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WSSAWorkplaceFinancialWellnessIndex|PAGE1WWW.COREDATA.COM.AU
WWW.COREDATA.COM.AU
Workplace Financial Wellness Index Workplace Super Special ists of Austral ia
2016
WSSAWorkplaceFinancialWellnessIndex|PAGE2WWW.COREDATA.COM.AU
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
WSSAWorkplaceFinancialWellnessIndex|PAGE3WWW.COREDATA.COM.AU
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
WSSAWorkplaceFinancialWellnessIndex|PAGE4WWW.COREDATA.COM.AU
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
WSSAWorkplaceFinancialWellnessIndex|PAGE5WWW.COREDATA.COM.AU
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
WSSAWorkplaceFinancialWellnessIndex|PAGE6WWW.COREDATA.COM.AU
FinancialWellness
Shortterm
needs
Reality
Longterm
needs
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
WSSAWorkplaceFinancialWellnessIndex|PAGE7WWW.COREDATA.COM.AU
Construction of the Index Theindexconsistsofarangeofkeycomponentssuchasbudgeting,levelofsavings,debtlevels,riskmanagementandplanningforthefuture.CoreDataselectedkeymetricsthatmeasurebothlongandshorttermfinancialneedsaswellasobjectiveandsubjectiveviewsofeachmeasure.
Theindexisscoredonarangefromzeroto100,wherezeroistheworstpossiblescoreand100isthebestpossiblescore.50isconsideredtobealevelof“moderate”wellness.
CoreDatahypothesisedthatpeople’sfinancialwellnessisnotsolelyreliantonfactorssuchasageandwealth.Financialwellnessshouldbereflectiveofeachindividual’ssituation,ratherthanameasureofwealthorconsumersentiment.
Additionally,asurveyofemployerswasruninparalleltotheIndexfieldworktomeasuretheeffectsofdifferinglevelsofwellnessintheworkplace.
WSSAWorkplaceFinancialWellnessIndex|PAGE8WWW.COREDATA.COM.AU
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
WSSAWorkplaceFinancialWellnessIndex|PAGE9WWW.COREDATA.COM.AU
What can the Employers Do? Employersarenotpowerlesswhendealingwithpoorfinancialwellnessofemployees.Thegraphbelowhighlightsthedifferencebetweentheemployerswhohaveimplementedafinancialwellnessprograminthepastyearversusthosewhohavenot.Thosewhohaveimplementedafinancialwellnessprogrambelievetheirworkplacewellnesshasimproved(60%)orremainedthesame(40%).
Howwouldyousaythefinancialwellnessofyouremployeeshaschangedoverthepast6
months?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/DramaBcally
Improved
Constant Decreased
%
Yes No
WSSAWorkplaceFinancialWellnessIndex|PAGE10WWW.COREDATA.COM.AU
Employer Interventions Create Value EmployersandEmployeesbothderivevaluefromfinancialliteracyeducationwithintheworkplace.Morethanthreeinfiveemployersbelievethevaluetoemployeesoffinancialliteracyeducationaseitherextremelyvaluableorveryvaluable.Only7%ofemployersdidnotassociateanyvalueofthistypeoftrainingfortheiremployees.
Asshownlaterinthereport,financialliteracyunderpinsfinancialwellness,asthosewhoreporthavinghigherfinancialliteracytypicallyhavestrongerfinancialplansinplace.Thefindingsfromtheindexhavehighlightedthatfinancialliteracyisakeybarriertowellness,withthosewithpoorfinancialliteracyoftenfallingdownatthesimplestaspectsoffinancialwellnesssuchasbudgetinganddebtmanagement.
Whatvaluedoyouthinkyouremployeesgetfromhelpingthemdeveloptheirfinancial
literacy?
Becauseemployersfindtheseservicesvaluable,thereisacleargapinthemarketthatcanbefilledbyfinancialplannersbeingpresentintheworkplace.RemovingthefinancialliteracybarrierfrommanyAustralianswouldprovidethemthetoolstheyneedtoimprovetheirfinancialwellness.
