The Connection Between Financial Wellbeing and Mental Health

You might have heard that regular exercise, quality sleep and a healthy diet can help improve mental health. But what about the link between financial wellbeing and mental health?

For many, thinking about their finances, both now and into retirement, can be stressful.  

A 2022 report by Beyond Blue and ASIC found 14 per cent of Australian adults experienced both financial hardship and mental health symptoms, with people experiencing financial challenges twice as likely to be experiencing mental health challenges, when compared to those not experiencing financial challenges[1].

Mental health in retirement is also important, especially as people transition to a new stage in life. 

The Retirement Confidence Index 2022 AustralianSuper and Monash University, looks at how Australians feel about retirement. In 2022 the average retirement confidence score was 66 out of 100[2], based on answers to questions around financial awareness, wellbeing, social factors and retirement planning.

The results showed that women were less confident about their retirement when compared to men. When it came to financial literacy women scored 57 out of 100, compared to 72 for men2. Women with lower levels of financial knowledge also experienced more financial anxiety.

The study also found that your financial position is just one part of the puzzle. Good mental and physical health, social connections and setting goals are also key factors in feeling good about retirement.

Feel more confident about your finances
A better understanding of financial literacy can be a positive step in reducing the stress around money, both in your working life and retirement. These AustralianSuper resources may help:

• ‘Money101’ self-paced learning This interactive online learning resource helps you learn more about managing your money, super, retirement and wellbeing. To get started visit australiansuper.money101.com.au.
• ‘Education sessions for members and non-members at no additional cost Making the best decisions about your super and retirement comes from having the best information to suit your needs. Our experienced education team aims to help you learn about a range of super and retirement topics.

Mental health and the workplace
Employers can also play an important role in their employees’ mental health. Understanding the many ways to support the positive mental health of all employees can help an organisation succeed. 

SuperFriend is a mental health not-for-profit helping to make a positive difference for workplaces. In addition to research and advocacy work, they assist organisations with training and tools designed to manage mental health in the workplace. The SuperFriend website has guides and articles to support your workplace and employees³.

For more helpful financial wellbeing tools and advice visit: https://www.australiansuper.com/tools-and-advice?utm_medium=web&utm_source=article&utm_campaign=intermediary|join|fy25|q2|october

[1] Beyond Blue, ‘Money and mental health - Social research report – executive summary AUGUST 2022’

2 The 2022 AustralianSuper Monash University Retirement Confidence Index. Based on answers from approximately 3,000 people aged 50 and over. Retirement scores are compared to the Australian average, estimated from the key socio-demographic variables captured in the study.

³ The products or services being advertised are provided by SuperFriend not AustralianSuper. AustralianSuper may invest in SuperFriend but doesn’t receive any payments or commissions from this organisation if members use the products and services. Members should make their own assessment and seek professional advice about the suitability of these products or services for their individual needs.

This information may be general financial advice which doesn’t take into account your personal objectives, financial situation or needs. Before making a decision about AustralianSuper, you should think about your financial requirements and refer to the relevant Product Disclosure Statement available at australiansuper.com/pds or by calling 1300 300 273. A Target Market Determination (TMD) is a document that outlines the target market a product has been designed for. Find the TMDs at australiansuper.com/tmd.

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