50% of Australians have no financial plan for the future
Article by Rebeccah Elley
If your finances come at the bottom of your priority list, you’re not alone as recent research by CUA has found more than half of Aussies have no financial plans in place for the future.
The study revealed two thirds of Australians aged 40-49 don't have any financial plans for the next 5-10 years. While Gen Yers aged between 25-29 were more likely to have savings plans, most of these plans were short term for things like purchasing a car and very few young people had longer term investment plans. The research also indicated Australians that do have a plan in place were more likely to be high income earners and those with a mortgage.
CUA Head of Partnership Products Ren Mazza said the results were concerning, as they revealed Australians were potentially being complacent about their finances.
Mazza said that it was particularly worrying that Australians in the later years of their working life, that only have 15-20 years until they reach retirement age, haven't got financial plans in place. “In fact, less than 1 in 10 people aged 40-49 said they had a comprehensive financial plan in place for their property, investments, insurance, savings and budget."
"It's alarming that so many Australians are failing to look ahead. Without a clear plan in place to manage their money and grow their assets, people are missing an opportunity to set themselves and their families up for a comfortable and secure future," he said.