3 October 2018
A new national study has revealed half of Aussies believe they are not getting the best deal on four common financial products – their superannuation, mortgage, health insurance and credit cards – yet half think they are in control of their financial outcomes.
Leading financial product comparison service comparethemarket.com.au, together with Deloitte Access Economics, have released an in-depth report based on a study of 3000 Australians, to gauge what influences their financial outcomes in life by understanding the factors that drive their financial behaviour.
The Financial Consciousness Index revealed that 50 per cent of Australians are not confident they are getting the best deal on their superannuation, home loan, health insurance and credit cards – especially those earning under Australia’s average full-time wage. Twenty-eight (28) per cent know there are better deals out there but do not act on it, and 22 per cent have never compared their financial products to others in the market. The findings were fairly even across all four product types.
However, the Index also revealed that Aussies believe they are accountable for their financial circumstances. In fact, respondents mostly believe that sticking to their budget or financial plan determines their ability to meet their financial commitments (58 per cent), followed by their investment and savings choices (42 per cent), and their understanding of financial matters (35 per cent).
Depending on their income, however, Australians have differing views on what most impacts their financial future. Fifty-four (54) per cent of Australia’s higher income earners (above $160,001), believe it is their investment and savings choices, while 63 per cent of those earning below the average full-time wage believe it is sticking to a budget.
Rod Attrill, General Manager – Banking at comparethemarket.com.au, said: “The Index shows that at least half of our adult population is making poor choices across their most-relied on financial products. This could well be because we are overloaded with too much information and aren’t taking the time to understand and compare our product options. A good idea is to review household finances at least every 12 months, to make sure we are always getting the best deal. By using websites like comparethemarket.com.au, which make it easy to compare insurances, home loans, energy plans and credit cards, Aussies can avoid poor decision-making and the ‘analysis paralysis’ they experience when overloaded with information.”
How confident are Aussies about their financial product choices?
An overwhelming 55 per cent of respondents earning below $70,000 are not confident they have the best superannuation product, compared with 46 per cent of those earning $100,001-160,000 and just a third (34 per cent) of those earning $160,001-220,000.
Sixty-one (61) per cent of those earning less than $70,000 are also not confident their home loan product is the best in the market. This compares to 50 per cent of Aussies earning $100,001-160,000 and 44 per cent of those earning $160,001-220,000.
Those earning below $70,000 are also the least confident they have the best-value credit card: 53 per cent earning less than $70,000, compared with 45 per cent of those earning $100,001- $160,000 and 50 per cent of those earning $160,001-220,000.
Over half (51 per cent) of respondents earning less than $70,000 are not confident their health insurance policy is the best deal in the market, while 42 per cent of those earning $160,001-220,000 felt the same.
Comparethemarket.com.au is a comparison service that takes the hard work out of shopping around. We make it Simples for Australians to quickly and easily compare and buy insurance, energy, travel and personal finance products from a wide range of providers. Our easy-to-use comparison tool enables consumers to find products that best suit their needs and back pocket.
 The average full-time Australian adult yearly earnings are $82,482, according to ABS, ‘6302.0 – Average Weekly Earnings, Australia, May 2018’: http://www.abs.gov.au/ausstats/[email protected]/mf/6302.0