Women, renters, low-income earners, and the unemployed are feeling more anxious than Australians over 65, high-income earners, or house owners according to the latest NAB wellbeing report.
In its latest Beyond GDP: Insights into wellbeing and the role money and finances play in our lives, the NAB found that overall household financial stress fell slightly in the past 12 months but more Australians feel they will be worse off in the next 12 months.
The survey showed a direct correlation between wellbeing and income. Overall, wellbeing was highest in the $100,000+ pa income group (unchanged at 66.9 pts) and stepped down in each income group to 59.8 pts in the lowest income group (up from 58.5 pts in Q2).
The report also found that debt stress is up slightly but is notably higher for payday loans with more than $6,000 on average outstanding.
The NAB Australian Wellbeing Index inched up to 65.2 pts in Q3 (64.9 pts in Q2) and continues to trend slightly above the survey average (64.5 pts).
Australians, however, reported modest deteriorations in their perceptions of their life worth, life satisfaction, and happiness but were noticeably less anxious.
Wellbeing is highest in Tasmania and Queensland and lowest in Victoria. Australians living in rural areas have the highest wellbeing, marginally ahead of those in capital and regional cities. This was mainly driven by much lower levels of anxiety.
Overall, wellbeing remains highest in the over-65 age group but has eased. Older Australians continue to report much higher wellbeing for all measures, particularly anxiety when compared with younger people.
However, many in the older age bracket are still concerned about not having enough to finance retirement that remains the biggest driver of financial stress (and by some margin), though the level of stress eased slightly and is well below average.
The next most common drivers are providing for our family’s future, non-essentials, home improvements & maintenance and medical bills & healthcare.
Having enough money to meet minimum credit card payments again caused the least stress followed by having enough for food and basic necessities.
Other “high” wellbeing groups include higher-income earners, retirees, widows, married people, and home owners.
House owners report higher wellbeing scores than do apartment owners for all measures and are much less anxious. Wellbeing remains lowest among the unemployed, lower income earners, and young women.
The report found that slightly more Australians made inroads into reducing their household debt levels in Q3 (-8 per cent). Credit cards are still the most widely held debt among Australians (39 per cent held this debt in Q3 v 36 per cent in Q2) ahead of home loans (32 per cent).
Around one in five (18 per cent) Australians had a buy now, pay later (BNPL) loan but many more did in the 18–29 age group (28 per cent).
Around 16 per cent had a personal loan but again noticeably more among those aged 18–29 (27 per cent). Around one in 10 (11 per cent) had loans from family or friends though almost twice as many 18–29-year-olds (19 per cent) did, while 5 per cent had payday loan debts but again almost twice as many in the 18–29 age group.
