Retirement
How good is your financial literacy?
Australians have a basic understanding of finances, with their own actions mostly determining their financial outcomes. However, when it comes to financial sophistication, the average Australian falls short.
How good is your financial literacy?
Australians have a basic understanding of finances, with their own actions mostly determining their financial outcomes. However, when it comes to financial sophistication, the average Australian falls short.
Deloitte and Compare the Market’s financial consciousness index (FCI) report has found the average Australian sits in the ‘middle’, showing a degree of consciousness regarding finance.
Out of a possible score of 100, the average score of those surveyed for the report was 48 out of 100 down three points from last year.
Alarmingly, the study found that 17 per cent of Australians surveyed didn’t know that financial matters and behaviours could or would improve their financial outcomes.
On the opposite end of the spectrum, the report noted that the most financially fluent sector are taking advantage of their knowledge.
This percentage of the population (nine per cent) were considered able to actively follow broader economic policy decisions, such as interest rate changes, and were able to apply such knowledge to gauge the possible impact on their mortgages and investments.
Age matters
Whether you are young or old, you’re typically less financially conscious than those who are middle aged, according to the index.
As you get older, the report cited higher understanding of, and more confidence in the usage of, financial products and services.
Income correlates with consciousness
The amount someone earns also has an impact on an individual’s financial consciousness, according to the index.
The report found that Aussies on less than $100,000 scored nearly 20 points lower than those earning at least $190,000 a year, with scores of 43 and 63 respectively.
While it showed a correlation of wealth with consciousness, Deloitte’s study did reveal that lower income earners are some of the best budgeters because it is a ‘practical necessity’.
A glass half empty
People are relatively less confident compared to last year - both in the short and longer term.
Compared to this time last year, Australians indicated that they were worse off, when considering the perceived change in the value of their homes.
Learn more about financial literacy in this basic literacy test.
RELATED ARTICLES
About the author
About the author
Retirement Planning
Majority of Australians still unsure about their retirement prospects
A recent survey conducted by MFS Investment Management® has shed light on the ongoing uncertainty faced by many Australians regarding their retirement plans. Despite a slight increase in confidence ...Read more
Retirement Planning
Wage growth steadies as businesses navigate economic challenges
In a sign that the Australian labour market may be finding equilibrium, wage growth has stabilised this quarter, according to Employment Hero's latest data. This development comes as employers ...Read more
Retirement Planning
Simplified retirement advice: Key to overcoming behavioural biases, experts say
In a bid to enhance retirement outcomes for Australians, a recent whitepaper by Industry Fund Services, in collaboration with Challenger, has highlighted the importance of simplifying retirement ...Read more
Retirement Planning
Rest launches Retire Ready digital experience to empower members approaching retirement
Rest, one of Australia’s largest profit-to-member superannuation funds, has unveiled a new digital experience aimed at making retirement preparation simpler and more personalised for its members. Read more
Retirement Planning
New Framework Aims to Bridge Australia’s Financial Advice Gap
A ground-breaking framework introduced by the Actuaries Institute promises to revolutionise how Australians access financial support, potentially transforming the financial wellbeing of millionsRead more
Retirement Planning
The downsizer dividend: how Australia’s ageing shift will reshape property, finance and AI strategy
Downsizing is moving from a personal milestone to a system-level lever for Australia’s housing market. As policymakers court reforms and agents eye fresh listings, the real profit pools will accrue to ...Read more
Retirement Planning
Half of Australians financially insecure about retirement as AMP launches new initiative
In a significant move aimed at addressing the retirement concerns of Australians, AMP has unveiled the Retirement Confidence Pulse, a national barometer designed to gauge the financial confidence of ...Read more
Retirement Planning
North introduces Grow to expand Australia's financial advice footprint
In a bid to bridge the gap between the demand for financial advice and its accessibility, North, a prominent platform for superannuation and retirement in Australia, has launched an innovative ...Read more
Retirement Planning
Majority of Australians still unsure about their retirement prospects
A recent survey conducted by MFS Investment Management® has shed light on the ongoing uncertainty faced by many Australians regarding their retirement plans. Despite a slight increase in confidence ...Read more
Retirement Planning
Wage growth steadies as businesses navigate economic challenges
In a sign that the Australian labour market may be finding equilibrium, wage growth has stabilised this quarter, according to Employment Hero's latest data. This development comes as employers ...Read more
Retirement Planning
Simplified retirement advice: Key to overcoming behavioural biases, experts say
In a bid to enhance retirement outcomes for Australians, a recent whitepaper by Industry Fund Services, in collaboration with Challenger, has highlighted the importance of simplifying retirement ...Read more
Retirement Planning
Rest launches Retire Ready digital experience to empower members approaching retirement
Rest, one of Australia’s largest profit-to-member superannuation funds, has unveiled a new digital experience aimed at making retirement preparation simpler and more personalised for its members. Read more
Retirement Planning
New Framework Aims to Bridge Australia’s Financial Advice Gap
A ground-breaking framework introduced by the Actuaries Institute promises to revolutionise how Australians access financial support, potentially transforming the financial wellbeing of millionsRead more
Retirement Planning
The downsizer dividend: how Australia’s ageing shift will reshape property, finance and AI strategy
Downsizing is moving from a personal milestone to a system-level lever for Australia’s housing market. As policymakers court reforms and agents eye fresh listings, the real profit pools will accrue to ...Read more
Retirement Planning
Half of Australians financially insecure about retirement as AMP launches new initiative
In a significant move aimed at addressing the retirement concerns of Australians, AMP has unveiled the Retirement Confidence Pulse, a national barometer designed to gauge the financial confidence of ...Read more
Retirement Planning
North introduces Grow to expand Australia's financial advice footprint
In a bid to bridge the gap between the demand for financial advice and its accessibility, North, a prominent platform for superannuation and retirement in Australia, has launched an innovative ...Read more
