The findings are based on a survey of more than 2,000 respondents, conducted between mid and late June 2022, and extrapolated using wider Australian Bureau of Statistics (ABS) data.

Since the beginning of the pandemic in 2020, the number of those suffering severe or moderate financial stress has increased dramatically.

The data shows 953,000 workers are severely financially distressed, while 2.01 million are moderately financially distressed. 

Of those, the 18-29 age group is the most affected by financial stress (31%) compared to the 55+ age group who are least impacted (12%). 

According to AMP, financial stress costs the economy $66.8 billion a year due to lost productivity, lack of motivation, and employee distraction. 

This figure is double the rate found from the same survey conducted in 2020

Stephen Owen, AMP’s General Manager of Member Engagement, said concerns about meeting expenses and the impact of higher interest rates are major factors contributing to financial stress. 

“It’s no surprise we’re more financially stressed than ever,” Mr Owen said.

“Following an emotionally unsettling two to three years with Covid, we’re now facing rising interest rates, general cost of living pressures, a property downturn and jittery investment markets.

“What’s particularly concerning is the impact on women, single-parents and younger Australians, where stress levels have increased the most.”

The report found 27% of women and 25% of single-parents aged 30-44 are severely or moderately financially stressed, up from 19% and 13% respectively in 2020.

There is a silver lining 

The research indicates the Covid crisis caused many workers to reassess their finances and set goals for the future. 

Workers considering setting financial goals has doubled from 17% to 34%.

Additionally, one in two employees indicate they are likely to seek professional help in the next 12 months.

“There are reasons to be optimistic – unemployment is at historic lows, our economy is in relatively robust shape, despite inflationary pressures, and new flexible ways of working are seemingly here to stay, easing the logistical pressure cooker for many families and reducing household expenditure,” Mr Owen said.

“Importantly, the rising stress has also been a catalyst for many Australians to engage with their finances – more of us are recognising that simple steps such as setting financial goals, establishing a budget and accessing credible online educational resources can have a positive impact on financial peace of mind.

“These actions are the foundations for financial wellbeing, irrespective of income and age.”


Advertisement

Need somewhere to store cash and earn interest? The table below features savings accounts with some of the highest interest rates on the market.

Provider

4000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
  • Bonus rate for the first 4 months from account opening
  • No account keeping fees
  • No minimum balance

High Interest Savings Account (< $250k)

  • Bonus rate for the first 4 months from account opening
  • No account keeping fees
  • No minimum balance
010000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
  • Deposit at least $1,000 + each month from an external source
  • Make 5 or more eligible transactions
  • Grow your savings balance each month

Savings Maximiser (<$100k)

  • Deposit at least $1,000 + each month from an external source
  • Make 5 or more eligible transactions
  • Grow your savings balance each month
010000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
  • No account fees
  • Total ongoing variable rate of up to 5.20% pa by depositing $1,000 in the previous month
  • Easy access to your money

Saver Account (<$250k)

  • No account fees
  • Total ongoing variable rate of up to 5.20% pa by depositing $1,000 in the previous month
  • Easy access to your money
4000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
  • A high-interest online savings account with no monthly fees, easy withdrawals and award-winning digital banking
  • A great base interest rate of 4.75%

Savings Account (Amounts < $250k)

  • A high-interest online savings account with no monthly fees, easy withdrawals and award-winning digital banking
  • A great base interest rate of 4.75%
05001$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
  • Maximum Age - 24
  • $0 monthly account fee
  • Earn bonus interest

Goal Saver

  • Maximum Age - 24
  • $0 monthly account fee
  • Earn bonus interest
02000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
No monthly fees
  • Download the App to open your account
  • Get better visibility of your spending within App!
  • Deposit $200 per month to activate bonus interest
No monthly fees

Save Account

  • Download the App to open your account
  • Get better visibility of your spending within App!
  • Deposit $200 per month to activate bonus interest
0200$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
  • No fees or penalties for withdrawing money
  • Savings guaranteed up to $250,000
  • Maximise your savings and reach your goals faster with Auto-Savings

Bonus Saver Account (Amounts < $250k)

  • No fees or penalties for withdrawing money
  • Savings guaranteed up to $250,000
  • Maximise your savings and reach your goals faster with Auto-Savings
010000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
For customers aged 14-35 years
For customers aged 14-35 years

Future Saver Account ( < $50k)

    010000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

    Boost Saver

      Important Information and Comparison Rate Warning

      All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here. Rates correct as of December 10, 2023. View disclaimer.

      Image by Nataliya Vaitkevich via Pexels





      Ready, Set, Buy!


      Learn everything you need to know about buying property – from choosing the right property and home loan, to the purchasing process, tips to save money and more!

      With bonus Q&A sheet and Crossword!

      By subscribing you agree to our privacy policy