While there has been discussion around how COVID-19 has led to more Australians getting on top of their finances, a recent survey from MyState bank has highlighted how much of the country’s population is experiencing ongoing money stress as a result of the pandemic.
The survey found that a third of Australians have been forced to dip into their savings to get by since March, with one in 10 estimating they have drained more than 50% of the sum.
Half of the over 1,000 respondents also indicated they would not be able to afford a $200 increase in monthly household expenses at the moment.
“What started out as a health crisis has been felt in the hip pockets of many Australians across the country,” said MyState Bank GM of customer experience Heather McGovern.
“While lockdown measures have helped some Australians into a better financial position; for others, it has left gaping holes in their household income.”
Of those surveyed, 18% reported COVID-19 has resulted in their household income decreasing by more than a quarter.
According to the research from MyState, paying for essentials such as groceries (39%) and covering household bills (39%) are the two primary reasons Australians have dipped into their savings over this period.
“The economic implications of COVID-19 have caused many households across the country to redirect their savings to the basic necessities, shelving their big financial goals and decisions, at least, for the time being,” said McGovern.
Nearly a quarter of those needing to access their savings to get by over recent months (23%) reported those funds were originally being put towards a deposit on a first home.