62.1
31.0
6.9
0
20
40
60
80
Extremelyvaluableorvery
valuable
Somewhatvaluable NotreallyvaluableorNot
valuableatall
%
WSSAWorkplaceFinancialWellnessIndex|PAGE11WWW.COREDATA.COM.AU
0%
20%
40%
60%
80%
100%
Help
members
understand
whatthey
willneedfor
reBrement
One-on-one
sessions
withthe
adviser
Insurance
advice
EducaBon
around
employee
benefits
Seminars Investment
advice
Help
members
develop
their
financial
literacy
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.
WSSAWorkplaceFinancialWellnessIndex|PAGE12WWW.COREDATA.COM.AU
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
ReBrement
planning
BudgeBng Investment
advice
Financial
literacy
programs
Payingoff
debt
Buyinga
house
Savingfor
children's
educaBon
%Yes
*Mulmpleanswersallowed
WSSAWorkplaceFinancialWellnessIndex|PAGE13WWW.COREDATA.COM.AU
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
WSSAWorkplaceFinancialWellnessIndex|PAGE14WWW.COREDATA.COM.AU
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.
WSSAWorkplaceFinancialWellnessIndex|PAGE15WWW.COREDATA.COM.AU
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
5.3
20.9
53.2
89.1
100
4.1
20.9
44.5
77.6
100
1.85.2
25.2
71.7
97.6
3.4
9.2
26.7
74.7
0
20
40
60
80
100
FinanciallyUnwell Roomfor
Improvement
Onthewayto
Wellness
FinanciallyWell SuperiorFinancial
Wellness
%
BudgeBngandExpense SuperannuaBon FinancialKnowledge
WSSAWorkplaceFinancialWellnessIndex|PAGE16WWW.COREDATA.COM.AU
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
60.3
66.6
43.5
4.83.6
11.9
21.9
54.7
95.2
0
20
40
60
80
100
FinanciallyUnwell Roomfor
Improvement
Onthewayto
Wellness
FinanciallyWell SuperiorFinancial
Wellness
%
Poororverypoor Aboutaverage Strongorverystrong
WSSAWorkplaceFinancialWellnessIndex|PAGE17WWW.COREDATA.COM.AU
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,sothereisnoobvious
distinctionbetweenmyhusbandandmyself.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
15
30
45
FinanciallyUnwell Roomfor
Improvement
Onthewayto
Wellness
FinanciallyWell SuperiorFinancial
Wellness
%
Female Male
WSSAWorkplaceFinancialWellnessIndex|PAGE18WWW.COREDATA.COM.AU
What Happens with Age? Thegraphbelowisascatterplotoftherespondents’ageagainsttheirwellnessscore.Atallagesthereisconsiderablespread,withonlyaslightaverageincreaseinwellnesswithage.Thishighlightsthatatallagesitispossibletoachievefinancialwellnessanditshowsthateventhoseapproachingretirementcanstillbefinanciallyunwell.
WellnessScorevsAge
Thisprovidesachallengetoemployersandworkplacesuperannuationadvisers,asarenostrongdemographicpredictorsoffinancialwellness.Employersneedtobeproactiveinunderstandingthechallengesthatfaceeachspecificemployee,ratherthanmakingassumptionsabouttheentireworkplace.
10
20
30
40
50
60
70
80
90
15 25 35 45 55 65 75
Wel
lnes
s S
core
Age
WSSAWorkplaceFinancialWellnessIndex|PAGE19WWW.COREDATA.COM.AU
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.
0
25
50
75
100BudgeBngandExpense
SuperannuaBon
FinancialKnowledgeRiskManagement
Planning
WSSAWorkplaceFinancialWellnessIndex|PAGE20WWW.COREDATA.COM.AU
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.
