Understanding Modern Australian report launched

Last week, TAL launched its first annual Understanding Modern Australia report, developed in partnership with McCrindle. The report is a new longitudinal benchmark tracking how Australians think, feel and act across the areas of life that most shape their financial security and wellbeing, with real implications for how super funds can best support their members. 

Engaged, but not confident

Drawing on a survey of over 2,000 Australians, as well as generational focus groups and interviews with financial advisers, the research reveals a clear gap between financial engagement and financial confidence. While 86% of Australians regularly monitor their spending and 80% prioritise budgeting, only 28% are satisfied with their finances, and 62% feel stressed when they think about them. One in three (32%) Australians don't feel in control of their financial future.

TAL Group CEO and Managing Director Fiona Macgregor said the findings show that access to more information isn't automatically translating into greater confidence.

"AI and digital tools can help people prepare, test their thinking and build confidence, but they need to be used with the right checks, trusted sources and human support where it matters," she said.

“Financial confidence matters because it underpins so much more than wealth. It gives people the freedom to plan, protect their family and move forward."

Mark McCrindle, Founder and Principal at McCrindle said the growing use of AI makes the role of trust particularly significant.

“This research confirms Australians are putting real effort into managing their money, but many are still struggling to turn that effort into a sense of control over their financial future,” he said.

“AI is quickly becoming a tool Australians use to understand and manage their finances, particularly among younger generations.”

“The challenge is knowing what to trust, what’s relevant to your circumstances and having the confidence to act. Despite having access to more information than ever before, people still place greater weight on human expertise.”

Key insights shaping modern Australia

The report explores five pillars of modern life, each measured through TAL and McCrindle's new Modern Australia Confidence Index (MACI). The MACI measures the gap between what Australians believe and how they behave, and how this shapes their confidence across those pillars: health and wellbeing, society and culture, financial wellbeing, digital life and personal connections.

Findings include:

• Building financial security. Financial freedom and independence is Australians' top hope (59%), yet finances remain the area of life they're least satisfied with.
• Trust and decision-making in an age of information overwhelm. Australians place a premium on verified, personal expertise, trusting local businesses (72%) and super funds (65%) well ahead of AI (33%) and the media (30%).
• Tech, AI and the human advantage. Over 3 million Australians already use AI to help manage their money, but most respondents still say they'd trust a human over an algorithm with a major financial decision.
• Shaping a holistic life. Protecting family and gaining peace of mind are the biggest drivers behind Australians taking out life insurance, rather than maintaining wealth for its own sake.
• Work and retirement redefined. Retirement is increasingly seen as ‘life after full-time work’ rather than a hard stop. While 91% see retirement planning as important, only 62% actually have a plan in place.

What this means for super funds

The inaugural MACI sits at 70 out of 100. It’s a solid starting point, but with clear room to grow. The widest gap between what Australians value and how they act sits in financial wellbeing.

Notably, Australians who hold life insurance score higher across every pillar of the Index than those who don't. This is strong evidence that protection doesn't just manage risk, but helps provide a broader sense of confidence and security.

This report is the first of what will become an annual benchmark. As the MACI tracks how the confidence of Australians shifts over time, it will offer super funds a clearer picture of where the gap between intention and action is widest, particularly around retirement, and where support is likely to make the most difference.

To learn more, download the Understanding Modern Australia report.