How Australians are preparing for financial uncertainty
Uncertainty looms: Australians prepare for turbulent times ahead
Are you worried about financial uncertainty? Expecting an economic slowdown? You’re not alone.
According to NobleOak’s latest research conducted by PureProfile, many Australians are in the same boat. In fact, 61% of survey respondents believe that a recession will leave them either unemployed or with reduced income in 2023. This is a significant jump compared to NobleOak’s research survey conducted last year (with the same number of respondents). In fact, there has been a 28% increase in respondents who feel they may be made redundant.
And that’s not all. The survey data also suggests that Australians are expecting their budgets to be challenged in the coming months.
Respondents rank budget tightening, rent increases, home loan stress and employment changes as the top four adverse events they’ll likely experience in 2023. These results support similar findings collected by EY Oceania which claims “large tranches of Australians are expecting to spend less in coming months” as they “buffer the instability of the economy.”
How are Australians responding to financial uncertainty?
Despite a potential recession, many consumers are choosing not to cancel their personal insurances. Instead, they’re preparing for turbulence by reducing expenses in more material categories. According to the 2023 NobleOak survey, respondents rank holidays and entertainment as the costs they would cut back on if they lost some or all of their income for an extended period of time.
Notably, life, health and home insurances are amongst the last items respondents would reduce. In fact, people said that they would even cut back on education costs ahead of life insurance and income protection cover. These findings suggest Australians are holding onto their personal insurances as protection in the face of financial hardship. With redundancy and unemployment considered to be more likely, consumers seem to value the reliability of insurance during economic uncertainty.
Though there’s no telling how long a potential recession might last, identifying a trustworthy insurer to help protect your assets may be one of the most important decisions you can make to weather the storm.
Disclaimer: This is general information only and does not take into consideration your individual circumstances, objectives, financial situation or needs.