A total of 10.5 million Australians, or one in two adults, do not have enough savings in reserve to comfortably deal with a potential emergency situation, and are also fearing their inability to finance the repercussions of bad credit scores, debt repayments and job uncertainty, according to data from finder.com.au.
Unexpected costs such as medical emergencies were the biggest cause of money concern for Australians, with 58 per cent of survey respondents stating they would be unable to cover the costs.
Finder.com.au money expert, Bessie Hassan, said the data revealed an uncomfortable truth of the severe limits of sufficient savings Aussie’s have in reserve.
“Many Australians are just one surprise situation away from financial stress; a short term personal trauma could very quickly become a financial emergency,” she said.
“Being worried about an unexpected cost indicates Australians don’t have enough funds up their sleeve to manage a financial curveball.” Statistics showed baby boomers feared money emergencies the most, with 70 per cent uncertain. Comparatively, 57 per cent of Gen X held concern, and 49 per cent of Gen Y. The biggest fears after unexpected emergencies were job loss (41 per cent), negative credit score or report (40 per cent), credit card repayments (34 per cent), and passing on debt to family (29 per cent). Also on the list of concern were home loan repayments and risky financial habits including gambling and risky investment.
