Financial security is a significant concern for many Australians, and a recent study has shed light on just how precarious the situation is for a substantial portion of the population.

According to the latest research, one in five Australians would be hard-pressed to muster $4000 in the event of an unexpected expense.

The study, conducted by insurer NobleOak's Life Insurance Pulse Report, surveyed 1039 individuals aged between 30 and 69 years old in December 2023.

A significant 41 per cent of respondents expressed worry about their current financial situation.

One in five Australians reportedly don’t have an extra $4000 to shell out in an emergency. Image source: shurkin_son on Freepik.

Moreover, 35 per cent of those with a household income of $100,000 or higher admitted they didn't feel in full control of their finances.

The reasons behind Australia's dwindling financial confidence are multifaceted.

Experts point to the cost-of-living crisis, exacerbated by 13 interest rate hikes since May 2022, as a significant contributing factor.

The rising costs of housing, utilities, and groceries, coupled with stagnant wage growth, have left many Australians feeling the pinch.

The study also highlighted the correlation between financial security and life insurance.

Those without life insurance felt 10 per cent less confident about their family's welfare should something happen to them.

NobleOak's Director and Chief Executive, Anthony Brown, also noted that 70 per cent of those who felt a lack of control in their finances wished they could do more to feel secure.

'However, those who are likely to need life insurance the most financially are also the ones who are least likely to hold cover,' Brown said.

'Those with a lower household income and renters are least likely to be able to deal with a large, unexpected expense—typically the same demographic less likely to have life insurance.'

Interestingly, the research found a steady increase in the number of people purchasing life insurance since 2017.

This trend could be indicative of a growing awareness of the importance of financial protection in uncertain times.

Key Takeaways

• One in five Australians would be challenged to find $4000 in case of an emergency, as per new research from a life insurance service.
• Nearly half (41 per cent) of Australians surveyed are worried about their current financial situation.
• A higher proportion of those with a household income of $100,000 or more admitted to not feeling in complete control over their finances.
• The lack of financial confidence in Australia is attributed to the cost-of-living crisis and multiple interest rate rises since May 2022.

What are your thoughts on these findings, members? Do you have an emergency fund or life insurance? Share your thoughts and tips in the comments below.

 

[Babbie]

I am getting fed up to the teeth with these expert observations.
The same people who do their research on the back of a $1mill grant.
Being on the pension is another realm. Until they are in the same position as us, all the stats and surveys and suppositions mean squat.
There used to be a show on TV where wealthy business people were made to live 2 weeks on the same budget as pensioners or unemployment benefits.
It was an eye opener and they could not wait to go back to their entitled lifestyle.
Time for the experts and powers to be to have a go at the same experiment.

How do you know who is entitled and who is not? You sound very bitter!

 

[Veggiepatch]

I am getting fed up to the teeth with these expert observations.
The same people who do their research on the back of a $1mill grant.
Being on the pension is another realm. Until they are in the same position as us, all the stats and surveys and suppositions mean squat.
There used to be a show on TV where wealthy business people were made to live 2 weeks on the same budget as pensioners or unemployment benefits.
It was an eye opener and they could not wait to go back to their entitled lifestyle.
Time for the experts and powers to be to have a go at the same experiment.

Very similar to the hoo-ha that CEOs of major corporations and public entities spend a whole whopping night experiencing the hardships of the homeless.

In a wonderfully appointed tent, quality bedding and constantly present security. Sleeping rough, eh? Try doing it for six months or more, rain, hail or shine, at the whims of the ever present violent scums of society whilst going hungry and thirsty.

Sleeping rough is it Mr CEO? Your definition is when your kid leaves a piece of gold plated LEGO in your bed and roll on it. Bunch of frauds!

 

[Veggiepatch]

How do you know who is entitled and who is not? You sound very bitter!

Can you answer your own question? Most probably not!

 

[Knell]

This article is about Life Insurance so I don't understand why the us and them attitude.
Many Corporate Companies donate to the community and who knows how many or how much CEO's may or may not donate personally.
Just a few examples of the 2023 Corporate Community Investments examples -
Coles 151.9m
Woolworths 122.1m
Westpac 65.1m
Wesfarmers 23.7
Telstra 40.6m
NIB 6.6m

 

[Babbie]

Can you answer your own question? Most probably not!

