If interest rates fell to 0%, Australians would be more likely than Americans, the British and Singaporeans to take on more debt and be satisfied with a lower rate of return. This is based on research released by Aviva, one of the world's largest insurance groups.
If interest rates fell to 0%, Australians would be more likely than Americans, the British and Singaporeans to take on more debt and be satisfied with a lower rate of return. This is based on research released by Aviva, one of the world's largest insurance groups.
The findings are part of Aviva's 0% World report which surveyed over 3,000 people in February 2009 across countries including the USA, United Kingdom, Singapore and Australia.
High level findings are attached, with the following key insights:
I would be better off (over the next 12 months)
The research also revealed that 32% of Australian respondents said that their financial situation would be better over the next 12 months if interest rates were to fall to 0%, compared to a world wide average of 21%.
If interest rates fall to 0% how likely would you be to take on new debt?
The report found that 29% of Australians are likely to take on new debt which compares to an average of only 16% for the rest of the world. This is a significant level, particularly taking into account the next country with the highest propensity to take on more debt was the USA, almost half as likely at only 15%, followed by the UK at 14%.
...I believe the world (stock market) will return to what it was...
The research indicates that 65% of respondents in Australia agree that the stock market will retrace its recent falls - coming second behind Singapore at a staggering 70%, followed by the USA at 58% and the UK at 55%.
...still better to...invest in the stock market...
Despite negative media headlines focusing on the volatile share markets, the research revealed that a surprisingly large proportion of Australians have a positive attitude towards products which invest in the stock market, with 38% agreeing that such products will give better returns than simple savings accounts. The most positive sentiment towards the stock market came from Singaporeans who came in the highest at 52%, followed by the US at 39% and the UK, lagging behind at 25%.
Choose savings or investment products with a guaranteed rate of return
Overwhelmingly, however, the highest propensity of respondees was for a guaranteed rate of return with Australia scoring 46%, third behind the US at 48% and Singapore at 54%.
Aviva's Tim Cobb, general manager - marketing and public relations, said: "Our research showed that despite all the media attention on daily market movements, Australians are staying positive and are focused on the long term outlook. Despite plenty of talk about Australia falling into recession, many Australians are still willing to take on new debt and invest.
"Australians understand that markets have their ups and downs, with many agreeing that it will all return to normal. Interestingly our research showed that 21% of Australian respondents were not at all worried about their financial situation today."
Over 500 Australians were surveyed in the 0% World research which was conducted in February 2009 across six countries including the USA, United Kingdom, Singapore and Australia, as well as Spain and Poland. The research was conducted online, surveying Australians across all states, territories and age groups.
An overview of key results for the USA, United Kingdom, Singapore and Australia, with Spain and Poland included in the ‘Rest of world' is attached, together with the actual interview questions.
-ends-
Tim Cobb is available for interview.
For more information
Ariana Alvarenga
Public Relations
Phone: (03) 9829 8985
Mobile: 0409 187 487
Sue Voglis
Research & Public Relations Manager
Phone: (03) 9829 8057
Mobile: 0408 309 247
Notes to editors:
About Aviva
Aviva Australia is the local face of the global Aviva group - a world leader in financial services.
Aviva is the world's fifth-largest insurance group^ and the largest insurance services provider in the United Kingdom. We are the leading provider of life and pension products in Europe and are actively growing our long-term savings businesses in Asian markets, the USA and Australia.
We have premium income and investment sales of $112 billion* and $831 billion* of assets under management. Our 54,000 employees serve over 50 million customers in 28 countries.
Aviva has over 150 years of continuous operation in Australia, where our main activities are life insurance, investments and superannuation.
Aviva's consistent record of innovation in the financial planning market dates back to the early 1990s when its platform first allowed a range of investments to be consolidated into one portfolio. Today, Aviva continues to lead the industry with award-winning life insurance, investments and superannuation products.
Together with Aviva Investors, a funds management company which is also part of the Aviva group, in Australia, Aviva manages or administers more than $19.2 billion in funds for more than 350,000 customers.
*Figures quoted are at 31 December 2008 and in Australian dollars.
^ Based on gross worldwide premiums at 31 December 2007.
Disclaimer
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