An era of rapid social, behavioural and technological change is dividing Australia’s population into two distinct tribes: those who are leading the way in new behaviours and lifestyles, and those who are simply failing to embrace change.
A new lifestyle trends survey by KPMG in Australia, in collaboration with Nine Rewards, shows that we are a nation comprised of two types of people – the leaders of social change and the laggards. These groups can also be described as the progressives and the conservatives, the connected and the disconnected.
The divisions are not always based on age or income. Rather, personal decisions – such as having children, adopting technology, connecting with friends and having an exercise regime – were found to have a far more powerful influence on mindsets, behaviours and ultimately, happiness.
The survey found:
- the leaders of new behaviours are people with multiple friends, the latest technology, multiple credit cards, and a propensity to take regular holidays.
- At the opposite end of the spectrum are people who do not have the latest technology and are not connecting online, don’t eat out and don’t take holidays – at all, in some cases.
"There are two Australias: the edgy, the connected and the modern-lifestyle-inclined – and then there are the conservatives," according to KPMG's demographer, Bernard Salt. "In connecting with mainstream Australia it is important for business and for communications groups to strike the right balance between appealing to the progressives and also remembering to engage with the other Australia."
A key observation that emerged from the survey is the division that is emerging between the lifestyle and behaviour of those with children, and those without.
Those without children largely fall into two age groups: 18-34 and 55-plus. The prime child rearing time in life is 35-54 years. During these 20 child-rearing years, there is discernibly different lifestyle behavior, especially for those aged in their 40s.
"Those with young and dependent children tend not to eat out or to have holidays. This is the time in life when households are most likely to have a series of credit cards," says Salt.
"Confrontingly, this is also the time in life when people are least likely to be happy in their relationship. Australians are most likely to separate and divorce in their late 30s or early 40s but there appears to be another group that "hangs on" in the early years of marriage and as a result, remains unhappy later in their 40s."
- The richest households usually contain KIPPERS (Kids in Parents' Pockets Eroding Retirement Savings): Five percent of surveyed households earn more than $200,000 pa whereas 11 percent earn less than $30,000 a year. The rich households tend to comprise a couple (generally aged 45-59) with children aged 18-24. This is the classic KIPPER household where Generation Y children live at home with their parents. The poorer household typically comprises 18-24 year olds (likely students) or 65+ (pensioners). Everyone else (84%) fits in between. "The survey possibly reveals why 18-24 year olds are so keen to stay in the family home: when they move out they transition from the richest households in Australia to the poorest," says Salt.
- Those who eat out and those who eat in – those with children either can’t afford to or can’t be bothered eating out: The survey shows that 29 percent of Australians eat out at least once a week. However, middle aged couples in the 40s and with children are the least likely to be seen in the hip cafes and restaurants of urban Australia.
- Those who holiday and those who don’t – Gen Y and Baby Boomers are forever on holiday: The survey shows that 11 percent of Australians holiday at least three times or more per year. The most avid holidaymakers are 25-29 year olds and the 60+ year olds: 15 percent of both groups take 3+ holidays per year. The least likely to holiday are the same as those least likely to eat out: less than 5 percent of 40-somethings take three or more holidays a year.
- Who are the heaviest users of credit cards? Baby Boomers, not Gen Y: Multiple card users are more likely to be aged over 45, whereas new credit card users are more likely to be aged 18-24 years. "This finding runs counter to what many might think is the issue with credit cards. It’s not Generation Y with multiple cards; it’s the boomers," comments Salt.
- Social media - the new tool of connection in the 21st century: The one topic that almost all survey participants agree on is a love of social media. Nine per cent of Australians do not use the internet; 91 percent do. The most popular forms of interaction are email (92%), Facebook (69%), Skype (34%), MSN (25%), and Google (11%).
- Love and happiness in a virtual world: The survey shows that 13 percent of Australians have met a partner online, although this proportion rises to 29 per cent for those aged 30-34 years. The survey also asked respondents if they were happy in their relationship. Some 95 percent said yes. Of those that said no the proportion was highest (11 percent) among those aged 45-49 years. "These are the peak stress years associated with child rearing: teenagers and heavy financial burdens appear. The peak time for divorce is late 30s to early 40s. It might be that those who "stay for the sake of the kids" come to regret this decision within a decade," says Salt. Another part of the survey shows that the greatest uptake in sites such as eHarmony (dating) is the early 50s which possibly shows the outcome of unhappiness in a late 40s relationship.
"The things that make Australians happy are not being in debt, not being overweight, having an exercise regime, and having friends," says Bernard Salt. "And these are largely within individual control. These are not issues that are imposed from beyond such as job insecurity.”
The secret to a happy life in Australia?
"Having the self discipline to manage the excesses of modern life," according to Bernard Salt. "What makes people happy later in life is the ability to make the right choices: in cultivating strong relationships, in having the ability to manage debt, to build strong friendships, to maintain a balanced approach to exercise and weight control. Manage these things and you are set for a happy life in Australia."
KPMG in Australia, in collaboration with Nine Rewards, conducted a survey of 2,013 Australians during July 2011 in order to ascertain the nation’s latest lifestyle trends.
Survey responses were weighted to reflect the broader demographic composition of the Australian population. Questions were asked across a range of topics covering basic demography, confidence in the future, lifestyle, behaviour and the use of technology.