Australia: Millennials are financially confident but inadequately insured

| 23 Apr 2019

The majority of millennials (92%) feel confident about their future financial situation but may be unprepared for the possibility of unemployment due to injury or illness, according to new research from MetLife.

The MetLife Adviser-Client Relationship Report 2018 examined attitudes to purchasing life insurance through a financial adviser, surveying current advice customers and potentials.

The MetLife Australia research found that six in 10 (63%) millennials without an adviser and five in 10 (54%) advised millennials could only maintain their current lifestyle for a maximum of six months if they suffered illness or injury.

The study also found that millennials, people aged 18-39, were the least prepared for the possibility of being unable to work compared with other age groups. Only one in five (20%) of potentials have seriously thought about it, compared to almost one in three (29%) of their advised peers.

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Commenting on the findings, Mr Matt Lippiatt, MetLife Australia head of retail sales, said there was a clear mismatch between millennials’ level of confidence in their finances and their attitude to insurance.

“Millennials care about their life goals, they don’t care about insurance. They have a number of competing financial priorities – reducing education debt, paying rent or a mortgage and starting a family,” he said.

“What is clear from these findings is that while millennials believe they are planning well for the future, many are struggling to make the connection to insurance and how it can guarantee everything else they want to do in life.”

The study interviewed approximately 700 consumers who had purchased life insurance through an adviser, 300 consumers who were considering purchasing life insurance through an adviser in the next two years and 200 SMEs.

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