Queensland households are struggling to rebuild their financial wellbeing following the spate ofnatural disasters over the past 12 months. Faced with lower personal assets and reduced savings, only 12% of Queenslanders expect to increase personal spending in the run up to Christmas, according to the latest ING DIRECT Financial Wellbeing Index.

Key findings for Q3 of 2011 (surveyed in September and early October)Queensland’s Financial Wellbeing Index stands at 97.3 – the first time a state reading has fallen below 100 since tracking began in early 2010.

32% of Queensland households receive some income or benefits from Centrelink.

Median household savings are at $2,950 – compared to $7,812 nationally

24% of Queenslanders have no savings at all

Only 12% of Queensland households say they will increase spending in the lead up to Christmas

Almost one in three Queenslanders (30%) say they won’t be increasing spending in the foreseeable future

Only one in ten expect to increase spending ahead of Christmas

The quarterly Household Financial Wellbeing Index rates household comfort levels across six key aspects of personal financial wellbeing including credit card and mortgage debt, savings, investments, household income and ability to pay bills. Respondents rated their personal comfort level across each area on a scale from 1 (‘very uncomfortable’) to 7(‘very comfortable’).

The deterioration in financial wellbeing sees just over one in ten (12%) of the state’s households likely to increase their spending in the lead up to the festive season. One in three (30%) don’t expect to loosen the purse strings in the foreseeable future.

Mr Don Koch, CEO of ING DIRECT, says, “Despite the Index for Queensland dropping there are some bright spots in the state’s financial wellbeing.”

“Median figures for household credit card debt and home loan balances show Queenslanders are about on par with national figures.

In addition, household preferences for saving and paying off debt rather than spending, reflects a sensible approach that will hopefully see Queenslanders rebuild their financial confidence over time.”

Research methodology
The ING DIRECT Financial Wellbeing Index was complied by Galaxy Research between Wednesday 28 September and Monday 3 October 2011 by surveying 1,009 household financial decision-makers aged 18–69 years. The data was weighted by region and household size to reflect the Australian household population based on the 2006 census. The level of savings reported in the study is also calibrated to APRA national bank total deposits (households) to ensure accuracy of household savings levels.