic about the future.

According to the June 2017 survey, the only component of household financial comfort that is declining is ‘expectations for household’s financial situation in the next year’ – down 4% over 18 months to June 2017.

Rising cost of necessities feeding future concerns

One of the key reasons why a growing number of households are expecting their financial comfort to worsen in the future is related to the ‘cost of necessities’. 

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2 Potential Mortgage Rate Rises A Key Concern

Potential mortgage rate rises also a key concern

Further to the cost of necessities, around a third of households expect to be worse off financially if the RBA raises the official cash rate by 1% from its record low of 1.5%, including around half of those with a mortgage.

In addition, a growing number of households are expecting their ability to manage debt to deteriorate in the future – especially if the RBA cash rate rises significantly.

Subdued income growth and underemployment compounds concerns

Wage growth for the majority of Australians remains historically low. Around 44% of households reported their ‘income remained the same’ and over a quarter recorded their ‘income decreased’ over the past six months.

Furthermore, households reported a relatively high rate of underemployment. A significant number of part-time workers and casual employees said they would prefer more hours and full-time work.

3 Financial Comfort Vs Income Change

about this report.

The ME Household Financial Comfort Report provides in-depth and critical insights into the financial situation of Australians based on a survey of 1,500 households. The survey is designed, developed and produced biannually by industry super fund-owned bank ME with assistance from DBM Consultants and Economics & Beyond.

This edition presents the findings from the 12th survey, conducted in June 2017.

download the report

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