Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 344

The link between financial and mental health

It may seem obvious that financial stress would have a direct impact on people’s health and happiness. However, new research from Fidelity International suggests that Australians are not making the link between financial health and our overall wellbeing.

Fidelity’s survey of over 2,000 Australians shows almost half of us worry about money at least weekly, with one in four worrying at least daily. And having money doesn’t necessarily make people immune from anxiety. More than a third of Australians with more than $1 million of assets to invest still worry at least monthly.

What are Australians worrying about?

We have enjoyed more than 25 years of uninterrupted economic growth and Australia has not experienced a recession since 1991. Our superannuation system is the envy of many parts of the world and most people have now been accumulating savings to fund retirement since the Superannuation Guarantee started in 1991, a healthy last 28 years ago.

Despite this, less than one in five Australians rate their financial wellbeing as high or very high. At a time when the economic outlook is starting to look more uncertain, only one in five believe they would be financially stable if they were to lose their job tomorrow, with almost three quarters saying they could only manage for a short period or not at all.

Retirement is also weighing on people’s minds. More than half of Australians feel they are not on track financially to have a retirement they are happy with. Around 50% worry they might not be able to live where they want to in their golden years and a similar number expect to have to keep working past retirement age to fund their retirement.

The adverse impacts are not only financial

Perhaps most surprising is the extent to which these sorts of financial issues affect all facets of our lives. More than half of Australians report that their mental health has been adversely impacted by financial issues, while others say their relationships and physical health have suffered.

The benefits of seeking financial advice

It’s not all bad news. The survey suggests that the picture is improved for people who seek help with their finances. While 56% worry about money at least monthly, that number jumps to seven in 10 for those who do not receive financial advice.

Australians receiving financial advice are twice as likely to rate their level of financial wellbeing as high or very high, compared to those who are not receiving advice. And when asked how prepared they feel for retirement, 64% of people who are advised say they are either ‘very’ or ‘reasonably’ prepared, compared to just 26% of unadvised people.

Perhaps the most compelling finding was in relation to people’s overall wellbeing, 50% of Australians receiving financial advice say their mental health has improved as a result of advice, while 38% reported their family life is better.

So with so many people reporting the benefits of financial advice, why aren’t more people accessing it? Last year’s Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, which revealed practices that fell well short of the community’s expectations, could be one reason. However, the survey shows it isn’t the main deterrent.

A recurring theme among those who have never sought advice is they don’t believe they can afford it or they don’t believe their circumstances justify the need. And when people do seek advice, it is usually around a life event or milestone. Nearly a third of people first sought financial advice because they were approaching retirement, followed by a property purchase.

Don’t wait for the financial trigger

The problem with this that by waiting for a trigger such as retirement to seek help, we may not be giving ourselves the best chance of being in control of our futures. It is only by starting the discussion early and making a plan that we will have control over when we retire, how much we will retire with and what our lives will look like after we retire.

And this is backed up by our survey. While around 26% of people overall say they are not prepared at all for retirement, that number drops to just 10% for those who are advised. And those people who have an adviser also about the positives for their overall quality of life. These include being able to live their desired lifestyle, not having to worry about money and improved mental health.

While much of the discussion around the benefits of financial advice focuses on the amount of assets we have or the financial returns that can be achieved, our research demonstrates the wider benefits and peace of mind it can provide. People who seek advice often leave with a much stronger sense of wellbeing and control over their future and that’s something we can all benefit from.

 

Alva Devoy is Managing Director, Australia at Fidelity International, a sponsor of Firstlinks. This document is issued by FIL Responsible Entity (Australia) Limited ABN 33 148 059 009, AFSL 409340 (‘Fidelity Australia’), a member of the FIL Limited group of companies commonly known as Fidelity International. This document is intended as general information only. You should consider the relevant Product Disclosure Statement available on our website www.fidelity.com.au.

For more articles and papers from Fidelity, please click here.

© 2019 FIL Responsible Entity (Australia) Limited. Fidelity, Fidelity International and the Fidelity International logo and F symbol are trademarks of FIL Limited. FD18634.

 

  •   12 February 2020
  • 1
  •      
  •   

RELATED ARTICLES

Work still needed to close the financial gender gap

Lucy Brogden on the link between mental and financial health

What do investors value in financial advice?

banner

Most viewed in recent weeks

The growing debt burden of retiring Australians

More Australians are retiring with larger mortgages and less super. This paper explores how unlocking housing wealth can help ease the nation’s growing retirement cashflow crunch.

Warren Buffett's final lesson

I’ve long seen Buffett as a flawed genius: a great investor though a man with shortcomings. With his final letter to Berkshire shareholders, I reflect on how my views of Buffett have changed and the legacy he leaves.

LICs vs ETFs – which perform best?

With investor sentiment shifting and ETFs surging ahead, we pit Australia’s biggest LICs against their ETF rivals to see which delivers better returns over the short and long term. The results are revealing.

Family trusts: Are they still worth it?

Family trusts remain a core structure for wealth management, but rising ATO scrutiny and complex compliance raise questions about their ongoing value. Are the benefits still worth the administrative burden?

13 ways to save money on your tax - legally

Thoughtful tax planning is a cornerstone of successful investing. This highlights 13 legal ways that you can reduce tax, preserve capital, and enhance long-term wealth across super, property, and shares.

Why it’s time to ditch the retirement journey

Retirement isn’t a clean financial arc. Income shocks, health costs and family pressures hit at random, exposing the limits of age-based planning and the myth of a predictable “retirement journey".

Latest Updates

Weekly Editorial

Welcome to Firstlinks Edition 639

Thank you for the hundreds of responses to our Reader Survey and to maximise the sample size, we’re leaving it open until this Sunday. Here is an overview of the results so far.

  • 27 November 2025
  • 1
Investment strategies

Where to hide in the ‘everything bubble’

It might not be quite an ‘everything bubble’ but there’s froth in many assets, not just US stocks, right now. It might be time to stress test your portfolio and consider assets that could offer you shelter if trouble is coming.

Investment strategies

The ultimate investing hack: dividend growth stocks

Investors often fall prey to ‘amygdala hijacks,’ letting emotion trump reason. By focusing on dividend-growth with stocks instead of volatile prices, you can steady your mindset and let compounding do the work. 

Investment strategies

CBA or global banks?

CBA’s recent pullback highlights single-stock risk. Global banks trade at lower P/Es with rising earnings and dividends, offering investors both income potential and long-term value beyond the local market.

Investment strategies

Global dividends rising, but Australia lags

Global dividend growth surged in the third quarter, with median growth of almost 6%. Australia was a notable exception as dividends fell, thanks to flagging mining company payouts.

Economy

I called inflation's rise and fall and here's what's next

In 2020, I warned that surging US money supply growth would spark inflation. By early 2023, I said US money supply was dropping dramatically and that meant inflation would decline. Here's what happens next.

Superannuation

Are excessive super funds giving Australia “Dutch Disease”?

The irony is profound: a system designed to secure Australians’ futures may be systematically dismantling the economic diversity necessary for long-term prosperity.

Investment strategies

Could your children pass the inheritance ‘stress test’?

You devote years of your life working, saving and investing, striving to build a legacy that will outlive you. Before any wealth moves to the next generation, here are six questions every parent should ask themselves.

Sponsors

Alliances

© 2025 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.