Broken hearts from empty pockets
Thursday, 4 September 2008 12:45pm
Forget environmental or social concerns. A new study found that the uncertain economic climate is the single largest negative influence on the average Australian's sense of wellbeing.
According to the latest Australian Unity Wellbeing Index - which measures consumer satisfaction with the government, the environment, and social conditions - it is the health of the economy that is affecting people the most.
"High interest rates, falling superannuation balances, investment market uncertainty and the spiralling cost of living, including high petrol prices - these are major concerns for all Australians," said David Bryant, head of Australian Unity Investments.
Since October last year, the index found that satisfaction with the economic situation in Australia has fallen 8.5 percent - the biggest decrease since the survey started seven years ago.
"Since 2001, the Wellbeing Index has shown satisfaction with the Australian economy steadily increasing, moving within a range from 53 per cent to 70 per cent, which was recorded in October last year and was the highest level it has reached," said Bryant.
He continued, "But in the latest survey, the level of satisfaction has dropped back below 62 per cent, to a level last experienced over six years ago."
He said that's partly because people feel they aren't in control of their financial situation.
"Previous surveys have shown us that having a little extra cash put aside for a rainy day has a significant positive impact on Australians' wellbeing, because people feel better prepared to deal with life's challenges such as illness or unemployment, or achieve goals such as higher education."
To counter their worries, Bryant suggested consumers get expert help.
"People who don't have a financial planner could be tempted to make bad decisions, such as selling out of markets completely and crystallising their losses, and may miss warning signs as well as opportunities."
"Getting the right advice, assistance and expertise, coupled with a long-term approach, are the first steps in building a secure future and reducing worry," he added.
Michelle Baltazar
