Aussies increasingly concerned about ‘making ends meet’: NAB report

Mortgage stress and payments may be an even greater concern but not as much as other cost-of-living pressures, major bank data has revealed.

The National Australia Bank (NAB)’s latest Financial Hardship report, released on Friday (3 March), has revealed that four in 10 Australians are experiencing ‘some form of financial difficulty’ — the highest number since the start of the pandemic.

Notably, of the 2,000 survey respondents, it found that despite rising interest rates, being unable to meet mortgage repayments was causing Australians the least amount of financial challenge (5 per cent).

The report’s key findings included:

- One in three Australians identify money as a significant cause of stress in their lives.

- Not having enough money for an emergency (21 per cent), not having enough money for food and basics (16 per cent). and being unable to pay a bill (14 per cent) were the most common forms of difficulty.

- One in five people had missed paying a bill in the past three months, mostly energy and water bills.

- More people living in rural and regional areas experienced financial difficulty than those in capital cities (33 per cent, compared to 30 per cent) and financial difficulty was more common among 18–29-year-olds and 30–49-year-olds than older age groups.

The types of hardship measured included being unable to pay a bill; unable to pay rent on time; unable to pay medical/health bills; not having enough for an emergency; not having enough to pay for food and basic necessities; unable to meet minimum credit card repayments; unable to pay their mortgage; and not enough money to pay off personal loans.

Ultimately, NAB’s report revealed “a shift in how the nation feels about their personal finances” with a quarter of Australians saying “they’re becoming increasingly concerned about making ends meet”.

NAB executive Mark Baylis acknowledged it was getting tougher for some people financially.

“We know most of our customers are in good shape but, for some Australians, financial difficulty might be an entirely new experience as a rising cost-of-living places increasing pressure on their personal finances,” Mr Baylis said.

“Our team speaks to more than 1,000 customers a day needing financial support. For most of these calls, it is the first time a customer has had to pick up the phone and say to the bank ‘I need help’, which we know can be daunting.”

For mortgagors specifically, Mr Baylis explained: “Whether it’s no interest loans to help buy school supplies for kids or a tailored approach to rolling off your fixed loan, we’re here to help and we’ll be with our customers as long as they need us.”

Cost of living impacting workplace changes

Employment and wages are also being affected by cost-of-living challenges, NAB’s quarterly Changing Workplace report released on Thursday (2 March) revealed.

The major bank explained the data as indicating that the ‘great resignation’ continues, as rising cost of living is ensuring salary is the “top focus” for jobseekers.

The NAB report found almost one in 10 Australian workers (8 per cent) had changed jobs in the past quarter and one in three over the past two years.

Rates of those considering a change were also higher, with almost a quarter of Aussies currently intending to leave their current jobs (24 per cent in Q4 vs 21 per cent in Q3), NAB explained.

According to the bank, with financial stress rising for many households due to the cost of living, salary shows up as the most important factor in finding a job, with seven out of 10 workers considering it “a high priority”.

The bank, however, outlined that despite the focus on salaries, only around half of those who switched jobs over the past year were earning more in their new role.

NAB group executive People and Culture, Susan Ferrier said employers looking to retain talent in these conditions had to be aware of the new challenges facing their workers.

“As we see the pressures of inflation hitting many Australians, I think employee wellbeing will need a very sharp focus. This is a workforce that has just lived through the many challenges of the pandemic,” Ms Ferrier said.

[Related: Brokers play a vital role as customers feel the pinch]