DUE to a lack of savings, up to 3.7 million Australians won't be able to cope if the cost of living rises, a survey shows.   

And they are already struggling to make ends meet and have little to no savings, according to the Suncorp Life Confidence Index.

They believe their household budget will not allow for any increases in living expenses.

The index measures the ability to cope with job losses and rises in costs of housing, petrol, electricity and essential living expenses.

Suncorp Life chief financial officer John O'Farrell said the numbers were concerning.

"With the cost of fruit and vegetables expected to rise, today's inflation figures could be the tipping point for millions of Australians," Mr O'Farrell said yesterday.



Comments on this story

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     sick of it all Posted at 12:09 PM January 26, 2011

         So are we supposed to not eat today to save for food tomorrow?

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     Public Speaker Posted at 12:08 PM January 26, 2011

         Ive said it for the last six months this country is heading for the biggest recession, one that has not been seen since the depression. Here it comes. Businesses will fail, unemployment will go up etc. For all those people saying what about mining, remember mining employees less than 1 % of the population, and they cannot support everything, also they are employing companies outside of Australia to build all the infrastructure. To all of the Howard supporters, this will be because of the rapid rise of housing etc between 2002 and 2007, not what has happen recently.

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     Don of Cairns Posted at 11:43 AM January 26, 2011

         Why put your money into the bank when the government will just tax it the same as your wages.