Douugh’s Wealth Health Report has revealed nine in 10 young Australians worry about their financial situation.
The top three cited reasons for this pressure are the rising cost of living, 67%; lack of savings, 37%; and unexpected expenses, 37%.
Gen Z respondents noted they were particularly concerned with lack of income or job loss (31%) and not having a solid plan for the future (21%).
Of the 2,013 respondents 82% utilise a savings account as a means of building wealth.
Despite this, only 65% would dip into their savings if they were hit with an unexpected $500 bill. The remaining two fifths would borrow the money from family or friends, or utilise lines of credit such as credit cards or overdraft limits.
While homeownership remains the biggest financial goal, more than a quarter aren’t confident they’ll achieve it in their lifetime.
Seventy-eight per cent of men are at least ‘somewhat confident’ they’ll purchase a home compared to 66% of women.
Founder and CEO of Douugh Andy Taylor said it’s clear Aussies are grappling between their short-term cost of living issues and their long-term financial future.
“The ‘Australian dream’ of home ownership is almost at the point it feels unachievable for a lot of Aussies,” Mr Taylor said.
“But it’s important we don’t lose sight of creating sound money habits in the meantime to build the necessary foundations to bring our long-term financial goals back into reach.
“Utilising a range of wealth building strategies, investing in small but frequent intervals, and seeking professional advice if possible is going to support Aussies through this rough period without having to choose between now or then.”
This comes as the ANZ CoreLogic Housing Affordability Report found it takes Sydney homebuyers around 12 years to accumulate a 20% deposit.
The Douugh report also revealed more than half of Aussies (54%) aged 18-32 are concerned they won’t be able to retire comfortably.
While 86% of respondents agree building long-term wealth is important, only 4% prioritise retirement as a key financial goal.
Meanwhile, 54% are worried they won’t be able to retire comfortably.
New data released by the Association of Superannuation Funds of Australia (ASFA) found the annual budget for a comfortable retirement now sits at a record $70,482 for a couple aged 65+ and $50,004 for a single.
The lump sum required to retire comfortably at 65 years is $690,000 combined for couples, and $595,000 for singles.
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