WSSAWorkplaceFinancialWellnessIndex|PAGE21WWW.COREDATA.COM.AU
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%)
0
25
50
75
100
BudgeBngand
Expense
SuperannuaBon
Financial
KnowledgeRiskManagement
Planning
WSSAWorkplaceFinancialWellnessIndex|PAGE22WWW.COREDATA.COM.AU
Manypeopleinthisgroupcouldbenefitinstantlyfromfinancialadvicesolelyfromrearrangingtheirfinances.46.1%ofpeopleindicatedthattheydidnotpayofftheircreditcardinfulllastmonth,and33.2%indicatedthattheydonotsaveanymoney.Thiswouldimplythatsomepeopleinthisgroupareputtingmoneyaside,butarenotpayingofftheircreditcardbillinfull.Affordablefinancialadvicewouldallowmanyofthesepeopletoimprovetheirfinancesdramatically,asitisclearmanypeopleinthiscohortneedasmallamountofguidancetogettheirfinancesbackontrack.
WSSAWorkplaceFinancialWellnessIndex|PAGE23WWW.COREDATA.COM.AU
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.
“Thefeesthatfinancialadviserstakearehugethereforecannotaffordtoget
theadvice…”-(Female,51,OntheWaytoWellness)
Thisgroupcouldbenefitfromfinancialadvicebygaininghelpinsettingplansforthefuture,especiallyinareasthatareeasytoputoff,suchasriskmanagement,estateplanning,andaformalretirementsavingsplan.Thisgrouphasreasonablefinancialliteracy,withthemajorityofrespondents(67%)indicatingthattheyhadaboutaveragefinancialliteracy,withanother22%indicatingtheyhadstrongorverystrongfinancialliteracy.Whilethisgroupisincontrolofsomeaspectsoftheirfinancialsituation,andmostdonotworryaboutmoneyonaweeklybasis,theystillhavealongwaytogotobetrulyfinanciallywell.
0
25
50
75
100
BudgeBngand
Expense
SuperannuaBon
FinancialKnowledgeRiskManagement
Planning
WSSAWorkplaceFinancialWellnessIndex|PAGE24WWW.COREDATA.COM.AU
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
BudgeBngand
Expense
SuperannuaBon
FinancialKnowledgeRiskManagement
Planning
WSSAWorkplaceFinancialWellnessIndex|PAGE25WWW.COREDATA.COM.AU
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
FinancialKnowledgeRiskManagement
Planning
WSSAWorkplaceFinancialWellnessIndex|PAGE26WWW.COREDATA.COM.AU
50.9
29.4
16.2
6.43.6
32.5
26.828.2
15.5
3.6
12.4
25.0
18.6 18.9
12.0
4.1
16.0
28.7
34.4
30.1
0.02.8
8.2
24.8
50.6
0
20
40
60
FinanciallyUnwell Roomfor
Improvement
Onthewayto
Wellness
FinanciallyWell SuperiorFinancial
Wellness
%
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
Financially
Unwell
Roomfor
Improvement
Onthewayto
Wellness
FinanciallyWell Superior
Financial
Wellness
%
AggregatedBudgeBngScore
Below45
45to64
65and
above
WSSAWorkplaceFinancialWellnessIndex|PAGE27WWW.COREDATA.COM.AU
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
Ipayoffmycreditcardinfull
everymonth
Ipaiditoffinfulllastmonth
butIdon'talways
Ipaidmorethantheminimum
amountlastmonth
Ipaidtheminimumamount
lastmonth
Ipaidlessthantheminimum
amountlastmonth
%
Howlonghasitbeensinceyoulastpaidoffyourcreditcard?
FinanciallyUnwell
RoomforImprovement
OnthewaytoWellness
FinanciallyWell
SuperiorFinancialWellness
WSSAWorkplaceFinancialWellnessIndex|PAGE28WWW.COREDATA.COM.AU
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
SuperiorFinancialWellness
WSSAWorkplaceFinancialWellnessIndex|PAGE29WWW.COREDATA.COM.AU
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
2.40.6
6.4
17.9
54.4
97.6
0
25
50
75
100
Financially
Unwell
Roomfor
Improvement
Onthewayto
Wellness
Financially
Well
Superior
Financial
Wellness
%
AggregateFinancialLiteracyScore
Below45
45to64
65andabove
WSSAWorkplaceFinancialWellnessIndex|PAGE30WWW.COREDATA.COM.AU
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
IfeelveryliZlejob
securityatall
Iworryaboutjobsecurity
someBmes
Ifeelreasonablysecurein
myjob
Ifeelverysecureinmy
job
Iamcompletelysecurein
myjob
%
FinanciallyUnwell
RoomforImprovement
OnthewaytoWellness
FinanciallyWell
SuperiorFinancialWellness
WSSAWorkplaceFinancialWellnessIndex|PAGE31WWW.COREDATA.COM.AU
Superannuation Thedistributionofthesuperannuationscorewithineachwellnessbandismoreskewedwhencomparedtothepreviouscategories.Thisistypicallybecausethelessfinanciallyliterate,andindeedthelessfinanciallywellindividualstendtoputoffmanagingtheirsuperannuationsinceitisforcedsavingsthatcanonlybeaccessedlaterinlife.
