Leisure spending is top financial priority for festive Aussies

Australians are prioritising spending on holidays and leisure over other longer term financial goals according to a nationwide poll from TAL. 

The research has found that the festive spirit of Australians was not dampened by any predictions of economic uncertainty in 2013, with almost three quarters of Australians (74%) rating spending on leisure as their current financial priority.  

Spending on holidays and saving for retirement were rated as the next most important financial priorities with 71% of people rating these goals as either ‘very’ or ‘quite’ important.  

The poll was conducted among 1200 Australians and asked people to rate a number of financial goals as either ‘very important’, ‘quite important’ or ‘not at all important’. 

TAL Managing Director Jim Minto said: “Most pleasingly, just over half (55%) of all people surveyed said that ensuring their life insurance provided adequate financial protection was an important financial priority at the moment. 

“These findings from our life insurance barometer project provide some interesting insights into the mood of the nation. Despite a pessimistic outlook for the economy in 2013, Australians will still celebrate the festive season with the customary focus on leisure spending. 

“But the fact that the majority of people have as a priority protecting their own and their family’s wellbeing in the event they could no longer work is a gratifying finding. Although underinsurance is still a big problem, many consumers are actively reassessing their needs to ensure they avoid the devastation an unexpected loss of income can cause through illness, accident or death.” 

Other key findings: 

• Gen X, or those aged between 35 and 49 years, were most likely to rate reviewing their life insurance as a financial priority (63% stated that this is very or quite important)
• The burden of paying for the care of dependents fell on 25 to 34 year olds with this age group most likely to consider this quite or very important (55%)
• Increasing leisure spend was most important amongst those aged under 25 years (87% rated this as very or quite important)

 Mr Minto added: “The New Year is often a time when people reign in their spending and take stock of their financial situation. With underinsurance at such high levels* we would encourage people to consider whether they have enough life insurance in case they couldn’t work again.”