A recent Ipsos Financial Circumstances Report has indicated a significant decline in satisfaction with living standards among Australians, contributing to rising financial pessimism.
As cost-of-living pressures persist, only 41% of Australians reported being satisfied with their standard of living, down from 66% in March 2021. The report is based on a survey of 1,000 Australians conducted from August 8 to August 13, highlighting the evolving financial landscape and its implications for different demographic groups.
The study showed that dissatisfaction with living standards is especially pronounced among women and younger generations. While 44% of men expressed satisfaction, only 38% of women felt the same, resulting in a notable gap of 14%. This disparity, although significant, is an improvement from the 18-point gap recorded in March 2022.
Age also played a role in satisfaction levels. Baby Boomers (aged 60 and older) showed the highest levels of contentment, with 49% satisfied and a net satisfaction score of 24%. In contrast, Generation X (aged 45-59) demonstrated the lowest satisfaction, with 35% satisfied and a net score of -2%. Generations Y (Millennials, aged 28-44) and Z (aged 18-27) reported moderate satisfaction, with scores of 8% and 9%, respectively.
The report also indicated a notable downward trend in financial outlooks, as 40% of Australians reported they expect their personal financial situations to worsen over the next year. This marks a net negative outlook of -18%, which contrasts sharply with a positive outlook of +12% in March 2021.
Baby Boomers, despite their current satisfaction, are among the most pessimistic about their future, with 44% expecting a decline in satisfaction levels.
“This trend of declining satisfaction and increasing pessimism has intensified since our last report in March 2022, and highlights the impact the cost-of-living crisis is having on Australians,” Ipsos public affairs director Ben Brown (pictured) stated.
The study also indicated an increase in the number of Australians struggling to meet financial obligations. Approximately 30% of respondents reported being late on payments, up from 24% in March 2022. Also, 45% of participants reported they were late on personal loans, compared to 35% previously.
“While the proportion of Australians who are satisfied with their standard of living still outweighs those who are not, the fact that the proportion of Australians who feel things are going to get worse over the next 12 months outnumber those who feel it will get better, indicates most Australians believe this will still be a hot topic, when the next Federal Election is held,” he said.
“If that is the case, cost-of-living will be one of the key issues Australians consider in the next Federal Election. Whichever party can effectively demonstrate their ability to manage this, may go a long way towards forming government.”
How is the cost of living in your area? We invite you to share your thoughts in the comments below.