Manypeoplefindsuperannuationcomplicated,andoftendonotkeepupwithrecentchangestoregulationorlegislation.Whenthegovernmentchangesregulationforsuperannuation,manyfeelthatthegovernmentis“changingthegoalposts”ofsuperannuation,andstate“politicalrisk”asakeybarriertoadditionalcontributions.
“IdonotunderstandSuper-Ihavemovedittomybankinginstitutioninthe
hopethattheycan"teach"meallaboutit,howitworks,howtomakeitwork
bestformeandmyretirement,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
Financially
Unwell
Roomfor
Improvement
Onthewayto
Wellness
Financially
Well
Superior
Financial
Wellness
%
AggregateSuperannuaBonScore
Below45
45to64
65and
above
WSSAWorkplaceFinancialWellnessIndex|PAGE32WWW.COREDATA.COM.AU
79.2
39.5
57.5
17.715.3 17.5
5.1
86.0
58.4
69.5
29.234.3
30.6
12.0
90.0
71.2
78.3
59.455.7
51.0
21.6
94.6
86.391.2
78.9 79.6
68.2
35.3
98.8
92.595.2
91.6
85.5
79.5
48.1
0
25
50
75
100
Comprehensive
carinsurance
Homeand
Contents
Privatehealth
insurance
LifeInsurance Totaland
Permanent
Disability
Insurance
Income
ProtecBon
TraumaCover
%
TypeofInsuranceHeld
FinanciallyUnwell RoomforImprovement OnthewaytoWellness
FinanciallyWell SuperiorFinancialWellness
Risk Management RiskmanagementistypicallyonlydonewellbySuperstarsorthosewhoarefinanciallywell.Formanypeopleriskmanagementistoodifficult,asitinvolvesconceptsonlythosewithstrongorverystrongfinancialliteracyunderstand,ormoreimmediateissueswiththeirfinancialwellnessmeanthattheycannotattendtotheirunderinsuranceissues.
Morealarmingly,thosewhoarefinanciallyunwelldonotknowthattheyhaveinsurancesthattheymostlikelyhave.Sincetherespondentsofthesurveywereemployees,theymostlikelyhaveDeathandTPDinsuranceheldinsidesuperannuation.Thosewhoarelessfinanciallyliterateappeartoonlybeawareofgeneralandhealthinsurancepossiblybecauseitisheldoutsideofsuperannuation.Inaddition,thereisacleardifferencebetweenthefinanciallywellandsuperstarsagainstthosewhoarefinanciallyunwellandhaveroomforimprovementintermsofprivatehealthinsurance.Manywhoarelessfinanciallyliteratedonotseethevalueinpayingforprivatehealthinsurance,despitereceivinggovernmentsubsidies.Financialliteracyisthekeytosolvingtheunderinsuranceissue,asthereisaclearlinkbetweenthosewhoarelessfinanciallywell,andtheinsurancetheyhold.
95.9
88.9
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
Financially
Unwell
Roomfor
Improvement
Onthewayto
Wellness
Financially
Well
Superior
Financial
Wellness
%
AggregateRiskManagementScore
Below45
45to64
65andabove
WSSAWorkplaceFinancialWellnessIndex|PAGE33WWW.COREDATA.COM.AU
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.
