Almost a third of Australians ‘financially unfit’
(6 April 2011 – Australia) Bankwest has posted its third annual Financial Fitness Index, reporting an increase of three percent of Australians being more financially unfit than a year ago.
According to the Index, 31 percent of Australians are classed as ‘financially unfit’, up from 28 percent last year, this means they have little or no savings, high housing costs relative to their income, inadequate insurance and few assets.
Generation X is the generation most at risk financially, with 38 percent financially unfit. Baby Boomers are in the best position with 29 percent financially fit.
Interestingly the number of Australians who are financially fit had also fallen, from 22 percent in 2010 compared to 17 percent this year. This happened despite a change in spending patterns, with almost half of those surveyed becoming more conservative with their spending.
In particular women struggled more financially than men, and by state, Queensland and Western Australia had the highest proportion of financially unfit individuals with 35 percent being financially unfit. The state with the highest proportion of financially fit residents was South Australia with 21 percent.
The Index was determined through answers to 14 vital signs about financial health with 792 individuals throughout Australia anonymously surveyed.
Generation X is the generation most at risk financially, with 38 percent financially unfit. Baby Boomers are in the best position with 29 percent financially fit.
Interestingly the number of Australians who are financially fit had also fallen, from 22 percent in 2010 compared to 17 percent this year. This happened despite a change in spending patterns, with almost half of those surveyed becoming more conservative with their spending.
In particular women struggled more financially than men, and by state, Queensland and Western Australia had the highest proportion of financially unfit individuals with 35 percent being financially unfit. The state with the highest proportion of financially fit residents was South Australia with 21 percent.
The Index was determined through answers to 14 vital signs about financial health with 792 individuals throughout Australia anonymously surveyed.
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