FPA annual financial health check results published

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The Financial Planning Association’s (FPA) annual Money & Life Tracker: Freedom Edition offers a glimpse into the financial health of Australias since the pandemic started.

Key findings include:

  • Fifty-two per cent of Australians have a savings goal to hit in the coming 12 months, followed by 44 per cent wanting to go on holiday

  • Since the first survey in 2020, 26 per cent of survey respondents have made some changes to their financial situation and 11 per cent feel in a much stronger position

  • Thirty-five per cent said their income and ability to work was affected by lockdowns

  • Thirty-four per cent said they didn’t have enough savings to get through lockdowns, or did not know

  • The biggest changes include being more frugal regarding lifestyle choices (an increase of 15 per cent on last year), increasing savings (43 per cent in 2021), paying down debts Up nearly 20 per cent on 2020 numbers), and creating a budget (up 15 per cent on 2020)

  • Those who hadn’t made any major changes said that in hindsight some basic financial planning could have helped them be in a better position

  • More men indicated they would have had a financial plan in place (11 per cent of men and 9 per cent of women), whereas women said not splashing as much money on takeaways and non-essential items (16 per cent of men and 21 per cent of women)

  • Women prioritised making a budget (43 per cent of women vs 34 per cent of men)