98.895.6
86.6
62.4
18.1
1.23.9
10.4
22.7 24.1
0.53.1
14.9
57.8
0
25
50
75
100
FinanciallyUnwell Roomfor
Improvement
Onthewayto
Wellness
FinanciallyWell SuperiorFinancial
Wellness
%
AggregatePlanningfortheFutureScore
Below45
45to64
65andabove
WSSAWorkplaceFinancialWellnessIndex|PAGE34WWW.COREDATA.COM.AU
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
27.2
34.8
48.0
41.6
31.3
0.63.4
7.1
24.8
56.6
0
20
40
60
80
FinanciallyUnwell Roomfor
Improvement
Onthewayto
Wellness
FinanciallyWell SuperiorFinancial
Wellness
%
Usageoffinancialadvisers(excludingbasicaccountancy)?
Neverusedone
Haveusedinthepastnotnow/usefromBmeto
Bme
WSSAWorkplaceFinancialWellnessIndex|PAGE35WWW.COREDATA.COM.AU
Appendices
Financial Wellness Survey
Demographics
About CoreData
WSSAWorkplaceFinancialWellnessIndex|PAGE36WWW.COREDATA.COM.AU
Survey
WSSA
Financial Wellness Survey
WSSAWorkplaceFinancialWellnessIndex|PAGE37WWW.COREDATA.COM.AU
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
WSSAWorkplaceFinancialWellnessIndex|PAGE38WWW.COREDATA.COM.AU
Howmuchofyournetincomewouldyouestimateyousaveeachpaycycle(afterpaying
yourmortgage,rentandotherlivingexpenses)?
(HELPBOX:Additionalmortgagecontributions,concessionalcontributionstosuperannuation
(salarysacrifice)andadditionalcontributionstootherinvestmentvehiclesareclassifiedas
savings.Netincomeistheincomeyoureceiveaftersuperannuationcontributionsandincome
tax.)
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)
Howmuchofyournetincomewouldyouestimateyouspendonrenteverymonthon
average?
I. None II. Lessthan20%III. 21%-35%IV. 36%-50%V. Morethan50%
WSSAWorkplaceFinancialWellnessIndex|PAGE39WWW.COREDATA.COM.AU
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)
Howmuchdoyouagreewiththefollowingstatements?
StronglyAgree Agree DisagreeStronglyDisagree
ImayhavetokeepworkingpastretirementagetofundmyretirementIfeelIamontracktohaveenoughmoneyforaretirementI’llbehappywithImightnotbeabletoaffordtolivewhereIwantwhenIretire
Ifyouweretoretireat65,howwouldyoudescribeyourretirementifyoumaintainedyour
currentlevelofsavings?
Luxurious–IwillhaveplentyofmoneytodoeverythingthatIwantinretirementComfortable–IwillhaveenoughmoneytoliveverycomfortablywithoutgoingtoocrazyModest–IwillhaveareasonablelifestyleAdequate–Iwouldhavetomakequiteafewsacrificesinordertoretireby65Unsure–IdonotthinkIwillbeabletoretireat65,andwouldhavetorelyongovernmentassistance
WSSAWorkplaceFinancialWellnessIndex|PAGE40WWW.COREDATA.COM.AU
Whichofthefollowingbestdescribesyourcurrentsuperbalance?
I. IknowmysuperbalanceasIcheckeditinthelastmonthII. Iknowmysuperbalancetothenearest$1,000III. IknowtheapproximatebalanceofmysuperIV. IhaveavagueideaofmybalanceV. Ihavenoideawhatmybalanceis
Howmuchdoyouagreewiththefollowingstatements?
StronglyAgree Agree DisagreeStronglyDisagree
IsometimesworryaboutwhatIwoulddoifmypartnerorIlostmyjob/wasnotabletoworkIfeelIhaveenoughemergencymoneyputawayfora‘rainyday’ifneededIsometimesworryabouthavingunexpectedhealthcarecostsformyselforfamilyIsometimesworryaboutwhatmyfamilywoulddoifsomethinghappenedtome
Howmuchjobsecuritydoyoufeelinyourcurrentwork?
