Workplace Financial Wellness Index · CoreData hypothesised that people’s financial wellness is...

WSSAWorkplaceFinancialWellnessIndex|PAGE1WWW.COREDATA.COM.AU

WWW.COREDATA.COM.AU

Workplace Financial Wellness Index Workplace Super Special ists of Austral ia

2016


Contents

ExecutiveSummary.......................................................................................................................4

TheCostofPoorFinancialWellness.........................................................................................4

CurrentWorkplaceFinancialWellness.....................................................................................4

WhatDoesWellnessLookLike?...............................................................................................5

Methodology.................................................................................................................................6

DefiningFinancialWellness......................................................................................................6

ConstructionoftheIndex.........................................................................................................7

EmployerResults..........................................................................................................................8

EffectsonBusinesses................................................................................................................8

WhatcantheEmployersDo?....................................................................................................9

EmployerInterventionsCreateValue.....................................................................................10

HowBesttoCommunicatewithEmployees?.........................................................................11

WhatProgramsdoEmployersWant?.....................................................................................12

WellnessIndexResults................................................................................................................13

WorkplaceFinancialWellnessIndex.......................................................................................13

JourneytoFinancialWellness.................................................................................................14

FinancialLiteracy.....................................................................................................................16

GenderandFinancialWellness...............................................................................................17

WhatHappenswithAge?.......................................................................................................18

WhatDotheBandsLookLike?...................................................................................................19

FinanciallyUnwell...................................................................................................................19

RoomforImprovement..........................................................................................................21

OntheWaytoWellness.........................................................................................................23

FinanciallyWell.......................................................................................................................24

Superstars...............................................................................................................................25


ComponentsofWellness............................................................................................................26

Budgeting................................................................................................................................26

DebtManagement..................................................................................................................27

FinancialLiteracy.....................................................................................................................29

JobSecurity.............................................................................................................................30

Superannuation......................................................................................................................31

RiskManagement...................................................................................................................32

PlanningfortheFuture...........................................................................................................33

RoleoftheAdviser......................................................................................................................34

Appendices.................................................................................................................................35

Survey.........................................................................................................................................36

Demographic...............................................................................................................................44

CoreData.....................................................................................................................................47

AboutUs.................................................................................................................................47


Executive Summary The Cost of Poor Financial Wellness

• Inadditiontothesubstantialpersonalcosts,poorfinancialwellnessisamajordragonAustralianbusinesses,thetotalcostestimatedtobe$33billionperannum1.

• Employeeswholackfinancialwellnesstendtobemorestressed,asobservedbymorethanthreeinfiveemployers(63.3%)2.Asignificantnumberofemployersalsonotedpresenteeism(43.3%),lowmorale(30%),andabsenteeism(16.7%)asotherconsequencesofpoorfinancialwellness.

• Despitethecostsofpoorfinancialwellness,only15.2%ofthebusinessessurveyedhadimplementedafinancialwellnessprogram.

• Ofthosethathave,threeinfivesawanincreaseintheoverallfinancialwellnessoftheiremployeesoverthelastsixmonths.Thisissixtimestherateofimprovementofbusinesseswithoutafinancialwellnessprogram.

• Themajorityofemployersseeprogramstoimprovefinancialliteracyoftheiremployeesasveryvaluableorextremelyvaluable(62%).

Current Workplace Financial Wellness • Theoverallwellnessscoreforallrespondents(n=1,440)was49,indicatingthatthe

averagewellnessacrossAustraliaismoderate.• However,thereisalargespreadofresultsbetweenrespondents.6%ofrespondents

wereclassifiedasbeing“superstars”meaningtheyhaveexcellentfinancialwellnessand12%ofrespondentswere“financiallyunwell”indicatingthattheyareindesperateneedoffinancialhelp.

• Thereisaclearhierarchyofareasthathighlighta“journeytofinancialwellness”.Thisshowsthatassomeoneimprovestheirfinancialwellness,theytypicallystarttofocusonlonger-termgoals.Peopletendtodealwiththemosttopofmindfinancialissuesfirstastheseusuallycausemostfinancialworries.

• Financialliteracyunderpinsfinancialwellness,with95%ofthesuperstarshavingstrongorverystrongfinancialliteracycomparedtolessthan4%ofthefinanciallyunwell.

• MalesaretypicallymorefinanciallywellthanFemales,possiblyduetofactorssuchasworkplacediscrimination,wageceilingsandfinancialabusewithinrelationships.

• Agehaslittleeffectonthewellnessofeachindividual,indicatingthatfinancialwellnessisnotanabsolutemeasure,butratherisrelativetoeachindividual’ssituation.

1(PriceWaterhouseCoopers,2010)2Ofemployerswhoindicatedtheirworkplaceswellnesswasbelowexcellent


What Does Wellness Look Like?

*Figuresarerounded,summightnotequateto100%.

• Only6%ofthe‘FinanciallyUnwell’payofftheircreditcardregularly,21%indicated

theyspendmorethantheyearn• Twointhree‘RoomforImprovement’employeessavemoneyregularly,yetfewwere

confidenttheyhadadequateinsurance(12%)• Almostoneintwo(45%)whowere‘OntheirwaytoWellness’indicatedtheyhadset

specificfinancialgoals,andtwointhreehaveaveragefinancialliteracy• Morethan4in5‘FinanciallyWell’employeeshavenocreditcarddebtandoverhalf

havearetirementsavingsplan• ‘Superstars’scoredthetopscoreinmostsections,with90%havingaretirement

savingsplanand60%documentingtheirestateplan


FinancialWellness

Shorttermneeds

Reality

Longtermneeds

PercepBons

Methodology Defining Financial Wellness Thereisnosingle,agreedupondefinitionforFinancialWellness,buttherearesomecommoncharacteristicsusedinpracticeinvariousprogramsandresearch.Priortothecommencementoftheproject,CoreDataconductedaliteraturereviewofthecurrentknowledgesurroundingfinancialwellness,andconcludedthattherewasaneedfora“multifacetedandholistic”approachwhendefiningfinancialwellness.Theindexneededtomeasureanemployee’scompletefinancialpictureandoverallfinancialhealth.

Findingsfromtheliteraturereviewhighlightedtheneedforadynamicmeasurethatcanchangethroughanindividual’slife,andneededtolookathowalloftheaspectsofanindividual’sfinanciallifefitstogethertodriveoverallfinancialwellbeing.

Forthepurposesofthisindex,FinancialWellnessmaybedefinedas:

• astateofbeinghealthy,happyandfreefromanyfinancialworriesandstressors• beingabletoliveyourdesiredlifestylefortherestofyourlifewithoutfinancial

anxietyorfear• havingaclearunderstandingoftheirfinancialsituationandhavingtheabilityto

livewithintheirfinancialmeans

TheFinancialWellnessNexus

Freefromfinancialstressandworry

Preparingforthefuture

Livingwithinmeans

Sufficientresourcesandfinancialresilience


Construction of the Index Theindexconsistsofarangeofkeycomponentssuchasbudgeting,levelofsavings,debtlevels,riskmanagementandplanningforthefuture.CoreDataselectedkeymetricsthatmeasurebothlongandshorttermfinancialneedsaswellasobjectiveandsubjectiveviewsofeachmeasure.

Theindexisscoredonarangefromzeroto100,wherezeroistheworstpossiblescoreand100isthebestpossiblescore.50isconsideredtobealevelof“moderate”wellness.

CoreDatahypothesisedthatpeople’sfinancialwellnessisnotsolelyreliantonfactorssuchasageandwealth.Financialwellnessshouldbereflectiveofeachindividual’ssituation,ratherthanameasureofwealthorconsumersentiment.

