New research has found that almost two in five Australian workers are in “dire need” of improving their financial wellbeing, with financial advisers needed to improve financial literacy, according to Workplace Super Specialists Australia (WSSA).
The research, conducted by CoreData on behalf of WSSA, found that 39 per cent of employees were categorised as either "financially unwell" or as having "room for improvement".
About 29 per cent were rated as "on the way to wellness" while 26 per cent were categorised as having "financial wellness" and 6 per cent as "superstars".
“This data should be regarded as a real cry for help from everyday Australians living the day-to-day reality of their financial wellness,” WSSA president Terry Rhodes said.
“It is a situation that is both stressful and costly for employees and employers.”
The research also found that a key driver of financial wellness was the individual’s financial literacy. More than half of those found to be ‘financially unwell’ had poor or very poor financial literacy, while 93 per cent of ‘superstars’ had strong literacy.
Mr Rhodes said this is where financial advisers can play a role.
“This research highlights the strong link between financial literacy and financial wellness and we know that financial advisers can make a huge different to financial literacy,” Mr Rhodes said.
“There is a huge opportunity for employers and financial advisers to have a positive impact on the financial wellbeing of their employees through engagement programs that build knowledge, help them achieve their goals, [and] are relevant and affordable.”
Several firms have been impacted by the corporate regulator’s action.
Super funds must now have a retirement income strategy in place.
Vanguard has called for a complete overhaul of the advice industry.
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