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.
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.