Additionally,asurveyofemployerswasruninparalleltotheIndexfieldworktomeasuretheeffectsofdifferinglevelsofwellnessintheworkplace.


Employer Results Effects on Businesses Oftheemployerswhoobservedalackoffinancialwellnessintheirworkplace,morethanthreeinfive(63.3%)couldidentifystressedemployees;43.3%noticedpresenteeism(unengaged/distractedemployees)and30.0%sawlowmorale.Lossinproductivityisamajorproblemforemployersacrossthecountryfaceandamajordragontheprofitabilityofbusinesses.AcrosstheAustralianeconomy,thecostofthesefactorsisapproximately$33billioneachyear3.

Whatimpactdoyouseeinworkplacebehaviourbecauseofthisfinancialstress?

Theselargenumbersofnoticeablystressed,unhappy,anddisengagedemployeeshighlighttheneedforeducationandfinancialplanningformoreAustraliansintheworkplace.Thesesignsshouldbeseenacryforhelp,asmanyemployersarenoticingnon-trivialrepercussionsfrompoorfinancialwellness.

3(PriceWaterhouseCoopers,2010)

63.3

43.3

30.0

23.3

16.7

10.0

6.7

0 25 50 75

Stressedemployees

Unengaged/distractedemployees

Lowmorale

Unhealthyemployees

Absenteeism

OtherformsofreducedproducBvity

Other

%Yes*Mulmpleanswersallowed


What can the Employers Do? Employersarenotpowerlesswhendealingwithpoorfinancialwellnessofemployees.Thegraphbelowhighlightsthedifferencebetweentheemployerswhohaveimplementedafinancialwellnessprograminthepastyearversusthosewhohavenot.Thosewhohaveimplementedafinancialwellnessprogrambelievetheirworkplacewellnesshasimproved(60%)orremainedthesame(40%).

Howwouldyousaythefinancialwellnessofyouremployeeshaschangedoverthepast6months?4

Incontrast,ofthosewhohavenotimplementedafinancialwellnessprogram,only10.7%claimtheirworkplace’sfinancialwellnesshasimprovedandthesamenumberbelievewellnesshasdecreased.Workplacesshouldbeconstantlyaimingtoimprovethefinancialwellnessoftheiremployees,asthereisno“finalstate”.Everyone’sfinancialsituationshouldbeconstantlymonitoredandcanalwaysbeimproved.

Theseimprovementshavematerialimpactsonmoraleandproductivityintheworkplace,aslevelsofengagement,productivityanddiscretionaryeffortarefivetimesloweramongstthosewithfinancialworries5.Additionally,accordingtotheAustralianPsychologicalSociety,a2014studyfoundthatfinancialissuesweretheleadingcauseofstressforoneintwoAustralians6.Theseresultsareworrying,highlightingtheneedforeducationintheworkplace.

4Colouredbarsrepresenttheresponsestothequestion:“Haveyouimplementedafinancialwellnessprograminthepast12months”5(Barrett,2014)6(StressandWellbeinginAustraliaSurvey,2014)

60.0

40.0

10.7

78.6

10.7

0

20

40

60

80

Improved/DramaBcallyImproved

Constant Decreased

%

Yes No


Employer Interventions Create Value EmployersandEmployeesbothderivevaluefromfinancialliteracyeducationwithintheworkplace.Morethanthreeinfiveemployersbelievethevaluetoemployeesoffinancialliteracyeducationaseitherextremelyvaluableorveryvaluable.Only7%ofemployersdidnotassociateanyvalueofthistypeoftrainingfortheiremployees.

Asshownlaterinthereport,financialliteracyunderpinsfinancialwellness,asthosewhoreporthavinghigherfinancialliteracytypicallyhavestrongerfinancialplansinplace.Thefindingsfromtheindexhavehighlightedthatfinancialliteracyisakeybarriertowellness,withthosewithpoorfinancialliteracyoftenfallingdownatthesimplestaspectsoffinancialwellnesssuchasbudgetinganddebtmanagement.

Whatvaluedoyouthinkyouremployeesgetfromhelpingthemdeveloptheirfinancialliteracy?

Becauseemployersfindtheseservicesvaluable,thereisacleargapinthemarketthatcanbefilledbyfinancialplannersbeingpresentintheworkplace.RemovingthefinancialliteracybarrierfrommanyAustralianswouldprovidethemthetoolstheyneedtoimprovetheirfinancialwellness.

62.1

31.0

6.9

0

20

40

60

80

Extremelyvaluableorveryvaluable

Somewhatvaluable NotreallyvaluableorNotvaluableatall

%


0%

20%

40%

60%

80%

100%

Helpmembersunderstandwhatthey

willneedforreBrement

One-on-onesessionswiththeadviser

Insuranceadvice

EducaBonaround

employeebenefits

Seminars Investmentadvice

Helpmembersdeveloptheir

financialliteracy

NewsleZers

Valuable SomewhatValuable NotValuable

How Best to Communicate with Employees? Accordingtoemployers,themostvaluablewayforplannerstocommunicatewiththeiremployeesisthroughoneononesessionswithanadviser.Advisersareabletodeliverthemostvaluetoanemployeethroughoneononesessions,astheycanprovidepersonalisedadvice.

Whatvaluedoyouthinkyourmembersgetfromthefollowingservices?

Thevastmajority(89.7%)ofemployersbelieveoneononesessionswithanadviserareextremelyvaluableorveryvaluable.Theseresultsaresimilarthoseofthe2011studyconductedbyCoreData,where82.8%ofemployersindicatedthatoneononesessionswithemployerswereextremelyvaluableorveryvaluable.

Insayingthis,morethanhalfofemployerssawvalueinseminars,andover60%ratededucationaroundfinancialliteracyasvaluable.

Theseresultshighlighttheneedforconvenientfinancialadvicethatcanbeaccessedreadily.Locationandaccessibilityarekeybarrierstomanyreceivingfinancialadvice,andthusworkplaceadviserscanhelpbridgethegapforthosewhoareunadvised.Inaddition,workplaceadvisersareabletoprovidepersonalisedadviceinacosteffectivemanner.


What Programs do Employers Want? Themajorityofemployershaveindicatedthattheywouldliketoseemultipleservicesprovidedbyworkplacesuperadvisers.Inparticular,retirementplanningservicesandbudgetingservicesscoredhighly,withalmostsevenin10employersindicatingtheywouldliketheseservices.Thiscouldbeanindicationofwheremanyemployersareseeingday-to-dayfinancialstress,asmanyemployeespointtothecostoflivingasareasontheyshouldgetaraise.Thisisacommontrend,withTimemagazineindicatingthattwothirdsofrespondentstoPayScales’annualCompensationBestPracticesreportgavecostoflivingraises7.

Whatotherserviceswouldyouliketoseeprovidedbyworkplacesuperadvisers?

Retirementplanningisalsounsurprising,asmanyemployerswouldbeexposedtoemployeesworkingpasttheiridealretirement.Morethanoneintwoemployersalsowantfinancialliteracyprogramsintheworkplace.Financialliteracyprogramscanhaveamajorimpactonthewellnessofemployeesintheworkplace.Financialliteracyprogramsarethemosteffectivetoolthatworkplacesuperadviserscanusetoprovidelowcostadvicetoawideaudience.Thisalsohastheaddedbenefitofprovidingaclearpathtopurchasingadvice.

