Aussies Still Saving Amidst the Pandemic – Hope 103.2

Aussies Still Saving Amidst the Pandemic

New research shows despite the challenges presented this year, two in five Australians have managed to save more money than usual in 2020.

By Mark McCrindleMonday 16 Nov 2020

While the experience of COVID-19 has been unique to the individual, many Australians have struggled with losing their job, working reduced hours or working from home, while some have found 2020 a year of savings.

COVID-19 has posed a significant financial challenge for many Australians. According to our third phase of research exploring the impacts of COVID-19, despite the challenges presented this year, two in five Australians (41 per cent) have managed to save more money than usual in 2020. Almost one in three Australians (32 per cent) have saved the same amount and 27 per cent have spent more money than usual in 2020.

2020 savings and spending survey results

Closed borders have not curbed Australians’ desire for travel

It is good news for the travel and tourism industry that Australians who have saved more than usual during 2020 are planning to spend their extra savings on travel. The most popular immediate destination will be interstate (21 per cent), followed by international travel when the borders reopen (19 per cent) and to regional Australia (18 per cent).

One in five Australians are taking the practical approach with their savings by either paying off debt (20 per cent) or contributing to their retirement savings (17 per cent). Property is still part of the Australian dream with 15 per cent planning to buy a property to live in, while 10 per cent are looking to buy an investment property. More than one in five Australians (22 per cent), however, are not planning to spend their savings but are looking to keep them.

2020 savings plan survey results

Changing spending behaviour in the wake of COVID-19

While we are yet to see what the long-term financial implications of COVID-19 will be, we are already observing a change in Australians’ attitudes and behaviours towards finances. Seven in ten Australians (70 per cent) agree that 2020 has been a tough year financially, so will be looking for ways they can save on their Christmas gifts.

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Not only are Australians looking to save, but the way they purchase is changing. Three in five Australians will do the majority of their Christmas shopping online this year to avoid the crowds (58 per cent) and a similar proportion (60 per cent) expect to do more of their shopping online even after COVID-19 restrictions ease and things go back to normal.

Younger Australians embracing online shopping

Younger Australians are more likely than older Australians to say they will do the majority of their Christmas shopping online this year to avoid the crowds (76 per cent Gen Z; 78 per cent Gen Y; 61 per cent Gen X; 34 per cent Baby Boomers; 24 per cent Builders). The integration of digital purchases into Australians’ lives is also expected to continue with almost four in five Gen Z (78 per cent) and Gen Y (79 per cent) expecting to do more of their shopping online even after COVID-19 restrictions ease and things go back to normal (64 per cent Gen X; 37 per cent Baby Boomers; 30 per cent Builders).

australians post covid - exploring how australians have been impacted by and responded to covid-19. download the free report here


Article supplied with thanks to McCrindle.

About the Author: McCrindle are a team of researchers and communications specialists who discover insights, and tell the story of Australians – what we do, and who we are.

Feature image: Photo by Fabian Blank on Unsplash