Powered by MOMENTUM MEDIA
realestatebusiness logo

Subscribe to our newsletter

Financial comfort level reaches record high

Improvements in job availability and security were key contributors to household financial comfort reaching its highest level ever, according to a report by ME Bank.

In the six months to December 2014, ME Bank’s Household Financial Comfort Index rose 8 per cent to 5.78 out of 10 – the highest level reached in the index’s three-year history.

One of the major contributors to the overall rise was a 22-point net improvement in job availability. Those who said it would be easy getting a job within two months if they were unemployed rose from 36 per cent to 48 per cent, and those who said it would be difficult fell 10 points to 47 per cent.

A 12-point net improvement in job security was another key contributor to the overall rise in financial comfort. The proportion who felt secure in their job rose 6 points to 72 per cent, while those who felt insecure fell 6 points to 26 per cent.

The report found that further growth in asset values also contributed to the record-high confidence level, with comfort around investments and the ability to maintain lifestyle in retirement up 10 per cent and 12 per cent respectively.

Advertisement
Advertisement

ME Bank consulting economist and report co-author Jeff Oughton said the financial psychology of Australian households has changed dramatically for the better.

“Back in June 2014, overall household financial comfort had fallen 3 per cent to 5.33 out of 10,” he said.

Mr Oughton also said this was “the first time in the survey’s history that more people have reported it would be easy getting a job within two months if unemployed than those reporting it would be difficult”.

Financial comfort level reaches record high
mortgagebusiness

Latest News

Home loan applications continue to decline, according to the latest Equifax data.  ...

The non-major bank has announced “significant” home loan growth over the financial year 2022, up more than $1 billion. ...

New Zealand’s central bank has committed to another cash hike in the face of surging inflation, tacking on an extra 50 basis points. ...

VIEW ALL

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

Do you think the new NSW property tax will help or hinder first home buyers?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.