7(White,2015)

69.0 69.065.5

58.6 58.6 58.6

48.3

0

20

40

60

80

ReBrementplanning

BudgeBng Investmentadvice

Financialliteracyprograms

Payingoffdebt

Buyingahouse

Savingforchildren'seducaBon

%Yes

*Mulmpleanswersallowed


Wellness Index Results Workplace Financial Wellness Index Theworkplacefinancialwellnessindexcomprisedofresultsfrom1,440Australianworkersfoundthattheaveragewellnessofemployeesacrossthecountrywas49.

WellnessIndex

Oneofthemostinterestingfindingsfromtheresearchwasthespreadofresults.Theminimumwellnessscorewas12whereasthemaximumwellnessscorewas86.Thelargespreadbetweenthebottomandtopresponseshighlightsthemajordifferencesamongworkers.

CoreDatahascategorisedpeopleinfivebandsbasedontheirwellnessscores,thesebandsareasfollows:

• ‘FinanciallyUnwell’:Respondentswhoscoredbelow35.(12%ofrespondents)• ‘RoomforImprovement’:Respondentswhoscoredbetween35and44.(27%of

respondents)• ‘OnthewaytoWellness’:Respondentswhoscoredbetween45and54.(29%of

respondents)• ‘FinanciallyWell’:Respondentswhoscoredbetween55and69.(26%of

respondents)• ‘Superstars’:Respondentswhoscored70orabove.(6%ofrespondents)

Typically,theFinanciallyUnwellandRoomforImprovementgroupsareinconsiderableneedofhelpwiththeirfinancialsituationandaccountforalmosttwoinfiveAustralians.Incontrast,thosewhoarefinanciallywellorhave‘Superstar’statustypicallyhavemostoftheirfinances


sorted,manyhavinglong-termplanssuchasfinancialgoalsandriskmanagementstrategies.AlmostthreeintenAustraliansare“onthewaytowellness”,havingadequatewellnessintheshortterm,throughgoodbudgetinganddebtmanagementhabits,howeverstilllackfinancialplanningskillandlongtermgoalsthatwouldleadthemtotruefinancialwellness.

TheseresultshighlightamajorcalltoactionformanyAustralians.

Journey to Financial Wellness Thereisaclearhierarchyofhigh-levelconceptsthatdefineeachwellnessbandandthereisaclearpathtobecomingmorefinanciallywell.Thosewhoaremostfinanciallyunwelltypicallyspendmorethantheyearn,haveuncontrolledbaddebtandarenotinapositiontoplanforthefuture.Forthoseindividuals,thepathtofinancialwellnessstartswithsimplysettingabudget.Fromthatstartingpoint,thatpersonwouldbeabletobringtheirbaddebtundercontrol,andthenlooktobuildlong-termgoals.

Incontrast,someonewhoismostfinanciallywell,typicallyhasalloftheirfinancialaffairsinplace.Forthoseindividuals,thekeyismonitoringandreviewinginvestmentsandfinancialplansonaregularbasis.

However,themajorityofpeoplefallwithintheextremes,wheretheycanbudgetproperly,somemayhavebaddebt,butthemajorityneedtobuildtheirfinancialliteracy.


Thegraphbelowillustratestheproportionofpeoplewhohavescoredabove50infivekeyareas,namely:BudgetingandExpenseManagement,Superannuation,FinancialKnowledge,RiskManagement,andPlanningfortheFuture8.

ProportionofWellnessBandsthatScoredabove50

Thosewhoarefinanciallyunwelltypicallydonotscorewellinanyarea,althoughsomehavetheirbudgetingontrack.Thosewhoareontheirwaytowellnesstypicallyhavetheirbudgetsontrack,butthemajoritylackfinancialknowledgeandriskmanagementplans.Thosewithsuperiorfinancialwellnesstendtoexcelinallareasandhavewelldevelopedplansforthefuture.

Thisnaturalprogressionhighlightstheclearpathtofinancialwellness,takingcareofshort-termneedsfirst,andthenlookingtosetlong-termgoalstoensurefinancialsecurityinthefuture.Theseresultscanempoweremployeestoimprovetheirfinancialsituation,asitshowsthereisalwayssomethingtheycanfocusontoimprovetheirsituation,withoutpresentingamaster“grandplan”thatdemotivatesthem.Asbestaspossible,advisersintheworkplaceneedtoempoweremployeestogetonthepathtowellness.

8Notethateachofthesekeyareasareanaggregationofquestionsanddonotformanexhaustivelistofallofthecomponentsoftheindex.

17.8

61.9

86.6

96.3100

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20.9

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100

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FinanciallyUnwell RoomforImprovement

OnthewaytoWellness

FinanciallyWell SuperiorFinancialWellness

%

BudgeBngandExpense SuperannuaBon FinancialKnowledge


Financial Literacy Thisresearchhighlightedthatakeydriveroffinancialwellnessintheworkplacewastherespondent’sfinancialliteracy.Thereisaclearcorrelationbetweenrespondentswhoindicatedthattheyhadstrongorverystrongfinancialknowledgeandtheirfinalwellnessscore.

Howwouldyourateyourfinancialknowledge?

Morethanoneintwofinanciallyunwellindividualsindicatedthattheyhadpoororverypoorfinancialknowledge,whereasnoonewithsuperiorfinancialwellness(i.e.Superstars)indicatedtheyhadpoorfinancialknowledge.

Furthermore,financialliteracydrovemuchoftheotheraspectsoffinancialwellness,suchasmanagementofbaddebt.Forexample,almost10%ofthosewhoscoredfinanciallyunwellindicatedthattheypaidlessthantheminimumamountontheircreditcardlastmonth,andonly6%indicatedtheypayofftheircreditcardinfulleverymonth.Incontrast,lessthan3%oftheSuperstarswereunabletopayofftheircreditcardlastmonth.

52.7

27.8

11.5

1.9

43.8

60.366.6

43.5

4.83.611.9

21.9

54.7

95.2

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OnthewaytoWellness


%

Poororverypoor Aboutaverage Strongorverystrong


Gender and Financial Wellness Adifferenceingenderwasshownintheresultsofthesurvey,withalmostoneintwomalesbeingconsideredfinanciallywell,comparedtolessthanoneinfourfemales.Theconversewasalsotrue,withlessthanonequarterofmalesbeingconsideredfinanciallyunwellorhavingroomforimprovement,comparedtoalmosthalfoffemales.

WellnessscorevsGender

Thisdifferencereflectsknownfinancialinequalitiesbetweenmalesandfemalesintheworkplace.Thismayalsobeindicativeofkeydifferencesbetweenmalesandfemalesintermsoffinancialdecision-makingandperceptions.Manyfemalesmaynotobjectivelybeinaworsefinancialsituationbutworryabouttheirfinances.Malestendtobemoreconfidentwhenitcomestofinancialdecisionmaking,regardlessofthelevelofobjectivefinancialliteracytheypossess.Thesedifferencesindicatethatfemalesneedtobeempoweredtotakecontroloftheirfinances,ratherthanavoidthediscussion.

PreviousresearchbyCoreDatahasshownthat70.3%offemalesinarelationshipfeelatleastsomewhatreliantontheirpartnerforfinancialsupport9.Themajorityoffemales(86%)managethehouseholdbudget;howeveronlytwoinfivehaveassetsintheirownname,reflectingthelatentvulnerabilitywomenfacefinancially.

“Ihavetoanswerwithregardtomymaritalstatus,sothereisnoobviousdistinctionbetweenmyhusbandandmyself.Ifeelabitmisrepresentedasaresult

ofhisbadhabits/poorfinancialdecisions.”-(Female,53,FinanciallyUnwell)

Itisimportanttorecognisethespecificchallengesthatfemaleemployeesfaceintheworkforce.Inparticular,careerpunctuation,wageceilingsanddiscriminationallaffecttheirfinancialwellness.Theseissuesneedtobeacknowledgedonacompanywidebasisinordertoimprovethefemalewellnessscore.

