St.George Bank is encouraging people to have a think about their New Year’s financial resolutions following its new research, which reveals nearly 70% of respondents are concerned about their finances in 2017.
The research commissioned by St.George shows the main reasons for concerns in 2017 are the Australian economy (55%), housing affordability (44%) and household debt level (42%).
Saving is top of mind for Aussies in the new year with 34% ranking it as their number one financial priority, followed by paying down debt (25%), and staying afloat (23%). Saving for a holiday or travel was the most popular reason to save, followed by saving for a rainy day, and saving to buy a home.
St.George General Manger for Retail Banking Ross Miller said, “As we enter the New Year, now is a great time to reassess your finances and commit to making positive financial goals that can help make a difference to your hip pocket.
“Our findings show nearly half of Aussies surveyed felt unhappy with their overall financial health in 2016, and the majority of those are aged 18-24 and 45-54.
“However it’s positive to see all age groups said creating a budget and sticking to it will help them achieve a better financial outcome in 2017. Once the festive season is behind you, it’s time to take a fresh look at your 2016 finances and with a bit of planning and budgeting, 2017 could be a financially rewarding year.”
According to the research, the majority of 18-24 and 45- to 64-year-olds felt they need to save between $5000-$10,000 to reach their financial goals in 2017, while those 25-44 need to save more than $30,000, and those 65 and over need to save between $1000-$5000.
The biggest financial challenges in 2017 for Aussies are cutting back on discretionary spending (39%), getting personal debt under control (29%), maintaining a lifestyle during retirement (28%), and saving enough for a house deposit (28%).
“It’s no surprise to see that Millennials are keen to get their foot on the property ladder in 2017, while maintaining a lifestyle during retirement is really important for Baby Boomers.
“As a family bank, St.George has a variety of solutions for Aussies of all ages, including our Family Pledge product where home buyers can have a family member guarantee your loan to help you get started.
“We encourage Aussies to come into a St.George branch to start the conversation about their financial goals in 2017 – whether that be buying a home, planning for retirement, or getting your debt under control – our friendly bankers are here to help,” Ross added.
Key findings
- Nearly 70% (68.9%) of respondents are concerned about their finances in 2017
- The main reasons for their concerns are the Australian economy (55.4%), housing affordability (44.2%), household debt level (41.9%) and job insecurity (39.5%)
- Respondents aged between 18-34 are most concerned about housing affordability, while those aged 35 and over are most concerned about the Australian economy
- Saving money in 2017 is the top financial priority for more than a third of respondents (34.5%), followed by paying down debt (25.8%), and staying afloat (23.1%)
- Saving for a holiday or travel was the most popular reason to save, followed by saving for a rainy day, and saving to buy a home. Travel topped the list for those aged 45 and over, while those aged 18-44 prioritised saving to buy a home or investment property
- The biggest financial challenges in 2017 for respondents are cutting back on discretionary spending (39.7%), getting personal debt under control (29.4%), maintaining a lifestyle during retirement (28.3%), and saving enough for a house deposit (26.9%)
- 55.9% of respondents said creating a budget and sticking to it will help them achieve a better financial outcome in 2017.
- Nearly half of respondents (47.2%) felt unhappy with their overall financial conditions in 2017
- The majority of 18-24 and 45- to 64-year-olds need to save $5000-$10,000 to reach their financial goals for 2017, while those 65 and over need to save $1000-$5000, and those 25 to 44 need to save more than $30,000.
