Nearly half of working Aussies over 60 are living hand to mouth

Research reveals 4.2 million working Aussies were living hand to mouth well before the coronavirus crisis.

Over 60s living hand to mouth

Concerning new research reveals 4.2 million working Australians were living hand to mouth well before the coronavirus crisis and working older Australians were struggling the most.

The findings, which come from an independent survey of a nationally representative panel of 1006 Australian adults commissioned by Money.com.au, show that 43 per cent of working Aussies over-60 are either in debt or have under $100 left over after paying their monthly essentials. 

The survey reveals that nearly a third (32 per cent) of employed Australians are either in credit or have under $100 left in their pocket, after paying all their essentials each month.

Essentials refer to mortgage/rent, bills, groceries, kids’ expenses, household maintenance and supplies, and loan repayments.

One in five (21 per cent) are either in credit or only have up to $50 left each month, after paying for essentials.

Worse still, 70 per cent of Australians believed their discretionary income would have been lower or the same this year, even before the crisis (33 per cent said it would have been lower).

The government’s cash handouts for lower-income Aussies were designed to inject money back into the economy. However, licensed financial adviser and Money.com.au spokesperson Helen Baker predicts this won’t be the case.

“The survey results confirm that Australians were already struggling to make ends meet and, therefore, have no safety net, with low wage growth and increases in household expenses the main factors,” Ms Baker explained.

“Businesses and workers have been so significantly impacted from coronavirus – particularly the travel, hospitality and entertainment industries – that there are forecasts there will be two million unemployed.

“No-one knows how long this pandemic will last and how much further the economy will decline, so those receiving government assistance will need their cash payments immediately to keep living, as fears grow around when, and if, their next paycheck will come through.

“The findings also show that our older population are struggling the most when it comes to having leftover spending money, with 43 per cent of over-60s admitting they’re either in credit or have under $100 left over after paying for essentials every month.

“It’s concerning, given that they’re at a stage in their lives where adequate funds should be set aside for retirement.

“They’re also facing more pressures to save as cost of living and healthcare rises, and people live longer. Money needs to stretch for longer, but instead it’s depleting more rapidly than in the past.

“Older Australians need to assess ways they can cut back on their spending to ensure they can retire comfortably, by considering downsizing and even taking on jobs such as Ubering or mowing lawns.”

How are your finances holding up during the pandemic? Are you struggling to get by? Should the government be providing more assistance?

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    COMMENTS

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    abundanced
    9th Apr 2020
    10:51am
    This shouldn't surprise anybody on any level, including pollies. We're taxed until we're dry and the cost of goods and services increase on what seems like a monthly basis without any pay increases. And allowable extra income (if you're lucky to get any) on top of a pension is pittance. It seems like any icing on the cake is frowned upon.
    hyperbole
    9th Apr 2020
    10:58am
    not all are living hand to mouth . many are coping quite well
    Mariner
    9th Apr 2020
    11:24am
    My experience too around here. Petrol is under $1, you cannot drive anywhere. All entertainment is shut, restaurants are closed and so are pubs (my social outing). People tell me they have more money now then after Christmas, some mentioning the pokies not working. In my case bottle of wine at home $6 at lunch time, normally $22 in my local (same type of wine). Food prices however have risen faster than ever in the supermarket and green grocers.We are saving $25 a day on average for being stuck at home; electricity bill might be higher as we watch more on screens.
    abundanced
    9th Apr 2020
    11:26am
    Good to hear
    Paige363
    9th Apr 2020
    12:51pm
    Ubering or mowing lawns? Many elderly citizens are physically unable to. I can barely get through my own housework. Any other suggestions would be welcome though.
    Virginia
    9th Apr 2020
    2:46pm
    That’s a load of absolute rubbish
    Of course people cannot spend spend spend and then complain when an emergency happens and they haven’t got an emergency fund
    My father lived on the pension and saved . Oh yes he went dancing 3 times a week ran a car and took his family to a restaurant for birthdays
    So don’t moan save do not live like every day is your last and you don’t have to spend every cent every week
    Make sensible responsible choices
    Hasbeen
    9th Apr 2020
    3:14pm
    How many nights at pub/club for dinner & a bit on the pokies, how many weeks holidays & how much repayments on cars furniture etc. does that essentials does that include.

    I find living on the pension is no problem, & very pleasant
    floss
    9th Apr 2020
    9:37pm
    Not so loud people Joe Hockey will soon be back in town.