Financial procrastination costing Aussies nearly $2 billion a year

• Financial procrastination* is costing Australians nearly $2 billion ($1.96 billion*) a year, with those putting off financial tasks missing out on an estimated average of $148 each
• Six in ten (61%) Australians admit to delaying a financial chore over the past year, with checking savings account rates being the #1 procrastinated financial task (21%)
• While nearly three in four (72%) active savings account holders have checked their rate in the past year, over half (53%) have never switched savings accounts to get a better interest rate

As Australian households navigate ongoing cost-of-living pressures, new research from ING reveals financial procrastination is costing Aussies an estimated $1.96 billion nationwide each year.

Aussies who have put off financial tasks in the past 12 months report that their procrastination has put them an estimated average of $148 out of pocket per person.

With over six in ten (61%) Australians admitting to delaying or putting off a financial chore over the past year, checking savings account leads as the most procrastinated task, followed by comparing utility providers, creating a budget and renewing insurance policies.

The research highlights a significant gap between awareness and action: while a clear majority (72%) of active savings account holders have checked the interest rate on their main savings account within the last twelve months, more than half (53%) admit they have never switched savings account to secure a higher rate.

Matt Bowen, Head of Consumer & Market Insights at ING, said:

“With cost-of-living pressures weighing on households, our research shows procrastinating on financial chores is costing Aussies millions each year, as six in ten of us have put off financial chores in the past year, and the top procrastinated task being checking savings account rates.

“While most savers have checked their rate, according to our research, more than half have never switched to secure a higher one – so it’s worth knowing what rate you’re earning on your savings, because the difference between an average base rate and a higher rate could add up over the course of a year.”

The bigger picture

Financial procrastination is hitting younger Australians hardest. The average reported cost of putting off financial tasks over the past year was higher among Gen Z ($166), Millennials ($178) and Gen X ($163) compared to Baby Boomers ($71).

When it comes to barriers, Gen Z are significantly more likely than older Aussies to say not having time has forced them to delay a task (39%, compared to Gen X: 26% and Baby Boomers: 14%), as well as being unsure on where to start or forgetting their login details (10%, compared to Gen X: 4% and Baby Boomers: 3%).

Despite these hurdles, awareness remains high among younger savers. Over three in four Gen Z (76%) and two in three Millennials (66%) say they have at least a rough idea of the interest rate they earn on their main savings account, compared to 59% of Gen X and 53% of Baby Boomers. However, overall, only 20% of Australians know their exact savings interest rate.

Matt’s top tips for beating financial procrastination

With millions left on the table each year, Matt Bowen shares his top tips for overcoming inaction and making your money work harder:

• Know your exact number: Relying on a rough idea of your interest rate could be costing you. Log into your banking app today to check your exact return, then consider comparing it against market leaders to calculate your potential annual boost.
• Set time aside to do the admin: Lost passwords or the perceived hassle of setting up a new account can be easy reasons to put it off, but the process can often be relatively quick and straightforward.

• Turn awareness into action: Knowing your current rate is a helpful first step, and taking a look at the competitive rates and rewards available can help you understand your options. For instance, when it comes to the ING Savings Booster, new to ING savings customers can earn up to 6.25% p.a. variable rate on balances up to $500,000 for the first four months when they grow their balance by $100 or more by the end of each month.