9(CoreData,2016)

14.7

32.929.9

18.3

4.26.6

16.7

28.8

39.4

8.5

0

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45


OnthewaytoWellness


%

Female Male


What Happens with Age? Thegraphbelowisascatterplotoftherespondents’ageagainsttheirwellnessscore.Atallagesthereisconsiderablespread,withonlyaslightaverageincreaseinwellnesswithage.Thishighlightsthatatallagesitispossibletoachievefinancialwellnessanditshowsthateventhoseapproachingretirementcanstillbefinanciallyunwell.

WellnessScorevsAge

Thisprovidesachallengetoemployersandworkplacesuperannuationadvisers,asarenostrongdemographicpredictorsoffinancialwellness.Employersneedtobeproactiveinunderstandingthechallengesthatfaceeachspecificemployee,ratherthanmakingassumptionsabouttheentireworkplace.

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What Do the Bands Look Like? Financially Unwell Thosewhoarefinanciallyunwellscoredthelowestcategoryinmostquestionsinthesurvey.Typically,theystrugglewiththefirstbuildingblockstowellness,i.e.budgetinganddebtmanagement.Insayingthis,budgetingisthestrongestareaformostofthefinanciallyunwell,withanaveragescoreof40.4outof100inthissection,comparedto16.6intheplanningforthefuturesection.

Oneofthemostalarmingaspectsofthefinanciallyunwellistheirlevelofbaddebt.Only6%ofthosewhoarefinanciallyunwellconsistentlypayofftheircreditcard10and10%paidlessthantheminimumamountontheircreditcardlastmonth.Thesearealarmingstatistics,highlightingaconsiderablenumberofpeopleareindesperateneedofaneducationandsupport.

“TakingthisSurveyhasscaredmewitlessregardingmyfinances....”(Male,29,FinanciallyUnwell)

106%oftotalcohort,including26.6%whodonotownacreditcard.

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100BudgeBngandExpense

SuperannuaBon

FinancialKnowledgeRiskManagement

Planning


Budgetingdoesnotgetmuchbetter,withmostnotsavingmoneyregularly.Almostoneintwo(46%)indicatedthattheydonotsaveanymoney,andmorethanoneinfive(21%)indicatedthattheyspendmorethantheyearn.

Duetothispoorbudgeting,almosttwointhreeexperiencedifficultywithpayingtheirbills:32%struggletopaytheirbills“reasonablyoften”,19%struggle“mostofthetime”while14%struggle“allofthetime”.Only3%ofthosewhoarefinanciallyunwellindicatedthattheydonotstruggletopaytheirbills.

Thefeaturesofthisgrouparequitedistinctfromtheothergroups.Inparticular,thisgroupisstressedandoverwhelmed,withalmostallofthosewhoarefinanciallyunwellindicatingthattheyarenotfinanciallysecureforthefuture(96%)andthevastmajorityindicatedtheirfinancesareoutofcontrol(91%).Inaddition,femalesareoverrepresentedinthisgroup,andmosthavepoorfinancialliteracy.Manyfeeltheycannotlivewithintheirmeans,andneedhelpwiththemostbasicfinancialplanningskills.


Room for Improvement Thosewhohave“RoomforImprovement”havereasonablebudgetingskills(averagescoreof53.8)andmosthavetheirdebtundercontrol.Themajority(67%)savemoneyregularly,andalmostoneinthreepaidofftheircreditcardinfulllastmonth11.Threein10(29.6%)paidmorethantheminimumamountontheircreditcard.Theremainderofthisgrouppaidtheminimumamountrequired(14.4%)orpaidlessthantheminimum(2.1%).

Thisgrouptypicallyhassomeanxietyabouttheirfinancialsituation,withthreeinfourindicatingthattheyfeeltheirfinancesareoutofcontrol.However,morethanhalfoftheserespondentsindicatedthattheydonotstruggletopaytheirbills12.Themajorityofthisgrouphaslaidthefoundationsingoodbudgetinganddebtmanagement,howeverneedsomehelpinmanagingtheirfinancialsituationtomovethroughthejourneytofinancialwellness.

Inaddition,themajorityofthisgroupwasunsurewhethertheyhaveadequateinsurance,withonly12%indicatingtheywereconfidentthattheyhadenoughlifeinsurancefortheirpartnerandthemselves.Poorriskmanagementisakeyfeatureofthosewhoarenotfinanciallywell,withlongtermplanningescapingmanyinthisgroup.

Financialliteracyisakeybarriertofinancialwellnessforthisgroup.Themajorityoftheserespondentsindicatedthattheyhadaveragefinancialknowledge,withalmostthreein10(28%)indicatingthattheyhavepoororverypoorfinancialknowledge.

1123.2%donotownacreditcard.1274%saidthey“Never”struggletopaytheirbills(21.4%),or“Notveryoften”dotheystruggle(52.6%)

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Manypeopleinthisgroupcouldbenefitinstantlyfromfinancialadvicesolelyfromrearrangingtheirfinances.46.1%ofpeopleindicatedthattheydidnotpayofftheircreditcardinfulllastmonth,and33.2%indicatedthattheydonotsaveanymoney.Thiswouldimplythatsomepeopleinthisgroupareputtingmoneyaside,butarenotpayingofftheircreditcardbillinfull.Affordablefinancialadvicewouldallowmanyofthesepeopletoimprovetheirfinancesdramatically,asitisclearmanypeopleinthiscohortneedasmallamountofguidancetogettheirfinancesbackontrack.


On the Way to Wellness Thisgrouptypicallyhasshort-termobjectivesundercontrolbutstillstruggleswithsettingandachievinglong-termfinancialgoals.Typically,thisgrouphasgoodbudgetingpractices,withmorethanthreeinfivehavingaspecifiedbudget,andonlyonein10indicatingthattheystruggletopaybillsreasonablyoften,ormoreoften.

Someinthisgroupstilldonotmeetcreditcardrepayments,asoneinfourpaidmorethantheminimumamountlastmonth,butlessthanthefullamount,and6%paideithertheminimumamountorlessthantheminimum.Morethanhalf(52%)havesetspecificfinancialgoals,indicatingthatmosthavemovedpastshorttermgoals,andlooktotryandsecureafinanciallysecurefuture.However,themajoritystilldonothaveadequateriskmanagementstrategiesinplace,with88%indicatingtheydonothaveariskmanagementstrategy.ThismeansthatthemajorityofAustraliansareexposedtosuddenandunexpectedevents.

“Thefeesthatfinancialadviserstakearehugethereforecannotaffordtogettheadvice…”-(Female,51,OntheWaytoWellness)

Thisgroupcouldbenefitfromfinancialadvicebygaininghelpinsettingplansforthefuture,especiallyinareasthatareeasytoputoff,suchasriskmanagement,estateplanning,andaformalretirementsavingsplan.Thisgrouphasreasonablefinancialliteracy,withthemajorityofrespondents(67%)indicatingthattheyhadaboutaveragefinancialliteracy,withanother22%indicatingtheyhadstrongorverystrongfinancialliteracy.Whilethisgroupisincontrolofsomeaspectsoftheirfinancialsituation,andmostdonotworryaboutmoneyonaweeklybasis,theystillhavealongwaytogotobetrulyfinanciallywell.

