Intense cost of living pressures cause rising distress among Aussies ahead of RBA decision

Collage of a two-faced woman.

New data reveals that nearly half (46%) of Australians are experiencing ‘elevated distress’ due to cost of living pressure, particularly those who are “middle-age, middle-wage”. A further 23% report growing distress over housing affordability, up 2% from the December quarter. 

As the Reserve Bank deliberates its next cash rate decision today, calls for the central bank to consider “human, not just economic, wellbeing” have renewed.

Despite determination to save money, rate hikes leave many Aussies behind

Collage of a distressed woman.

RBA governor Philip Lowe has maintained that unchecked inflation’s ‘corrosive’ effect hurts vulnerable Australians more than rate hikes. 

In this, he argues, the central bank’s aggressive monetary policy may hurt but will ultimately safeguard the long-term welfare of Australians, since it theoretically ensures the smoothest dip in the business cycle while avoiding a recession

However, Suicide Prevention Australia – who supplied the data in its latest quarterly Community Tracker report – urged the RBA to consider the “human face” behind today’s interest rate decision. 

“We’re deeply concerned about the impact that [the] cost of living is having on Australians,” states CEO Nieves Murray.

“When we are talking about suicide, it’s important to remember that every number represents a human life and a cascade of grief and healing across the impacted communities.”

Suicide Prevention Australia’s data matches similar findings from the new NAB Australian Wellbeing Survey, which found that half of Aussies (51%) are concerned by the cost of living. 

“Australians are more engaged with their finances than they have been for a long time, in part due to their concerns around increased living costs,” says NAB personal banking executive Mark Baylis.

But despite the increased attention and effort to build up their savings, 20% of Aussies told NAB they have fewer savings now than they did in December. 

Both data sets serve as a timely reminder that mental health and money can be closely correlated. 

Lifeline 13 11 14. Mental health resources.

Compare high interest savings accounts

Mozo may receive payment if you click products on our site. We don’t compare the entire market, but you can search our database of 250 savings accounts.
Last updated 12 December 2024 Important disclosures
  • Savings Maximiser

    5.50% p.a. (for $0 to $100,000)

    0.55% p.a.(for $0 and over)

    Yes up to $250,000

    Deposit $1,000 into a personal ING account, make 5 eligible transactions with a linked Orange Everyday account and grow the balance each month.

    Great variable rate every month when you grow your balance each month in addition to other eligibility criteria. No ING fees to pay. Save even more with ING Everyday Round Up. Mozo Experts Choice Awards Everyday & Savings Bank of the Year winner for 2024.^

    Compare
    Details
  • Bonus Saver

    5.00% p.a. (for $0 and over)

    0.50% p.a.(for $0 and over)

    Yes up to $250,000

    Bonus interest for the first four months from the account opened date. No minimum balance required. No monthly or ongoing fees or withdrawal penalties. Manage your money easily via phone or online banking or via the BCU Bank app.

    Compare
    Details
  • Bonus Saver Account

    5.00% p.a. (for $0 to $250,000)

    0.05% p.a.(for $0 and over)

    Yes up to $250,000

    Deposit at least $20 each month and make 5 Visa Debit transactions with a linked Glide account.

    Open a Bonus Saver Account in under 5 minutes. There are no fees to pay or penalties for withdrawing money. Get a seamless personalised insights and online statements via the My State Bank app.

    Compare
    Details
  • MoneyMAX Account

    No Current Offer

    4.70% p.a.(for $1 and over)

    Yes up to $250,000

    Unlimited access 24/7 via Banking App, Phone & Internet Banking. Interest is calculated daily and paid monthly. No transaction fees or monthly service fees. No minimum balance or withdrawal restrictions. Online access only.

    Compare
    Details
  • Smart Saver Account

    4.50% p.a. (for $0 and over)

    0.05% p.a.(for $0 and over)

    Yes up to $250,000

    Increase account balance by any amount and make no more than two withdrawals

    Work towards your savings goals with this account. Earn bonus interest when you grow your balance and make no more than 2 withdrawals each month. Earn a guaranteed standard rate of interest each month on your savings. No monthly account keeping fees to pay. Use the app or internet banking to manage your account 24/7.

    Compare
    Details

^See information about the Mozo Experts Choice Savings Account Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.