Australians face uncertain financial future

Almost one third of Australians face an uncertain financial future, a factor which is holding back their happiness in life, according to the study, aimed at measuring financial wellbeing, released by Commonwealth Bank and the Melbourne Institute.

The study also said that because of their lack of skills to manage their money well, one in four Australians admitted they were unable to enjoy their lives.

Further to that, close to one-third said that their lives were often or always controlled by their finances.

Related News:

Also, about one in three respondents had low financial resilience, with 31 per cent observed a low savings balance and 37 per cent said they could not handle a major unexpected expense.

However, at the same time, some two-thirds of respondents had high financial wellbeing in either self -reported or observed scales, according to the study.

Pete Steel, Executive General Manager Digital at CBA, said: “Financial wellbeing is a complex issue. The Scales research is a significant contribution to the conversations about what financial wellbeing means in Australia.

“We have an ambitious purpose to improve the financial wellbeing of our customers and communities, but we know there’s no ‘one-size-fits-all’ approach to financial wellbeing. This is the challenging part when it comes to measuring - and helping to improve - their financial wellbeing.”

The research defined financial wellbeing as ability to:

  • Meet financial obligations
  • Financial freedom to make choices that allow enjoy life
  • Having control of one’s finances
  • Having financial security – now, in the future, and under possible adverse circumstances.

Related Content

RC puts onus back on individual: BFO

While industry codes of ethics will play a pivotal role in keeping financial institutions in line, the Board of Banking and Finance Oath (BFO) says th...Read more

FPA helps advisers navigate FASEA

The Financial Planning Association (FPA) has launched an online education portal, Return to Learn, with the intention of helping financial advisers na...Read more

RC to improve financial advice: SMSF Association

The final report of the Royal Commission has laid groundwork for improvement of the financial services industry through detailed reforms, and will hel...Read more



Add new comment