Australians are bracing for a recession by Christmas with new research showing household anxiety over the economy has reached a worrying level.
According to Finder, 64 per cent of Australians believe the country is either likely or certain to fall into recession by the end of the year.
That equates to 13.7 million people expecting a serious economic downturn within months.
The figures come as many households continue to feel the pressure of higher bills, mortgage repayments, rent, groceries and insurance costs. Separate Finder research also found 42 per cent of Australians have less than $1000 in savings, leaving many with little room to move if their hours are cut, prices rise again, or an unexpected bill lands.
Sarah Megginson, personal finance expert at Finder, said the results showed how unsettled many families were feeling.
“Families all over the country are feeling a big financial squeeze, and many are worried things will get worse before they improve,” she said.
“While a recession isn’t guaranteed, the fact that so many people expect one shows just how anxious they are.”
Finder’s survey of 1017 respondents found 48 per cent believe a recession is likely by the end of the year, while 16 per cent believe it is certain.
Another 15 per cent said they did not know, 18 per cent said a recession was unlikely, and just 3 per cent believed it certainly would not happen.
Megginson said the fear alone was already influencing how people behave with money.
“Families are becoming more cautious about spending money and taking on new debt,” she said.
For older Australians, that caution may feel especially familiar as many have lived through downturns before, but this one comes at a time when retirees, pensioners and people nearing retirement are already watching every dollar more closely.
Those on fixed incomes have less flexibility when essentials rise. Those still working may be concerned about job security, super balances, adult children under pressure, or whether retirement plans need to be pushed back.
Megginson said the best response was not panic, but preparation.
“Economic uncertainty is scary, but taking a few proactive steps today can help you feel much more in control of whatever comes next,” she said.
Finder recommends starting with debt: paying down high-interest debt can ease pressure if income drops or expenses rise.
The next step is emergency savings where even a small buffer can make a difference when the car breaks down, the hot water system fails, or a medical bill arrives.
Households are also being urged to revisit their budgets line by line: old grocery, fuel and insurance estimates may no longer reflect what people are actually spending.
Superannuation is another area to check and Finder says people with more than one super fund may be paying multiple sets of fees, which can quietly eat into retirement savings over time.
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