Australians believe they are only moderately better off than grandparents, new survey finds

IT used to be the case that a six-figure salary meant you were rich. Today, it’s hardly enough to survive on. Here’s why Australians believe the cost of living is getting worse and what you can do to beat the crunch.

AUSTRALIANS today believe they are only moderately better off than their grandparents’ generation, a survey has found.

They say an average household income of $102,000 per year is now needed for a ‘reasonable’ standard of living.

The National Australia Bank research also reveals that cost of living pressures continue to be the biggest cause of consumer anxiety.

Asked to judge their standard of living today against other generations, those questioned felt it was only ‘moderately’ better than their grandparents’, and not much better than their parents’ generation.

“When people think about their standard of living they are thinking what is reasonable based on the hours they work and the job they have, and the sort of lifestyle they expect in return,” NAB head of economics Dean Pearson said.

“Those expectations have increased over time. Things that were once a luxury, such as a holiday, are now not as uncommon for many Australians.

“But also, essentials such as utility bills are much more significant issues than they were for previous generations. Expenses such as health insurance, petrol, gas and electricity are taking up more of our disposable income.”

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Australians today believe they are only moderately better off than their grandparents’ generation, according to National Australia Bank research. Picture: file photo

The survey found that over the next year, people planned to boost spending on holidays, home renovations, and school fees.

They intended to spend less on major household items, cars, investments and residential property.

On average, consumers believed a gross annual $102,000 household income was required for a ‘reasonable’ standard of living.

“This is $16,000 higher than full-time average total earnings of $86,000 per year,” Mr Pearson noted.

“That may help explain why cost of living pressures still weigh most heavily on consumers, and why they don’t think they’ve made strides in improving their standard of living against other generations.”

Those on the lowest incomes, renters, women aged 30-49, and people with children had the highest anxiety levels.

West Australians and Victorians were the most anxious.

NAB tracks the behaviour and mindset of 2000 consumers every three months.

One in three had experienced some form of financial stress or hardship in the quarter.

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@KarenCollierHS