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Financially Well FinanciallyWellindividualstypicallyhavealloftheirshort-termfinancialgoalsinplace,howeversomestillscorepoorlyinplanningforthefuture.Thisgrouphasstrongfinancialliteracyandhasstrongbudgetinganddebtmanagementskills.Forexample,65%ofthefinanciallywellalwayspayofftheircreditcardinfulleverymonth,withanother19%eithernotowningacreditcard(8.5%)ortheypaiditoffinfulllastmonth,butnotalways(10.7%).

Riskmanagementisconsiderablybetteramongthefinanciallywell,with60%ofthefinanciallywellhavingariskmanagementstrategyinplace.Inaddition,81%haveindicatedthattheyhavespecificfinancialgoalsinplace.Themajorityofthefinanciallywell(79%)havelifeinsurancewith64.8%indicatingthattheyareconfidenttheyhaveenoughlifeinsurancetomeettheirneeds.

Typically,thosewhoarefinanciallywellareincontroloftheirfinancesandlooktoplanforthefuture.Twointhreefeelfinanciallysecureforthefutureandlessthanoneinthreefeelthattheirfinancesgetabitoutofcontrol.Themaindifferencebetweenthosewhoarefinanciallywellandthosewhohavesuperiorfinancialwellnessisthatthoseinthelattercategorytendtodocumenttheirfutureplans.

Afinancialplannercouldassistthosewhoarefinanciallywellinhelpingthemdocumentandmonitorfinancialplanstoensurefinancialsecuritymovingintothefuture.

0

25

50

75

100

BudgeBngandExpense

SuperannuaBon


Planning


Superstars Thosewhoare“Superstars”havefinancialwellnessthatissuperiortothosewhoarefinanciallywell,andtypicallyhavescoredthetopscoreinmostofthedifferentsections.“Superstars”havelittletonoanxietywhenitcomestotheirfinances,shortandlong-termfinancialgoalsadequatelydefined,andriskmanagement,estate,andretirementsavingsplansinplace.

Forexample,90%neverstruggletopaybills,andalmostall13neverstruggletomeetmortgageorrentrepayments.Additionally,81%eitherneverworryaboutmoney,oronlyworryafewtimesayear.ThisindicatesthatSuperstarstypicallyhaveadequateshort-termstrategiesinplace,whichallowthemtofocusonlong-termgoals.

Themajorityhavetheirlong-termgoalsplanned,with60%havingadocumentedestateplan,and90%havingaretirementsavingsplan.Inaddition,94%havespecificfinancialgoals,andalmostallhaveprivatehealthinsuranceandlifeinsurance14.

Theserespondentshavegoodfinancialhabitsthattheyregularlyimplement,includingresearch,monitoringinvestmentsandspending,aswellasregularlyreviewingarrangementssuchasestateplans.ThemajorityoftheSuperstarshaveadedicatedfinancialadviser(56.6%)significantlyhigherthananyotherwellnessband.

1399%1495.2%and91.6%respectively.

0

25

50

75

100BudgeBngandExpense

SuperannuaBon


Planning


50.9

29.4

16.2

6.43.6

32.5

26.8 28.2

15.5

3.6

12.4

25.0

18.6 18.9

12.0

4.1

16.0

28.734.4

30.1

0.02.8

8.2

24.8

50.6

0

20

40

60


OnthewaytoWellness


%

Howocendoyouworryaboutmoney?

Daily Weekly Monthly FewBmesayear Rarely/never

Components of Wellness Budgeting Budgetingisascoremostofthewellnessbandsperformedwellin,withonlythefinanciallyunwellhavingamajorityofpeoplescoringbelow45inthissection.Thereisaclearimprovementfromonewellnessbandtothenext.Thissuggeststhatbudgetingactsasa“tickettoplay”,asitactsasabarrierformanyfromengagingintheirfinances.

Thistranslatesintosubjectivemeasures,withthemajorityofthosewhoarefinanciallyunwellworryingaboutmoneyonadailybasis.Incomparison,thosewhoaresuperstarstypicallydonotworryaboutmoneyatall.Thisisamassiveseparatorbetweenthegroups.Whenpeopleworryaboutmoneyonadailyandweeklybasis,thisstresswillbleedintotheworkplace,causingalossinproductivitythatbusinessescannotafford.

68.0

21.1

6.40.8

31.4

63.4

51.1

31.2

3.60.6

15.5

42.6

68.0

96.4

0

25

50

75

100

FinanciallyUnwell

RoomforImprovement

OnthewaytoWellness


%

AggregatedBudgeBngScore

Below45

45to64

65andabove


Debt Management Howeachcohorthandlesdebt,andinparticular,creditcarddebt,highlightsthevastlydifferentapproachestomanagingdebt,andshedslightonthefinancialliteracyofeachgroup.Whilethosewhodonotownacreditcardwerenotassignedascorecontributingtothewellnessscore(i.e.weightwasplacedequallyonothercomponents),itisclearthatthefinanciallyunwell’sstrategytodebtmanagementistoeithernothaveacreditcard,orisnon-existent.

Thereisastarkdifferencebetweenthetwoextremes,withthemajorityofthosewhohavesuperiorfinancialwellnesspayingofftheircreditcardregularly,comparedtoonly6%ofthosewhoarefinanciallyunwell.Interestingly,whenlookingatthe“RoomforImprovement”and“OnthewaytoWellness”groups,itappearsthatwhilethesegroupsaretypicallysavingmoney,manydonotpayofftheircreditcard.

Creditcardmanagementisheavilylinkedwithfinancialliteracy,hencetheneedforeducationsurroundingcreditcardpenaltiesforthosewhoarelessfinanciallyliterate.

26.6

5.9

4.7

20.7

32.5

9.5

23.2

19.1

11.6

29.6

14.4

2.1

19.5

41.9

7.3

24.9

5.4

0.9

8.5

65.1

10.7

13.6

1.9

0.3

7.2

86.7

3.6

2.4

0 25 50 75 100

Idonotownacreditcard

Ipayoffmycreditcardinfulleverymonth

IpaiditoffinfulllastmonthbutIdon'talways

Ipaidmorethantheminimumamountlastmonth

Ipaidtheminimumamountlastmonth

Ipaidlessthantheminimumamountlastmonth

%

Howlonghasitbeensinceyoulastpaidoffyourcreditcard?

FinanciallyUnwell

RoomforImprovement

OnthewaytoWellness

FinanciallyWell

SuperiorFinancialWellness


Doyoueverstrugglemeetingyourrentormortgagepayments?

Interestingly,abrighterstoryistoldwhenlookingatmortgageorrentrepayments.Morepeopleineachgroupindicatedthattheyneverorrarelystruggletomeetmortgageorrentpayments.Thiswouldsuggestthatformanypeoplethisisoneofthefirstexpensestobeaccountedfor,eveninaverybasicbudget.

Morethanoneinfiveofthefinanciallyunwellstruggletomeettheirmortgageorrentrepaymentsatleast“reasonablyoften”.Almost10%ofthefinanciallyunwell,whorent,paymorethan50%oftheirincomeinrent,andonly9%paylessthan20%oftheirincomeinrent.Yet50%ofthosewhoareSuperstarspaylessthan20%oftheirincomeinrent.Formanyindividuals,aholisticbudgetinganddebtmanagementstrategycouldbeutilisedtoimprovetheirfinancialwellness.

