Australians under the age of 25 are experiencing a slower recovery from the financial impacts of COVID-19 compared to other age groups, according to recent research by ANZ. The ANZ Roy Morgan Financial Wellbeing Indicator highlighted that this demographic was significantly affected by the pandemic, with nearly one-quarter (23.4%) employed in sectors like hospitality and retail, which faced severe lockdown-related disruptions.
The report indicates that individuals aged 14-24 feel less financially stable and confident in managing their finances than older Australians. This gap widened between March and December 2021. The pandemic's effects on younger Australians also extend to their work attitudes, social interactions, and mental health. There was a notable increase of 12.4 percentage points in young Australians reporting mental health conditions—from 45.5% in March 2021 to 57.9% in December.
Additional findings from the ANZ Roy Morgan Financial Indicator include:
- A 2.8% rise in the overall financial wellbeing of Australians, reaching a score of 59.1 out of 100 between March and December 2021.
- Improvements were noted across all states and territories during this period, with the ACT (up 4.5%) and Tasmania (up 4.0%) showing significant growth; South Australia saw minimal improvement (up 0.2%).
- All age groups experienced financial wellbeing recovery except those aged 14-24.
- The same age group saw the largest decline during the first year of the pandemic, dropping by 7.3% from March 2020 to March 2021.
- Between March and December 2021 for those aged 14-24, 'Feeling Comfortable' increased by 1.5%, but there were decreases in 'Resilience for the Future' (down by 1.5%) and 'Meeting Everyday Commitments' (down by 0.5%), suggesting some may have used up savings.
Natalie Paine, ANZ Lead Social Impact Research & Reporting stated: “The ANZ Roy Morgan Financial Wellbeing Indicator provides us with valuable insights into the financial wellbeing of Australians, as well as their financial confidence, attitudes and behaviours."
“There are many reasons younger Australians are taking longer to recover financially from the pandemic," Ms Paine added. "Many have lost confidence in managing their money and are more likely to say they would have difficulty coping with a demanding job compared to the general population.”
The indicator is based on data from approximately 65,000 Australians annually through the Roy Morgan Single Source survey that evaluates financial behaviors along with psychological, social, and economic factors contributing to financial wellbeing.
For further details on this report: https://www.anz.com.au/about-us/esg-priorities/financial-wellbeing