Younger Australians are feeling immense economic pressure with 70% of 18-to-34- year-olds being negatively impacted by the rising cost of living, a figure that has jumped by 10 percentage points since August 2022, according to an ongoing study from leading strategic insights consultancy Nature.
The latest research revealed that 57% of younger Australians are taking drastic measures to mitigate the impact by using less utilities, which is 10 percentage points above the total Australian population. Another 57% are also cutting subscriptions and memberships, up 13 points since August last year, and 61% are implementing automatic savings banking software to help them save money, up 15 points since August.
People aged 18 to 34 are also making large-scale changes to get by, with 61% of them undertaking additional work hours or finding part-time work compared to 40% of the total population. They are also cancelling overseas travel plans, with 56% looking to travel locally or not at all instead, up from 43% in August.
Nature partner and Melbourne managing director, Justin Connally, said: “Our study in August last year revealed the economic impact on Australians and these latest figures show that things have gone from bad to worse in the past few months. There’s been a drop in living standards, meaning widespread fear among those hit hardest: young people, renters and mortgage holders.
“With price and value for money at the forefront for nearly all Aussies, it is important that businesses evolve their positioning to align with this current consumer sentiment.”
The new Nature study found that 90 per cent of Australians believe cost of living is the #1 issue in the country and 75 per cent have been negatively impacted by the rising cost of living. One in two Australians are making more significant decisions, like switching/adjusting their insurance policies and energy providers to help save money, up from six months ago.
Nature Consultant, Jacqui Dreher, said: “With little respite from cost of living in the near future, brands that understand spending patterns, demonstrate empathy and meet consumer expectations over the next year, will go a long way.
“Inflation has hit a generational high. The impact on housing and food has been particularly poignant as many Australians grow concerned that the cost of everything is rising while salaries and wages remain the same.
“Concern among home owners jumped 11 points in the past six months to 56% overall, and home loan search queries are reaching new heights, as more Australians than ever before look to refinance their home loans,” she said. The research was conducted in late February 2023 and covered 1,000 people across Australia who are mainly or jointly responsible for household finances. The sample size was representative of the national population.