44.4

33.1

13.6

5.9

3.0

62.1

30.4

4.9

1.8

0.8

79.1

18.8

1.6

0.5

90.1

9.9

98.8

1.2

0 25 50 75 100

Never

Notveryocen

Reasonablyocen

MostoftheBme

AlloftheBme

%

FinanciallyUnwell

RoomforImprovement

OnthewaytoWellness

FinanciallyWell



Financial Literacy Financialliteracyisoneofthekeydriverstofinancialwellness,andishighlycorrelatedtomostcomponentsoftheindex.Asshowninthegraphbelow,thereisaclearrelationshipbetweenfinancialliteracyandthefinalwellnessscore.Thosewhoareinthebottomtwocategoriestypicallyscorebelow45,whereasthosewhoareinthetoptwocategoriestypicallyscoreinabove65inthefinancialliteracyscore.

Clearlyfinancialliteracyiskeytomovingpeoplealongthejourneytofinancialwellness,asithassuchalargeimpactonbudgeting,debtmanagement,riskmanagementandfinancialplanningdecisions.Inaddition,financialliteracycanbeeasilyimprovedwiththehelpofanadviser,astheyareabletotakeovertime-consumingissueswithyourfinances,suchasselectingthecorrectinsuranceorformulatinganestateplan.Furthermore,theyareabletohelpexplainfinancialconceptstotheclient.

88.2

63.4

39.3

12.311.2

30.2

42.8

33.3

2.40.66.4

17.9

54.4

97.6

0

25

50

75

100

FinanciallyUnwell

RoomforImprovement

OnthewaytoWellness

FinanciallyWell


%

AggregateFinancialLiteracyScore

Below45

45to64

65andabove


Job Security Jobsecurityisanotherkeymeasureoffinancialwellness,withmanyrelyingonthe“futureincomehypothesis”fortheirpersonalfinancialsecurity.Thefutureincomehypothesisiswherethosewhomayotherwisefeelinsecureabouttheirfinancialfuture,deriveafeelingofsafetyaslongastheycancontinuetoearnanincome.Clearly,thosewhoaresuperstarshaveagreaterfeelingofsecurityintheircurrentjob,whereasthosewhoarelessfinanciallywellaremoreworriedabouttheirjobsecurity.

Howmuchjobsecuritydoyoufeelinyourcurrentwork?

Itisimportanttorecognisethatthisquestionisperceivedjobsecurity,anddoesnotextendtotheiractualjobsecurity.Employersareabletocombatpoorjobsecurityperceptionsthroughpositivereinforcementduringemployeereviews,moreregularperformancemonitoring,andimprovingoverallofficemorale.

11.2

29.0

39.1

14.8

5.9

10.3

24.2

38.1

21.9

5.4

7.3

19.5

37.2

24.9

11.1

6.1

15.5

33.1

32.0

13.3

2.4

7.2

27.7

48.2

14.5

0 15 30 45 60

IfeelveryliZlejobsecurityatall

IworryaboutjobsecuritysomeBmes

Ifeelreasonablysecureinmyjob

Ifeelverysecureinmyjob

Iamcompletelysecureinmyjob

%

FinanciallyUnwell

RoomforImprovement

OnthewaytoWellness

FinanciallyWell



Superannuation Thedistributionofthesuperannuationscorewithineachwellnessbandismoreskewedwhencomparedtothepreviouscategories.Thisistypicallybecausethelessfinanciallyliterate,andindeedthelessfinanciallywellindividualstendtoputoffmanagingtheirsuperannuationsinceitisforcedsavingsthatcanonlybeaccessedlaterinlife.

Manypeoplefindsuperannuationcomplicated,andoftendonotkeepupwithrecentchangestoregulationorlegislation.Whenthegovernmentchangesregulationforsuperannuation,manyfeelthatthegovernmentis“changingthegoalposts”ofsuperannuation,andstate“politicalrisk”asakeybarriertoadditionalcontributions.

“IdonotunderstandSuper-Ihavemovedittomybankinginstitutioninthehopethattheycan"teach"meallaboutit,howitworks,howtomakeitworkbestformeandmyretirement,butnoluckthere...”(Female,33,Financially

Unwell)

Theseperceptions,whilesometimesmisguided,highlightamajordistrustinthesuperannuationsystemthatcanbeeasedwitheducation.Clearlythosewhoaremorefinanciallywellareabletoseepastthemass-marketperceptionsofthesuperannuationsystem.Forthoseindividuals,itprovidesnotonlyabetteroutcomeinmakinguseoftaxincentivesprovidedthroughthesuperannuationsystem,butitalsoprovidesagreatersenseofwellness,whereemployeesarenotworryingaboutretirementintheworkplace.

89.9

65.2

24.7

3.510.1

30.9

58.8

42.9

3.63.9

16.5

53.6

96.4

0

25

50

75

100

FinanciallyUnwell

RoomforImprovement

OnthewaytoWellness

FinanciallyWell


%

AggregateSuperannuaBonScore

Below45

45to64

65andabove


79.2

39.5

57.5

17.7 15.3 17.5

5.1

86.0

58.4

69.5

29.234.3

30.6

12.0

90.0

71.278.3

59.455.7

51.0

21.6

94.686.3

91.2

78.9 79.6

68.2

35.3

98.892.5 95.2 91.6

85.579.5

48.1

0

25

50

75

100

Comprehensivecarinsurance

HomeandContents

Privatehealthinsurance

LifeInsurance TotalandPermanentDisabilityInsurance

IncomeProtecBon

TraumaCover

%

TypeofInsuranceHeld

FinanciallyUnwell RoomforImprovement OnthewaytoWellness


Risk Management RiskmanagementistypicallyonlydonewellbySuperstarsorthosewhoarefinanciallywell.Formanypeopleriskmanagementistoodifficult,asitinvolvesconceptsonlythosewithstrongorverystrongfinancialliteracyunderstand,ormoreimmediateissueswiththeirfinancialwellnessmeanthattheycannotattendtotheirunderinsuranceissues.

Morealarmingly,thosewhoarefinanciallyunwelldonotknowthattheyhaveinsurancesthattheymostlikelyhave.Sincetherespondentsofthesurveywereemployees,theymostlikelyhaveDeathandTPDinsuranceheldinsidesuperannuation.Thosewhoarelessfinanciallyliterateappeartoonlybeawareofgeneralandhealthinsurancepossiblybecauseitisheldoutsideofsuperannuation.Inaddition,thereisacleardifferencebetweenthefinanciallywellandsuperstarsagainstthosewhoarefinanciallyunwellandhaveroomforimprovementintermsofprivatehealthinsurance.Manywhoarelessfinanciallyliteratedonotseethevalueinpayingforprivatehealthinsurance,despitereceivinggovernmentsubsidies.Financialliteracyisthekeytosolvingtheunderinsuranceissue,asthereisaclearlinkbetweenthosewhoarelessfinanciallywell,andtheinsurancetheyhold.

95.988.9

62.1

17.9

4.110.6

32.2

43.5

31.3

0.55.6

38.7

68.7

0

25

50

75

100

FinanciallyUnwell

RoomforImprovement

OnthewaytoWellness

FinanciallyWell


%

AggregateRiskManagementScore

Below45

45to64

65andabove


Planning for the Future Planningforthefutureistheareainwhichmostpeopleperformedpoorly.Indeedalmostoneinfivesuperstarsperformedpoorlyinthissection.Settingupacompletefinancialplanforthefuturethatisregularlymonitoredisthepastpiecetofinancialwellness.Thosewhohaveachievedtheirshort-termfinancialgoalsareusuallytheonlyoneswhoareabletoplanforthefutureadequately.

