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Super contributions lost in lack of planning
Almost half of Australians rarely or never make voluntary contributions to a superannuation plan, according to BT's Australian Financial Health Index.
The index found that while Australians want more control over their finances, they are uncertain about how to go about it, BT general manager Deanne Stewart said.
Although 41 per cent said they could meet their monthly expenses, one third were worried about their ability to do so while more than half were unable to save as much as they like.
"Surprisingly 57 per cent have no regular savings plan and this figure peaks amongst 45- to 54-year-olds, when they might expect to be at the height of their earning capacity," Stewart said.
Almost a third of Australians are living pay cheque to pay cheque while 17 per cent would struggle to find $500-1000 to deal with an emergency, the index found.
Data revealed a deep divide between those who were able to meet their monthly expenses and those barely able to meet their everyday commitments, Stewart said.
Surprisingly, the results were not dependent on the size of a person's pay packet, and high income earners were amongst those living hand to mouth.
Stewart said people were unsure of the steps needed to gain more control over their finances — only one third said they had a plan to achieve their financial goals.
"In many instances people are living in the hope that they will achieve their goals rather than planning for a fulfilling and secure future.
"This has implications on their health and lifestyle, impacting on their levels of stress, and in the longer term influencing their enjoyment in the years after they finish work," she said.
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