The lucky country is feeling the pinch. One in eight adults in Australia (12.6 per cent) experienced severe or high financial stress during the past year, up from 11.1 per cent. This means that they are less able to bounce back when things go wrong, such as a higher than expected utility bill or a broken washing machine.
More than half (56.3 per cent) felt some level of financial stress compared with 53.2 per cent a year earlier. This group had more resources to draw on than those in severe or high financial stress. However, they could still be exposed by major financial shocks like losing a job, having a baby or a relationship breakdown.
Less than one in three (31.2 per cent) were financially secure, down significantly from 35.7 per cent in 2015.
Financial Resilience in Australia is an annual report produced by the Centre for Social Impact, in partnership with NAB.
Financial resilience is being able to bounce back from a financial shock. There are a number of things that help people's financial resilience including income, savings, a willingness to seek financial advice, connections with family and friends, support from community and government organisations and access to appropriate banking products like credit and insurance
Now in its second year, the report reveals just how financially vulnerable many Australians are when they experience a bump in the road and need a helping hand.