News Corp readers “frustrated” with the rising cost of living

Thursday 13 November 2014

Article by Mozo

News.com.au has conducted a Cost of Living survey of 53,000 readers and found 53% are “frustrated” and 16% are “angry” with the rising cost of living in Australia.

News.com.au Cost of Living survey

Government policy was blamed as the main factor for cost of living stress, an indication of weakened consumer sentiment post Federal Budget.

Participants who listed themselves in the wealthier bracket blamed Tony Abbott’s coalition, however a large proportion of people also said that none of the political parties knew what to do.

The results echo a survey by the National Australia Bank (NAB) that highlighted one in five Australian adults rarely or never have any money left at the end of a pay cycle with Good Shepherd Microfinance CEO Adam Mooney explaining there is a disconnect between how well people think they manage their money and the reality of being caught short at the end of a pay cycle.

“When people have no buffer to cope with unexpected expenses like a car or washing machine breaking down, or a change in personal circumstances such as an illness or divorce, problems can quickly build up and become a significant financial and emotional burden,” Mooney said.

Recent research from IBISWorld also showed while the average household income now sits at a high $145,400 across Australia’s 9.3 million households, savings including superannuation, are only around 7% of income.

IBISWorld chairman Phil Ruthven said savings were “rarely at the desirable level of 10% to 12% of gross incomes that can ensure a dignified and comfortable retirement of around one-third of average household incomes.”

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