More than three quarters of the Australian population aged 65+ (76.2%) “feel confident about managing their finances”, this is well above the population average of 59.5% (18+). These are the latest findings from the Roy Morgan Research Finance Single Source survey.
The confidence in managing finances in the 50-64 age group drops well back to 62.0% (compared to 76.0% for 65+), while all age groups under 50 are below 55% confident. When it comes to those considering themselves to be “very confident” (i.e. “strongly agree”), the 65+ age group leads with 42.5%, compared to the population average of only 23.0%. Of some concern is the fact that less than 18% of each group under 50 “strongly agree” that they are “confident in handling their finances.”
Norman Morris, Industry Communications Director, Roy Morgan Research says:
“Australians aged under 50 are exposed to a range of financial products for the first time e.g. home loans, home insurance, superannuation, credit cards etc. and combined with the fact that they are the most leveraged group in terms of debt levels makes them generally less confident. This group is also concerned with the cost of raising a family.
“The over 65 age group however have had more experience of handling finances, have less debt and as a consequence they generally feel more confident regarding financial matters. Their major financial issue is having adequate funds for retirement and Government not adversely changing the rules.
“For all groups there appears to be a major need to improve financial literacy if people are to feel more confident in making the right financial decisions.”
Source: Roy Morgan Single Source (Australia), 12 months to December 2012, Sample size = 17,762.
Roy Morgan Research
Roy Morgan Research is Australia’s best known and longest established market research and public opinion survey company. Roy Morgan Single Source is thorough, accurate, and provides comprehensive, directly applicable information about current and future customers. It is unique in that it directs all the questions to each individual from a base survey sample of around 55,000 interviews in Australia and 15,000 interviews in New Zealand annually - the largest Single Source databases in the world. The questions asked relate to lifestyle and attitudes, media consumption habits (including TV, radio, newspapers, magazines, cinema, catalogues, pay TV and the Internet), brand and product usage, purchase intentions, retail visitations, service provider preferences, financial information and recreation and leisure activities. This lead product is supported by a nationally networked, consultancy-orientated market research capability.
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