The majority of people under 50 believe financial security is vital to their long-term happiness, but many are putting their ability to earn an income at risk through ‘bad behaviour’, a survey has found.
The research, commissioned by the Financial Services Council’s life insurance awareness initiative Lifewise, found that 71% of Generation Y (aged between 16 and 31) and 66% of Generation X (aged between 32 and 47) thought their ability to earn an income was important to their long term happiness. However, many were still engaging in practices that would put that ability at risk.
The survey asked respondents whether they had participated in a range of ‘risky’ behaviours including smoking, driving while over the legal alcohol limit and other risky personal lifestyle choices. In all situations, more Gen Xs than Gen Ys had engaged in these behaviours.
By contrast, more of the younger generation (49%) were concerned that poor health behaviour would have a negative impact on their wellbeing, compared with 45% of Generation X.
Lifewise Campaign Coordinator, Holly Dorber, said: “Our research shows that Gen Ys are thinking about the importance of financial security – in fact 35% said that it would make their life happier. However, the reality is that if something were to happen and they were left unable to work, the majority would not have a financial safety net in place, with just 16% holding an income protection policy.
“That being said, only 24% of Gen Xs have an Income Protection policy and yet they are practising on a monthly, even weekly basis, bad behaviours that could impact their ability to work. Both generations could benefit from asking themselves what would happen if?”
The survey also found:
- Nearly half of Gen X-ers have accrued credit card debts of over $5,000
- 52% of Gen Y have applied for a new job in the past 12 months, compared to just over a third of Gen X
- Out of all the states, Gen Ys who live in Queensland are the most excited about the future
