Time for a check-up? The importance of financial wellness
We all know about physical wellness, but what about financial wellness? Just like the physical version, financial wellness occurs when vital elements — in this case income, expenditure and savings — are all in good shape, and we can meet the needs of our lifestyle without pressure or strain.
Being financially well means the ability to manage short-term finances, like bills, rent and groceries, while also saving for long-term goals, like a holiday or a home renovation. Importantly, financial wellness means feeling in control of your money.
In a time of slow wage growth and rising living costs, it has never been more important to achieve and maintain financial wellness. A recent consumer behaviour survey by the National Australia Bank found financial stress was the leading cause of anxiety for Australians, with one in two Australians aged between 18 and 49 affected by some form of financial hardship in the last three years [1].
But financial ill-health isn’t just experienced at the individual level. Research by PwC found that financial pressures were one of the key causes of workplace stress for 46 per cent of participants, with the study also finding that employees experiencing stress were less productive than those who were at ease [2].
Over time, workers undergoing financial stress experienced more frequent distraction, and higher rates of absenteeism and underperformance at work. For employers, this level of employee disengagement often leads to a negative shift in morale and workplace culture, as well as an unfavourable impact on the business’ bottom line.
Given the current financial climate, it’s unsurprising that longer term financial considerations like superannuation are the last thing on many Australian’s minds. Amidst the rising cost of everyday living, most people would prefer to leave super contributions in the hands of their employer, rather than make voluntary contributions themselves.
Yet, according to the Association of Superannuation Funds of Australia (ASFA), the average Australian is set to retire with around just $200,000 in super – less than half of what ASFA recommends for a comfortable retirement [3].
And the situation is even more dire for women. Due to the fact that women are more likely to work in lower-income or part-time roles, and more frequently take time out of the workforce to care for children, many Australian women will retire with less than a quarter of the recommended super balance at retirement.
Achieving financial wellness while also improving Australians’ retirement prospects isn’t an easy fix. When so many people are struggling to cover everyday costs, asking them to salary sacrifice or make voluntary contributions to their super can be impractical.
This is where SUPERSUPER™ is different. Instead of asking super fund members to give up their daily coffee or skip that new restaurant, SUPERSUPER rewards members for the things they’re already spending on – whether it be groceries, petrol, school supplies or movie tickets.
SUPERSUPER is a shop-and-save-super program, recently developed by GuildSuper, to deliver their members a tangible way to put more money into their super, every day, without the money coming out of their pocket.
With a huge range of popular retailers on board, GuildSuper members can use SUPERSUPER for almost all of their everyday spending, with a percentage of each purchase going directly toward their super. The program means members can top up their super every time they shop, without having to lock away their own hard-earned funds.
SUPERSUPER is also highly beneficial for business owners. In addition to using the program to help boost their own super, by informing their employees about SUPERSUPER and its benefits, employers can help to alleviate some of the stress their staff may feel in relation to their finances and future. As a result, employees feel less stressed, better supported by their employer, and ultimately happier and more motivated at work. This in turn helps to boost productivity and the business’ bottom line.
Just like physical wellness, financial wellness can be tricky to achieve and maintain, but the benefits reach far beyond being able to treat ourselves come pay day. When we feel comfortable and in control of our finances, we’re less stressed, we’re happier and we’re better performers in all aspects of our lives. As an employer, wouldn’t you prefer this version of your employee turning up to work every day?
Anyone can join GuildSuper to access the SUPERSUPER program – which is offered free as a part of fund membership. To learn more, visit supersuper.com.au or check out facebook.com/supersuperau
Guild Trustee Services Pty Ltd. ABN 84 068 826 728. AFSL 233815. RSE License Number L0000611. Trustee for the Guild Retirement Fund ABN 22 599 554 834 (which includes GuildSuper). Before acting on any information, you should consider whether GuildSuper is right for you by reading the Product Disclosure Statement at guildsuper.com.au.
[1] NAB Consumer Behaviour Survey, Q3 2018
[2] PwC 2018 Employee Financial Wellness Survey, 2018
[3] Association of Superannuation Funds of Australia, ASFA Retirement Standard, 2018
Guild Super are proud sponsors of the Australian Fitness Awards 2019
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