Oneofthemainaspectsofplanningforthefutureisestateplanning,wheretherearekeydifferencesbetweeneachgroup.77%ofsuperstarshaveavalidwillcomparedtojust12%ofthefinanciallyunwell,similarlylessthan10%ofthefinanciallyunwellhavenominatedabeneficiaryforsuperannuation,yetalmostfourinfivesuperstarshavenominatedabeneficiary.Inaddition,60%ofthesuperstarshaveadocumentedestateplan,incomparisontononeofthefinanciallyunwellandonly4%ofthosewithroomforimprovement.

Thiscouldpossiblybeduetotheiruseoffinancialadvisers,whowillusuallywalkthemthroughtheseprocesses,whichareoftenconfusinganddifficult.Oneofthekeydifferencesbetweensuperstarsandthefinanciallywellistheirabilitytodocumenttheirfinancialgoalsandfinancialplan.Advisersusuallydocumenttheseplansaspartofafactfindand/orastatementofadvice.

98.8 95.686.6

62.4

18.1

1.2 3.910.4

22.7 24.1

0.5 3.1

14.9

57.8

0

25

50

75

100


OnthewaytoWellness


%

AggregatePlanningfortheFutureScore

Below45

45to64

65andabove


Role of the Adviser

Adviserscouldsignificantlyhelpworkplacesimprovethefinancialwellnessoftheiremployees,asateachlevelthereisaroleforafinancialadvisertoplay.Financialadviserscanhelpmovepeoplethroughtheirjourneytofinancialwellness.Infact,thereisahighcorrelationbetweenanindividual’sfinancialwellnessandtheiruseoffinancialadvisers.Morethanhalfofthesuperstarshaveadedicatedfinancialadviser,yetlessthanonepercentofthefinanciallyunwellhaveafinancialadviser.

Theproportionofthosewhousefinancialadviserssporadicallyincreasesuntiltheyarefinanciallywellthendecreases.Itappearsthatsuperstarsdonotendtheirrelationshipwiththeirfinancialadviser.Thismaybebecausetheseindividualsdidnothaveanegativeexperiencewithfinancialadvisers,andthereforekepttheirrelationshipwiththeirplanner.Oneofthemaindifferencesbetweenthosewhofinanciallywellandthosewhohavesuperiorwellnessisthatthereismuchlesssporadicuseofadvisers,implyingthatthereisalinkbetweencontinuoususeofafinancialadviserandincreasedfinancialwellness.

72.2

61.9

44.9

33.6

12.0

27.234.8

48.041.6

31.3

0.6 3.4 7.1

24.8

56.6

0

20

40

60

80


OnthewaytoWellness


%

Usageoffinancialadvisers(excludingbasicaccountancy)?

Neverusedone

Haveusedinthepastnotnow/usefromBmetoBme


Appendices

Financial Wellness Survey Demographics About CoreData


Survey

WSSA

Financial Wellness Survey


Whichofthefollowingbestdescribesyourspendinghabits?

I. IhaveadocumentedbudgetandItrackmyspendingregularlyII. Ihaveadocumentedbudget,butIdonottrackmyspendingregularlyIII. Ihaveabudget,butIhaven’twrittenitdownIV. Idonothaveabudget,butIdomybesttolivewithinmymeansV. Idonotkeepmuchtrackofmyspending

Doyoueverstruggletopayyourbills?

I. NotatallII. NotveryoftenIII. ReasonablyoftenIV. MostofthetimeV. Allofthetime

Howoftendoyouworryaboutmoney?

I. DailyII. WeeklyIII. MonthlyIV. FewtimesayearV. Rarely/never

Howmuchdoyouagreewiththefollowingstatements?

StronglyAgree Agree DisagreeStronglyDisagree

IfeelcompletelyfinanciallysecureforthefutureIsometimesfeelmyfinancesareabitoutofcontrol


Howmuchofyournetincomewouldyouestimateyousaveeachpaycycle(afterpayingyourmortgage,rentandotherlivingexpenses)?

(HELPBOX:Additionalmortgagecontributions,concessionalcontributionstosuperannuation(salarysacrifice)andadditionalcontributionstootherinvestmentvehiclesareclassifiedassavings.Netincomeistheincomeyoureceiveaftersuperannuationcontributionsandincometax.)

I. IspendmorethanIearnII. NothingIII. Lessthan10%IV. 10%-20%V. Morethan20%

Howlonghasitbeensinceyoulastpaidoffyourcreditcardinfull?

I. Ialwayspayoffmycreditcard/IdonotownacreditcardII. Ialwayspayoffmycreditcard,butsometimesIoverspendIII. Iamuptodatenow,butIdonotalwayspayoffmycreditcardeachmonthIV. Ihaven’tpaidoffmycreditcardinfulllastmonthV. Ihaven’tpaidoffmycreditcardinfullforthelastthreemonthsormore

Howwouldyoubestclassifyyourhomeownershipstatus?

I. NotcurrentlylookingtobeahomeownerII. CurrentlycommittedtosavingforadepositIII. HaveboughtahomeanddonotexpecttopayitoffwithintenyearsIV. HaveboughtahomeandexpecttopayitoffwithintenyearsV. Haveboughtahomeandpaiditoff

(AskifansweredIorIItoquestion3)

Howmuchofyournetincomewouldyouestimateyouspendonrenteverymonthonaverage?

I. None II. Lessthan20%III. 21%-35%IV. 36%-50%V. Morethan50%


Doyoueverstrugglemeetingyourrentormortgagepayments?

I. NeverII. NotveryoftenIII. ReasonablyoftenIV. MostofthetimeV. Allofthetime

Whichofthefollowingbestdescribesyoursupercontributionsinthelast12months?

i. Nocontributionsii. Sporadiccontributions(i.e.notconsistentoverthelastyear)iii. Regularemployerguaranteedcontributions(compulsorysuperannuation)iv. CompulsorysuperANDsalarysacrificing(concessionalcontributions)v. Compulsorysuper,concessionalcontributionsANDaftertaxcontributions(non-

concessionalcontributions)vi. Noneofthese(specify)



ImayhavetokeepworkingpastretirementagetofundmyretirementIfeelIamontracktohaveenoughmoneyforaretirementI’llbehappywithImightnotbeabletoaffordtolivewhereIwantwhenIretire

Ifyouweretoretireat65,howwouldyoudescribeyourretirementifyoumaintainedyourcurrentlevelofsavings?

Luxurious–IwillhaveplentyofmoneytodoeverythingthatIwantinretirementComfortable–IwillhaveenoughmoneytoliveverycomfortablywithoutgoingtoocrazyModest–IwillhaveareasonablelifestyleAdequate–Iwouldhavetomakequiteafewsacrificesinordertoretireby65Unsure–IdonotthinkIwillbeabletoretireat65,andwouldhavetorelyongovernmentassistance


Whichofthefollowingbestdescribesyourcurrentsuperbalance?

I. IknowmysuperbalanceasIcheckeditinthelastmonthII. Iknowmysuperbalancetothenearest$1,000III. IknowtheapproximatebalanceofmysuperIV. IhaveavagueideaofmybalanceV. Ihavenoideawhatmybalanceis



IsometimesworryaboutwhatIwoulddoifmypartnerorIlostmyjob/wasnotabletoworkIfeelIhaveenoughemergencymoneyputawayfora‘rainyday’ifneededIsometimesworryabouthavingunexpectedhealthcarecostsformyselforfamilyIsometimesworryaboutwhatmyfamilywoulddoifsomethinghappenedtome

Howmuchjobsecuritydoyoufeelinyourcurrentwork?

