MLC survey shows a nervous consumer

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By Leith van Onselen

MLC has released its latest Wealth Sentiment Survey, which paints a picture of a very cautious (nervous) consumer.

First, many Australians are struggling to save any of their income:

Being able to save has been a challenge for a number of Australians – almost 1 in 5 of us have been unable to save any of our income in recent years, and for more than 1 in 4 of us only 1-5%.

Still, households are looking to pay down debt and save more rather than invest:

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Contrary to MYEFO’s projected wages explosion, most Aussies do not believe their incomes will rise materially over coming years:

So, not surprisingly, our savings expectations for the future are also very conservative – with more than 1 in 5 Australians believing their savings will fall.

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The Australian dream of home ownership is fading:

The “great Australian dream” of home ownership is still a reality for many, but for some it’s just a dream – fewer than 1 in 10 Australians said they didn’t want to own their own home, but 1 in 4 said home ownership was something they aspired to but did not think it would happen.

Finally, half of us still don’t think we’ll have enough to retire on:

Over half of us still don’t think we’ll have enough to retire, with women less optimistic than men. But a growing number of us now think they’ll have enough…

The number of Australians who think they’ll have enough to retire on rose to 37% in Q2, from 30% in Q1. While it is encouraging that fewer Australians also think they won’t have enough, a large number (50% or 1 in2) still think they won’t (58% in Q1).

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Full report here.

About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.