Why it’s a mixed bag
Reflecting on your financial position can be tough. And it isn’t always an attractive prospect. It’s not fun to compare your financial situation and come-up short, but the truth is knowing you’re behind (or ahead!) gives you the opportunity to take what you have and put it to use. If you don’t know where you stand you can’t know what the next right move is. As a country, Australia’s no exception to that rule. We think of ourselves as ‘the lucky country’ and in many ways we are. But like any financial introspection, when held up to scrutiny there are ups and downs across the board, one that might be familiar to you if you’ve been taking stock of your finances.
A recent joint – study by the Melbourne Institute and the Commonwealth Bank has yielded some interesting insights when it comes to the overall state of Australia’s financial wellbeing. Whilst a number of studies and metrics exist to monitor the country’s finances, this new method is unique in its intertwining of both objective research measures and individual’s perception of their situation. In other words, it’s not just how much you have, it’s what that means for your life.
The Good News?
If you’re a retiree or heading in that direction, you’re likely in a pretty good place so far as savings. The study indicated that Australians over the age of 65 had the highest rates of financial wellbeing of the country. That’s not just good news, that’s fantastic and necessary. With the average Australian living 80+ years, being prepared for a rainy day isn’t enough anymore.
Thankfully there’s plenty you can do to make your savings outlast you and even grow. With the help of your accountant and careful investment management you can make the most of your hard-earned money, ensuring there’s enough left over for you to enjoy this next phase of your life – not worry over it. But if there’s one thing we can impress upon you when it comes to retirement savings it’s this; get some help reviewing your tax position. In retirement or pre-retirement, your situation is likely to have changed. And whilst you might know the basics, there are hundreds of ways your finances have shifted that you may not have considered – all of which could be draining away your savings for no reason at all. For some more tips on how to make sure you’re prepared check out this blog!
And the Bad News?
Unfortunately, Gen-X isn’t fairing out quite so well as their Baby Boomer counterparts with the 40-49 age range reporting the lowest rates of financial wellbeing in the country. Sure, money doesn’t buy happiness, but feeling financially insecure sure doesn’t help. Of the surveyed participants one in four said their financial situation was preventing them from enjoying life and almost one third of participants said they felt controlled by their finances. This isn’t an unprecedented circumstance.
When you aren’t sure you’re prepared for the future, it’s hard to live in the moment and harder still to see a way forward. It’s easy to start thinking you’re in too deep to turn things around, but thankfully, it’s not usually the reality.
A visit to your accountant might seem daunting, but really, they’re only there to help you formulate a plan, maybe it’s a budget, maybe it’s changing a business structure to better protect the assets you do have or maybe, it’s working out a payment plan with the ATO on your behalf. Whatever it is, it’s likely to start making things easier for you financially.
Whether you’re plotting out how to make that good news last the rest of your thankfully long life or need some damage control from someone who knows how to help we’d love to talk to you. You can call us on 02 6023 1700 or drop us a note via the form below.
Got a question? Get in touch
If you've got financial or business questions, or you just want to run something by us, we'd be delighted to really talk to you – in person, over the phone - call us on 02 6023 1700 - or you can use the form below and we'll get back to you.