I. IfeelverylittlejobsecurityatallII. IworryaboutjobsecuritysometimesIII. IfeelreasonablysecureinmyjobIV. IfeelverysecureinmyjobV. Iamcompletelysecureinmyjob

Whichofthefollowingwouldyourelyon,ifyouweresuddenlytobeunemployed/unabletoworkformorethan3months?(Multipleresponsesallowed)

I. IhavesalarycontinuanceinsuranceII. IhaveemergencyfundssetasideIII. Ihaveaccruedannualleave/longserviceleaveIV. IwoulddrawdownonmymortgageortakeoutaloanV. IwouldrelyonfamilyorfriendsVI. I’mnotsure

(AskifI,II,IIIorIVabove)

Howlongwouldyouestimateyouarecoveredforintheeventyouareunabletowork?

I. UptoamonthII. UptothreemonthsIII. UptosixmonthsIV. UptoayearV. Morethanayear


Whatbestdescribeshowyoufeelaboutyourlifeinsurancecoverforyourselfandyourpartner?

I. Idon’thaveanyII. I’mnotsureifIhaveanyorhowmuchIII. IhavecoverbutnotcompletelysureitisenoughformyneedsIV. IhavenottakenprofessionaladvicebutamconfidentIhavesufficientcover

formyneedsV. Ihavetakenprofessionaladviceaboutmyinsuranceneeds

Doyouhavethefollowingtypesofinsurancecover?

Yes No N/A

ComprehensivecarinsuranceHomeandContentsPrivatehealthinsuranceLifeInsuranceTotalandPermanentDisabilityInsuranceIncomeProtectionTraumaCover

Whichofthefollowingdependentsdoyouhave?

Partner(includingex-partnerswhorelyonyoufinancially)ChildrenOtherfamily(e.g.parents,aunts/unclesorsiblingsetc.)Other(specify)(HELPBOX:Adependentisafamilymemberwhoissupportedbyyourincomeorrequiresyoutocompleteunpaiddomesticduties.)

Howregularlydoyoutendtomonitoryourfinances?

I. Veryregularly(Atleastonceaweek)II. Regularly(Atleastonceamonth)III. Somewhatregularly(Atleastonceaquarter)IV. IntermittentlywhentriggeredbyafinancialconcernV. Veryrarelyornever


Howoftendoyouresearchinformationtoassistwithfinancialdecision-making?

I. Veryregularly(Atleastonceaweek)II. Regularly(Atleastonceamonth)III. Somewhatregularly(Atleastonceaquarter)IV. IntermittentlywhentriggeredbyafinancialconcernV. Veryrarelyornever

Howwouldyourateyourfinancialknowledge?

I. VeryPoorII. PoorIII. AboutaverageIV. StrongV. Verystrong

Whichofthefollowingstatementsbestdescribesyourconfidenceinmakingfinancialdecisions?

I. IavoidmakingthemorrelyheavilyonotherstomakethemformeII. IamonlyconfidentinmakingsomefinancialdecisionsIII. IamreasonablyconfidentinmakingmostfinancialdecisionsIV. IamveryconfidentinmakingmostfinancialdecisionsV. Iamextremelyconfidentinmakinganyfinancialdecision

Whichofthefollowingstatementsbestdescribesyourattitudetobuildingyourfinancialknowledge?

I. IamnotreallyinterestedinbuildingmyfinancialknowledgeII. Iwouldliketobuildmyfinancialknowledgebutit’shardtofindthe

opportunityIII. IamcurrentlytryingtobuildmyfinancialknowledgeIV. IfeelIhaveastrongfinancialknowledgewhichIkeepupdatedV. Ihaveaprofessionaladviserwhoprovidesfinancialknowledgeandsupports

mydecisionmaking


Doyouhaveanyfinancialgoals?

I. NotreallyII. Yes,somevagueonesIII. Yes,andIhaverealistictimeframestoachievethemIV. Yes,andIhaveadocumentedplantoachievethemwhichIamadheringtoV. Yes,andIhavereceivedprofessionaladvicetoputaformalfinancialplanin

place

Whichofthefollowingistrue?

No Yes,butnotdocumented Yesanddocumented

IhaveariskmanagementplanIhaveaformalretirementsavingplanIhaveawilland/orestateplaninplaceIhaveanaged/healthcareplanformyselfand/orfamily

Whatbestdescribesyourusageoffinancialadvisers(excludingbasicaccountancy)?

I. NeverusedoneandwouldnotconsideritII. NeverusedonebutwouldconsideritIII. HaveusedinthepastbutnotnowIV. UsefromtimetotimeV. Haveadedicatedadviser

Whichofthefollowingaspectsofestateplanninghaveyouputinplace?

EnduringGuardianship

EnduringPowerofAttorney

NominatedaBeneficiaryforSuperannuation

Haveavalidwill

Reviewedyourestateplaninthepastfiveyears?


Demographic

1. Iam…a. Femaleb. Male

2. Howoldareyou?

Iam___yearsold

3. WhichStateorTerritorydoyoulivein?a. ACTb. NSWc. NTd. QLDe. SAf. TASg. VICh. WAi. OutsideAustralia

4. Ilivein:a. Thecapitalcityofmystate/territoryb. Aregionalcentrec. Aruralarea

5. Pleaseenteryourpostcode:________

6. Whatisthehighestlevelofeducationyouhaveobtained?a. Primaryb. Partofhighschoolc. Completedhighschoold. Diplomaorcertificatequalificatione. Degreequalificationf. Postgraduatequalification

7. Pleaseindicateyourcurrentmaritalstatus:a. Singleb. Livingwithpartner/marriedc. Separated/divorced/widowedd. Other(specify)


8. Whichofthefollowingindustriesbestdescribestheoneyoumostlyworkin?a. Agriculture,forestryandfishingb. Miningc. Manufacturingd. Electricity,gas,waterandwasteservicese. Constructionf. Wholesaletradeg. Retailtradeh. Accommodationandfoodservicesi. Transportpostalandwarehousingj. Informationmediaandtelecommunicationsk. Financialandinsuranceservicesl. Rental,hiringandrealestateservicesm. Professionalscientificandtechnicalservicesn. Administrativeandsupportserviceso. Publicadministrationandsafetyp. Educationandtrainingq. Healthcareandsocialassistancer. Artsandrecreationservicess. Other(pleasespecify)

9. Whichofthefollowingbestdescribestheoccupationyoumostlyworkin?

a. Businessownerb. Managerc. Professionald. Techniciane. Tradesworkerf. Communityandpersonserviceworkerg. Clericalandadministrativeworkerh. Salesworkeri. Machineryoperatorsanddriverj. Labourerk. Other(pleasespecify)


10. Whichofthefollowingbestdescribesthepaymentarrangementsoftheoccupationyoumostlyworkin?

a. Unpaidvoluntaryworkerb. Unpaidtrainee/workplacementc. Contractor/Subcontractord. OwnBusiness/Partnershipe. Commissiononlyf. Commissionwithretainerg. Inafamilybusinesswithoutpayh. Paymentinkindi. Paidbythepiece/itemproducedj. Wage/salaryearnerk. Other(pleasespecify)

11. Pleasetellustheapproximatesizeofyourhousehold'sinvestment(sellable)assets(excludingyourhomeandsuperannuation).

I. IhavenoinvestmentsII. Lessthan$50,000III. $50,001to$150,000IV. $150,001to$450,000V. $450,001to$750,000VI. Morethan$750,000VII. Notsure

12. PleasetellustheapproximatesizeofyourpersonalSuperannuationbalance?

I. IhavenosuperannuationII. Lessthan$50,000III. $50,001to$100,000IV. $100,001to$200,000V. $200,001to$450,000VI. $450,001to$750,000VII. $750,000to$1.5millionVIII. Morethan$1.5millionIX. NotSure


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