Generation now: Financial wellbeing and ageing well

We are fast becoming an ageing population. This seismic shift affects all Australians, no matter which generation label you fit into, from Boomers to Gen X, Millennials and even Gen Z and Y.

This means that Australians are enjoying longer lives, better health overall and are working until later in life. Yet these benefits are not evenly shared across the population.

That’s why we need to address the complex factors which contribute to the financial capability and wellbeing of older consumers, and find solutions which help all generations be better prepared to face their financial future.

Money worry across all generations

When asked which issue is top of mind for Australians, money came up in five out of eight topics in the Australia Talks survey hosted by ABC. Money topics such as saving for retirement, affording a home, having enough money to get by, job security and providing for family are all current concerns.

Of the 54,000 Australians that responded, 62% worried about personally saving enough money for retirement, an issue only topped by concerns about climate change at 72%.

Older Australians and money

Retirement for many older Australians is a constant balancing act between superannuation, careful budgeting, and for many people without accumulated savings, reliance on the age pension.

Even if we assumed that most Boomers are living comfortably as a result of home ownership, 40 per cent of Australians aged 55-64 are actually approaching retirement still saddled with mortgage debt, or facing housing uncertainty as permanent renters, not having owned their own home through their working lives.

The question of savings

Worry about income in retirement affects all age groups. This concern is more urgent for older Australians, with a recent National Seniors Australia survey revealing that many older Australians are worried they might outlive their savings and will be unable to cover future medical costs.

The Royal Commission into Aged Care interim report highlights the need to assist individuals, families and carers understand and plan for the significant personal financial costs and government support payments required for older Australians to be securely cared for in the later stages of life.

Financial wellbeing is for all

These are the clear signposts for all Australians, no matter what age or stage of life. Existing super, savings or the pension may not be enough for a longer retirement and all consumers must take into account unexpected health and money issues along the way.

A key insight from the National Seniors Australia report ‘Who worries and why?’ is:

“Financial issues cannot be easily fixed in later life, and needs to be attended to along the life journeys.”

The bigger picture

Planning for the future is crucial for individuals and equally needs to be met with inclusive technology and positive policy responses.

Collectively we have significant challenges to address, include accessing and navigating financial services, appropriately targeted consumer products and opportunities, ensuring the right policy settings and protections are in place, making informed, confident money decisions, and knowing where to go for guidance and resources at the times they are most needed.

Investing in the future

This is why Ecstra is investing in Generation Now – for all generations to consider what ‘Financial wellbeing and ageing well’ means to them and how we can help improve the process for all. We are making grants aimed at helping older Australians build their financial wellbeing now, but also grants that prepare today’s consumers for their ageing future.

Grant round now open

Ecstra’s Financial Wellbeing and Ageing Well grants focus on pragmatic, practical assistance and resources that engage older Australians and support their financial decision making as well as consider future generational needs. Applications should address one or more of these priority areas;

Strengthening digital and financial literacy of older Australians through appropriately targeted, evidence-backed programs
Resources to encourage and promote long term financial plans before retirement age, assistance with understanding super and pension options and transition to retirement
Initiatives to inform and protect older consumers from fraud and financial abuse
Initiatives that address physical and cognitive ageing and financial decision making with individuals, their family and/or carers
Inclusive technologies that deliver accessible support, including navigating home care/retirement/aged care options
Resources supporting older consumers with complex needs

If your organisation is developing or delivering solutions to address financial wellbeing, we would like to hear from you.

Please submit an application at: www.ecstra.org.au/financial-wellbeing-and-ageing-well