I. IfeelverylittlejobsecurityatallII. IworryaboutjobsecuritysometimesIII. IfeelreasonablysecureinmyjobIV. IfeelverysecureinmyjobV. Iamcompletelysecureinmyjob
Whichofthefollowingwouldyourelyon,ifyouweresuddenlytobeunemployed/unableto
workformorethan3months?(Multipleresponsesallowed)
I. IhavesalarycontinuanceinsuranceII. IhaveemergencyfundssetasideIII. Ihaveaccruedannualleave/longserviceleaveIV. IwoulddrawdownonmymortgageortakeoutaloanV. IwouldrelyonfamilyorfriendsVI. I’mnotsure
(AskifI,II,IIIorIVabove)
Howlongwouldyouestimateyouarecoveredforintheeventyouareunabletowork?
I. UptoamonthII. UptothreemonthsIII. UptosixmonthsIV. UptoayearV. Morethanayear
WSSAWorkplaceFinancialWellnessIndex|PAGE41WWW.COREDATA.COM.AU
Whatbestdescribeshowyoufeelaboutyourlifeinsurancecoverforyourselfandyour
partner?
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:Adependentisafamilymemberwhoissupportedbyyourincomeor
requiresyoutocompleteunpaiddomesticduties.)
Howregularlydoyoutendtomonitoryourfinances?
I. Veryregularly(Atleastonceaweek)II. Regularly(Atleastonceamonth)III. Somewhatregularly(Atleastonceaquarter)IV. IntermittentlywhentriggeredbyafinancialconcernV. Veryrarelyornever
WSSAWorkplaceFinancialWellnessIndex|PAGE42WWW.COREDATA.COM.AU
Howoftendoyouresearchinformationtoassistwithfinancialdecision-making?
I. Veryregularly(Atleastonceaweek)II. Regularly(Atleastonceamonth)III. Somewhatregularly(Atleastonceaquarter)IV. IntermittentlywhentriggeredbyafinancialconcernV. Veryrarelyornever
Howwouldyourateyourfinancialknowledge?
I. VeryPoorII. PoorIII. AboutaverageIV. StrongV. Verystrong
Whichofthefollowingstatementsbestdescribesyourconfidenceinmakingfinancial
decisions?
I. IavoidmakingthemorrelyheavilyonotherstomakethemformeII. IamonlyconfidentinmakingsomefinancialdecisionsIII. IamreasonablyconfidentinmakingmostfinancialdecisionsIV. IamveryconfidentinmakingmostfinancialdecisionsV. Iamextremelyconfidentinmakinganyfinancialdecision
Whichofthefollowingstatementsbestdescribesyourattitudetobuildingyourfinancial
knowledge?
I. IamnotreallyinterestedinbuildingmyfinancialknowledgeII. Iwouldliketobuildmyfinancialknowledgebutit’shardtofindthe
opportunityIII. IamcurrentlytryingtobuildmyfinancialknowledgeIV. IfeelIhaveastrongfinancialknowledgewhichIkeepupdatedV. Ihaveaprofessionaladviserwhoprovidesfinancialknowledgeandsupports
mydecisionmaking
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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?
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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)
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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)
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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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CoreDataGrouphasoperationsinAustralia,theUnitedKingdom,theUnitedStatesofAmerica,SouthAfricaandthePhilippines.Thegroup’sexpansionmeansCoreDataResearchhasthecapabilitiesandexpertisetoconductsyndicatedandbespokeresearchprojectsonsixdifferentcontinents,whilestillmaintainingthehighleveloftechnicalinsightandprofessionalismourrepeatclientsdemand.
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CoreDataResearchhasdevelopedanumberofsyndicatedbenchmarkproprietaryindexesacrossabroadrangeofbusinessareaswithinthefinancialservicesindustry.
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Theteamunderstandsthedemandandserviceaspectsofthefinancialservicesmarket.Itiscontinuouslyinthemarketthroughamixtureofconstantresearching,pollingandmysteryshoppingandprovidesin-depthresearchatlowcostandrapidexecution.Thegroupbuildsapictureofaclient’smarketfromharddata,whichallowsthemtomakeefficientdecisions,whichwillhavethebiggestimpactfortheleast,spend.
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