Less than half of Australian adults are considered financial ‘well’, with one in three workers deemed ‘unwell’ and in serious need of financial improvement, according to the Financial Wellness Index from The Workplace Super Specialists Australia (WSSA).
A total of 29 per cent of surveyed workers were considered ‘on the way to wellness’, while only 26 per cent were rated as being financially well, and a mere six per cent in the highest category of wellness.
The study tracked respondent answers to objective and subjective questions on long-term finance, concluding that shorter term financial objectives were the key to building long-term financial goals that could be fulfilled.
The lack of financial wellness was also said to be driving absenteeism and presentism in the Australian workplace, costing businesses around $33 billion annually.
WSSA president, Terry Rhodes, said that these findings should be taken as a warning and that employers needed to work with their employees to ensure stability.
“This data should be regarded as a real cry for help from everyday Australians living the day-to-day reality of their financial wellness,” he said.
“It is a situation that is both stressful and costly for employees and employers.”
Stress was found to be the largest behavioural impact of poor financial wellness, followed by distraction in the workplace, low morale and low health levels. Financial literacy has been pinned as a key driver of wellness, with more than half of those in the ‘financially unwell’ category falling into poor or very poor financial literacy ratings.
A changing of mindset, a new strategy, and assistance could help turn around the stats, according to Rhodes.
“There is a huge opportunity for employers and financial advisers to have a positive impact on the financial wellbeing of their employees through engagement programs that build knowledge, help them to achieve their goals, are relevant and affordable,” Rhodes said.
