Two-thirds of Aussies lack confidence in managing finances: Survey

New research from MLC has revealed that just 34% of Australians feel confident in managing their finances, with women and Gen Xs found to be notably less financially assured than their counterparts.

Around one in five (39%) survey respondents stated they had at least limited confidence in their financial health, the research by MLC and pollster McCrindle revealed, with around one in 10 expressing a total lack of confidence in handling financial matters.

Confidence was relatively low amongst middle-aged ‘Gen X’ Australians (aged between 46-60), with just under a third (29%) describing themselves as financially confident.

Millennial Australians (those between the ages of 31 and 45) and Boomers (ages 61-79) appeared the most financially assured.

Women were also far less likely to describe themselves as financially confident versus men (29% for the former compared to 39% for the latter).

Among the biggest inhibitors to individuals’ financial confidence was in finding the right support.

Just over one third (35%) said the use of online tools and calculators would boost their confidence, while a further third (34%) said online education and guidance would do so.

Maintaining a budget (46%) offered, by far, the greatest source of financial clarity and confidence for Australians of all ages.

As well, maintaining a retirement plan (35%), visibility over expenses (29%) and creating an investment plan (28%) were seen as the best means for individuals to boost financial clarity.

However, considerably more men (34%) valued having an investment plan than women (22%).

“Everyone’s financial journey is different; whether you’re saving for a home, supporting a family or planning for retirement. But the need for financial clarity is universal,” MLC chief customer officer, Renee Howie.

“The reality is, not everyone is able to access financial advice. That’s why it’s so important to meet people where they are and provide them with relevant tools to help build their confidence and take control of their finances.”

The release of the survey comes six months after MLC’s launch of its online Money View tool – a free service to measure individuals’ current and future financial health.

The tool combines budgeting, expense tracking and goal setting with insights and financial health forecasts.

“The tool provides a real-time, holistic view of a user’s financial situation through a secure, customisable dashboard, which they can save and revisit at any time,” said Howie.