Consumers lack financial confidence: Roy Morgan

According to research released by Roy Morgan’s Consumer Single Source survey of 50,000 Australians, 52.5 per cent of consumers are confident about managing their finances, with 30.5 per cent indicating the lack of confidence stems from never taking taken the “time to understand how financial products work”.

Roy Morgan spokesperson Norman Morris said the findings indicate a growing need for financial advice services.

“With one quarter to one third of the population across all the segments not spending time to understand how financial products work, there is an opportunity for financial institutions and government bodies to engage people in furthering their education, simplifying products and making less frequent legislative and product changes,” Mr Morris said.

“A wider spread use of financial advisers and planners beyond investment purchases would also be valuable.
“Financial confidence can be improved through a better understanding of how finance products work and choosing the best products to suit individual needs.”