New consumer research findings ahead of the Federal Budget reveal that building up savings is the current top financial priority for Australians.
The research conducted for Australia’s leading specialist insurer TAL shows that saving is the top priority for all key demographic groups, with 100% of those aged 18-24 listing this as a current financial priority.
However, the next top current financial priority is spending money for leisure, even for those who are not working and those aged 50-69.
High on the list are saving for holidays and saving for retirement across all demographics, but pleasingly financial protection via life insurance is also high on the list, especially for generations Y and X (64% each).
TAL Group CEO Jim Minto said the findings show that while saving is the top priority, Australians are also adopting a “live for the moment” attitude by aiming to increase leisure spending and holidays above any other tangible financial outlays.
“These results from our ongoing research into consumer financial behaviour suggest people acknowledge the reality of needing to create greater personal independency by identifying saving and financial protection in the top five of 12 priorities. While doing this, they are clearly dreaming of and planning for the things they want to do while not working,” he said.
“In a way people are escaping from the perceived grind of financial pressure of everyday life, but I am pleased life insurance as a form of protection is high on the agenda of priorities because it means people understand how important it is.”
While building up savings is the top priority at 96%, 81% of people say the second priority is increasing funds available for activities such as dining out, theatre/cinema and other recreational spending. This is followed by saving for a holiday at 78%, saving for retirement (76%) and life insurance for financial protection (58%).
The poll was conducted among 1,266 Australians and it asked people to rate a number of financial goals as either ‘very important’, ‘quite important’ or ‘not at all important’ across 12 categories including buying a car, a home, new technology, retaining/reskilling, looking after dependents, children’s education and investment property.
Mr Minto continued: “While domestic budget pressures and those of the wider economy are clearly playing on people’s minds, Aussies have good times on the immediate horizon which is a good sign for the nation.”
Other key findings
– Improving the financial protection of family through life insurance is a top priority for 64% of Gen X and Gen Y, however Baby Boomers lag behind at just 46%.
– Younger generations rated fundamental requirements such as a job, car and home as higher priorities than older people, but saving for a holiday was almost equally represented as a top financial priority for Gen X (76%), Gen Y (80%) and Baby Boomers (78%).
– Retirement planning was also a key financial priority for the key generations: Baby Boomers (84%), Gen X (84%) and Gen Y (61%).
Click for Table 1: The financial priorities of Australians (% rating as very or quite important)
Leave a Comment
You must be logged in to post a comment.