Financial security or financial struggle?

Whether buying or selling a home, choosing a super fund or retiring, a little knowledge can mean the difference between financial security and financially struggling later on in life, according to seniors lobby group for the over 50s, National Seniors Australia.

In a submission to financial services watchdog, The Australian Investments and Securities Commission (ASIC), National Seniors recently called for a coordinated financial literacy awareness campaign, with particular focus on older Australians and groups who may be disadvantaged.

National Seniors chief executive, Michael O’Neill, claims a government funded awareness campaign may also reap long term benefits for Australia’s economy if people were better able to make informed decisions about various financial products and the levels of risk they face.

National Seniors’ research has shown more than half of respondents to a survey of its members were poorly informed about the kind of investments most likely to maximise returns and minimise risks over a year.

“While it is difficult to predict market downturns, knowledge is power and Australians could empower themselves if they knew more about how their money is invested,” Mr O’Neill says.

“That means public education and awareness from unbiased professionals is needed – both for those approaching retirement and for younger people still very much in the accumulation phase of their superannuation.”

All Australians should be encouraged and provided with the opportunity to improve their financial literacy at any life stage, he adds.

Research has also shown that the overwhelming majority of consumers do not understand important features of their contracts for home loans, credit cards, store cards and car loans.