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Some Australians have become less positive about their finances this year as they communicate feeling in the dark when it comes to finding the best deals around, according to a recent study by Canstar.
Around 30% of Australian adults – 5.9 million people – said their optimism has started to waver in the new year.
While 45% remain optimistic about what lies ahead for their financial situation, there are certain groups of people whose outlook is understandably on shaky grounds, explained Steve Mickenbecker, Canstar group executive of financial services.
"Australians who have lost jobs and have run up debt to get by are obviously nervous about the way forward in 2021," he said
Further, savers are significantly affected by the low-rate environment which has been perpetuated with the Reserve Bank of Australia’s February decision to keep the cash rate at a record low of 0.10%.
"Savers have consistently had a horror run in 2020 that has continued into this year and retirees would have to be wondering if they have any chance of funding their retirement years on what they have put away," he said.
For savers to still be able to thrive in the current market conditions, Mickenbecker believes they have to hunt out the best savings rates and consider mixing bank deposits up with other investments.
Despite this confluence of events, the current market conditions actually do present opportunities for some Australians to cash in on, particularly mortgage borrowers.
Mickenbecker explained, "Home loan borrowers who have come through 2020 with their jobs and incomes intact should now be cashing in on the lowest home loan interest rates ever, giving them an unmissable chance to get ahead of repayments and build their finances.”
To Mickenbecker, it seems that feeling more optimistic about finances comes from having a general knowledge of the top savings rate or negotiating with, or even switching, lenders.
"The Reserve Bank won’t be moving the country’s official interest rate for a while, but the banks are moving savings and home loan rates further down anyway, meaning that everyone has to take their future into their own hands and find the best deals around," he said.
