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.

 

[Rienie]

Most Australians don't have anything extra. It has become concerning. Life is so expensive and so many people live day to day. I live with my children because it's just better for me but there are others who are not in a position to do that. The rich are getting richer.

 

[gamiry]

Most Australians don't have anything extra. It has become concerning. Life is so expensive and so many people live day to day. I live with my children because it's just better for me but there are others who are not in a position to do that. The rich are getting richer.

who came up with this idea? They obviously live on another planet. The rich get richer and the normal people only get their pockets picked and a kick in the teeth. These people need to get a real life.

 

[Cheezil]

Many here prob can't even muster $1000 far less than $4000!
All my working life I've had to live from pay to pay & have never been able to afford health insurance & many other basic things (inc food at various times)! Even when on shiftwork/decent pay things were really tight (thanks to paying out 2 exes in property settlement/mortgages) & raising a family (inc step kids), etc over the years!
Thankfully things are better for me now I'm 62yo & single & have no mortgage or debt, but still have to be very careful/budget hard, working only part time now
Things definitely seemed much easier financially in the late 70's (when i started first job on $80 per wk wages & paid $25 wk to rent a flat) & early 80's (buying first home, etc) than now. Something has gone horribly wrong in this country, that's for sure!
Hopefully the continuing highlighting of cost of living crisis brings relief for people in need, especially homeless & those unable to afford food!
Things need to change or we'll become 3rd world country

 

[NotNats]

I dont even have $100 extra in case

 

[Veggiepatch]

Geez 4000 cents is looking grim, let alone $4000!

 

[RFG]

I have no emergency fund or life insurance in place. I only have a funeral plan in place which I pay monthly. No mortgage either but I do pay rent. Just over 12 months ago I did have a little saved up but the extra cost of living has consumed that and had to replace my washer and fridge within a month of each other. With the exception of a coffee only once a week, I don't dine out, don't get take away, don't holiday and I very rarely shop for clothes or houesehold goods. At least at 70 odd years of age you do not require much other than funding your cost of living, but that is very draining on a pension. Worked hard all my life and unfortunately fell ill when in my 50's and had to draw on my super to survive. I am far worse off now than ever before in my life and it is degrading.

 

[gamiry]

Many here prob can't even muster $1000 far less than $4000!
All my working life I've had to live from pay to pay & have never been able to afford health insurance & many other basic things (inc food at various times)! Even when on shiftwork/decent pay things were really tight (thanks to paying out 2 exes in property settlement/mortgages) & raising a family (inc step kids), etc over the years!
Thankfully things are better for me now I'm 62yo & single & have no mortgage or debt, but still have to be very careful/budget hard, working only part time now
Things definitely seemed much easier financially in the late 70's (when i started first job on $80 per wk wages & paid $25 wk to rent a flat) & early 80's (buying first home, etc) than now. Something has gone horribly wrong in this country, that's for sure!
Hopefully the continuing highlighting of cost of living crisis brings relief for people in need, especially homeless & those unable to afford food!
Things need to change or we'll become 3rd world country

4 my first pay was 4 pound 5 shillings a week as a florist. I also lost badly because gov'ts of the time believed that men paid everything to do with the home inc the mortgage. Final sale of Victorian property saw me with a cheque for $76. 40. Husband got the rest after I'd been paying $600 per fortnight and he paid nothing because his mother told him I earned enough to keep us so he didn't need to put anything in. I finally "share farmed" with a woman I worked with. I did all the work at home, went to work, cared for the animals, cats, dogs and sheep. She did nothing except get a shonky solicitor to take my name off the deeds and sold the property out from under me. I lost $126,000 and she got everything. Any wonder I've lived alone for almost 30 years.

 

[Nana Zorak]

Most of us can't raise $1,000 let alone $ 4,000 we all are harder up now than ever before especially under Labor.

 

[Babbie]

Most of us can't raise $1,000 let alone $ 4,000 we all are harder up now than ever before especially under Labor.

Not according to Albo, everyone is doing fine!

 

[mOiOz]

It's more like 3 in 5 that don't have it...! Wake up!

 

[VikkiM]

Life insurance is of no benefit once you hit 65..
life insurance is beneficial if you have a mortgage, young children or other higher debts.
my husband and I had life insurance as part of our Super, $200k each, then as we paid out everything we dropped it to $100k each, about 8 yrs ago, I found that the cost of maintaining this kept going up significantly, as we were completely debt free, we cancelled both policies. We then looked a our health insurance and decided having hospital cover was a waste of money, so we only pay for the extras, this reduced our premiumS by several thousand dollars, we now only pay $800 a yrs for both of us. The money we saved, would be more than enough to cover any hospital stay.

 

[Andrew]

I had life insurance for many many years. It was mainly for family and mortgage protection should anything happen to me. Every five years you enter a higher risk stage and your premium increases. It got to the stage where l was reducing the amount of cover l had to lower the cost, till l was paying too much for too little and cancelled the policy. Fortunately we don't have a mortgage, and no debts. Others are less fortunate.

 

[Barbara V]

Saved up for replacement air con, really needk it in WA ,so now I have start all over again which will be hard with prices rising on everything

 

[IAN3005]

Many here prob can't even muster $1000 far less than $4000!
All my working life I've had to live from pay to pay & have never been able to afford health insurance & many other basic things (inc food at various times)! Even when on shiftwork/decent pay things were really tight (thanks to paying out 2 exes in property settlement/mortgages) & raising a family (inc step kids), etc over the years!
Thankfully things are better for me now I'm 62yo & single & have no mortgage or debt, but still have to be very careful/budget hard, working only part time now
Things definitely seemed much easier financially in the late 70's (when i started first job on $80 per wk wages & paid $25 wk to rent a flat) & early 80's (buying first home, etc) than now. Something has gone horribly wrong in this country, that's for sure!
Hopefully the continuing highlighting of cost of living crisis brings relief for people in need, especially homeless & those unable to afford food!
Things need to change or we'll become 3rd world country

Become... we are a third-world country

 

[Knell]

Become... we are a third-world country

False! Off you go - Somalia perhaps?

 

[Babbie]

False! Off you go - Somalia perhaps?

Agree, we do not live in a third world country. Perhaps he has not travelled to a third world country!

 

[Knell]

Agree, we do not live in a third world country. Perhaps he has not travelled to a third world country!

Or just a critic of everything about Australia...or generally everything.

 

[Veggiepatch]

Become... we are a third-world country

Fe-fi-fo-fum

Do I detect the smell of a ten pound Pom?

 

[MariaG]

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.