New findings released by TAL have shed light on Australians' evolving perceptions regarding the intricate relationship between financial health and overall wellbeing.
According to the research, a significant majority of Australians (56%) acknowledged the pivotal role financial health plays in shaping their general wellbeing, with six out of 10 individuals indicating heightened awareness of their financial standing compared to a year ago.
The survey underscored the interconnectedness of financial, physical, and mental health, with 58% of respondents acknowledging the impact of financial health on mental wellbeing and 47% on physical wellbeing. Notably, a staggering 90% of individuals classified as having poor financial health report experiencing adverse effects on their mental wellbeing due to financial stress.
While the research revealed a concerning trend of declining financial health, with the proportion of individuals in poor financial health doubling since 2021 (from 11% to 20%), it also highlighted the potential benefits of financial engagement on mental and physical wellbeing.
However, paradoxically, individuals with poor financial health demonstrated the lowest levels of financial engagement, with only one in five indicating a high level of involvement with their finances.
Dr Priya Chagan, general manager of health services at TAL, emphasised the importance of recognising the interdependence of financial, mental, and physical health.
“Many Australians know that when they take care of their physical and mental health, they can make better decisions, which include important decisions on personal finances,” she said. “This research shows that taking small steps to understand, improve, and take control of financial health can have a positive impact on overall wellbeing.”
The research also shed light on the sources of financial information relied upon by Australians.
Notably, nearly four in 10 individuals turn to friends and family (39%) as their primary source of financial advice, followed closely by banks and online financial tools, each at 37%.
However, concerning findings revealed that 21% of respondents lack any source of financial information.
This reliance on informal sources is particularly pronounced among young Australians aged 18-29, with over half (56%) seeking financial advice from friends and family.
Commenting on the research findings, senior financial adviser Cara Williams stressed the importance of financial engagement and literacy in achieving long-term financial goals, especially amidst rising living costs.
“Young people are increasingly understanding the importance of improving their financial health and literacy, particularly when so many Australians are facing cost of living pressures,” she said. “It is so common that clients initially reach out feeling overwhelmed when making decisions, with competing priorities and too many options available to them. Seeking out professional advice can help them clarify their goals and priorities, and then assess the options and strategies appropriate for their personal situation.
“Even if your finances aren't where you'd like or need them to be, taking small steps now can have a big payoff down the track – the earlier you start, the better.”
In other news, TAL added a new member to its executive team in January.