Yes, not everyone who lives comfortably feels entitled . Some people work very hard and eventually enjoy the end result. Envy is a favourite pass time with many people in this country. Pity that so many in their twilight years are so bitter and miserable. Of course it is always someone else’s fault, never their own! Enjoy your evening and have a nice glass of red.

 

[Veggiepatch]

Yes, not everyone who lives comfortably feels entitled . Some people work very hard and eventually enjoy the end result. Envy is a favourite pass time with many people in this country. Pity that so many in their twilight years are so bitter and miserable. Of course it is always someone else’s fault, never their own! Enjoy your evening and have a nice glass of red.

Sorry but I don't partake in the nectar of the entitled! Vinegar with Red Food Dye 40. That's all it is.

 

[Babbie]

Sorry but I don't partake in the nectar of the entitled! Vinegar with Red Food Dye 40. That's all it is.

Oh dear! Suit yourself and don’t apologise, I don’t think anyone cares!

 

[MariaG]

How do you know who is entitled and who is not? You sound very bitter!

There is a difference between bitterness and being observant. I am not rich, however, am fortunate to live in my own home. I do however volunteer my time to a wonderful organisation, Life Church, in Newcastle who dedicate a huge amount of time and resources to the homeless, impoverished and anyone else doing it hard.
We have many more people coming through the door begging for a feed and support than we have well heeled organisations and individuals to offer support.
We see it every day. It is a very sad state of affairs, and, is escalating.
The article asks would you have $4000 for an emergency? It does not ask do you have a roof over your head, or a bed to sleep on every night? The numbers are climbing.
I am saying, there is a huge gap between people who have and those who have not.
When you see families come for help who have been sleeping in their car or in a tent in the bush, then the reality of the gap is more than obvious.

 

[Babbie]

There is a difference between bitterness and being observant. I am not rich, however, am fortunate to live in my own home. I do however volunteer my time to a wonderful organisation, Life Church, in Newcastle who dedicate a huge amount of time and resources to the homeless, impoverished and anyone else doing it hard.
We have many more people coming through the door begging for a feed and support than we have well heeled organisations and individuals to offer support.
We see it every day. It is a very sad state of affairs, and, is escalating.
The article asks would you have $4000 for an emergency? It does not ask do you have a roof over your head, or a bed to sleep on every night? The numbers are climbing.
I am saying, there is a huge gap between people who have and those who have not.
When you see families come for help who have been sleeping in their car or in a tent in the bush, then the reality of the gap is more than obvious.

I am not saying that things are not difficult for people, but it is not the fault of people who are not in the same boat. A lot of people are very bitter. It does not help the situation they are in and only affects the person carrying the grudge, no one else.

 

[Abby2]

Become... we are a third-world country

Totally agree

 

[MariaG]

I am not saying that things are not difficult for people, but it is not the fault of people who are not in the same boat. A lot of people are very bitter. It does not help the situation they are in and only affects the person carrying the grudge, no one else.

I don't believe I laid blame onto anyone.
I do believe there is a huge ignorance of the reality, and the article asked would you have $4000 if the need arose.
I say the question flies in the face of the reality that there are many people who are hidden in the shadows. They would not qualify the question with anything but bewilderment.

 

[Babbie]

I don't believe I laid blame onto anyone.
I do believe there is a huge ignorance of the reality, and the article asked would you have $4000 if the need arose.
I say the question flies in the face of the reality that there are many people who are hidden in the shadows. They would not qualify the question with anything but bewilderment.

I agree the situation is difficult. Government policy is not helping and things may get worse. I agree that more public housing is needed urgently. If you feel that strongly, have you thought about talking to your local MP? They may be receptive, just a thought.

 

[MariaG]

I agree the situation is difficult. Government policy is not helping and things may get worse. I agree that more public housing is needed urgently. If you feel that strongly, have you thought about talking to your local MP? They may be receptive, just a thought.

Yes. Our local member is very receptive but not effective.
If you don't live in Sydney, it's like another universe. Regional areas tend to be overlooked, but that's another old chestnut for me to fume about.

 

[Babbie]

Yes. Our local member is very receptive but not effective.
If you don't live in Sydney, it's like another universe. Regional areas tend to be overlooked, but that's another old chestnut for me to fume about.

Oh, that’s not good. Perhaps have a chat around election time, they will do anything to hold their seat. Good luck.