New research indicates signs of recovery in the financial wellbeing of Australians since the onset of the COVID-19 pandemic. The ANZ Roy Morgan Financial Wellbeing Indicator reported that in March 2021, financial wellbeing reached its highest score since the pandemic began, with a score of 59.0 out of 100.
The update is based on data collected over a year, from April 2020 to March 2021, and highlights changes for Australians during this period. It also emphasizes ongoing effects, particularly on vulnerable groups within the community.
Key findings from the ANZ Roy Morgan Financial Wellbeing Indicator reveal that financial wellbeing declined from 60.7 in March 2020 to 57.5 in March 2021. However, March 2021 saw an improvement with a score of 59.0 out of 100, suggesting a recovery at an aggregate level.
The impact on financial wellbeing has led to growth in both the 'Struggling' and 'Getting By' segments while the 'No Worries' segment has decreased significantly. The most notable decline was observed in the 'Feeling Comfortable' segment, which dropped by 8.2% year-on-year from a score of 56.0 to 51.4 out of 100.
All states and territories recorded lower scores in overall financial wellbeing, with Victoria experiencing the largest decline at 7.4%, whereas Western Australia saw the smallest decrease at just 1.5%.
The ANZ Roy Morgan Financial Wellbeing Indicator is derived from the Roy Morgan Single Source survey involving approximately 50,000 Australians annually and evaluates financial behaviors along with psychological, social, and economic factors contributing to financial wellbeing.