Australians less financially aware

Tassin Barnard

The results of a survey commissioned by big insurer MetLife has tended to highlight the need for financial education.

The Metlife study, released on Monday, revealed that Australians tended to be very concerned about their financial situation in the event of premature death, disability or serious illness, but were largely unprepared to address the situation.

What is more, the study found that Australian employees lag behind their counterparts in the US and the UK in terms of being capable of planning for their financial futures.

It found that 58 per cent of employees surveyed in Australia had not taken steps to determine their household’s life insurance needs, compared to 40 per cent in the US and 22 per cent in the United Kingdom.

As well, 65 per cent of Australian employees had not taken steps to assess household income needs in the case of disability, compared to 56 per cent in the UK and US.

The study, which represents an extension of similar research conducted in the US and the UK, found that workforce shortages are prompting employers to reconsider their benefits strategies and find new ways to attract and retain highly skilled workers.

Metlife Australia chief executive Tassin Barnard said the research underscored the insurance gap found by previous studies but pointed out that it had also identified how employers might hold at least some of the answers in terms of providing benefits to retain staff.

“There is a clear opportunity for Australian businesses to both help their employees and attract top talent,” she said. “Experience in the US suggests that well-targeted financial benefits can help attract, retain and reward talented people.”