How to survive the pandemic – and save $1,200 – tips from the minister in charge of our finances

By Peter Lynch |

Saving It

The minister in charge of our financial services has given her personal tips for financially surviving the pandemic. Senator Jane Hume, minister in charge of superannuation, financial services and financial technology, told Together Australia’s Clever Money podcast that switching home loans and changing credit cards could save families as much as $1,200 in a year.

Asked what we should do to ensure our personal circumstances during the coronavirus, the minister replied: “The most important thing that people can do is do a personal, financial health check. Know your situation. Understand your own finances.

“Write down what it is you own, what it is you owe and what insurances you have.  What programs are you entitled to?

“It sounds really basic but it’s amazing how many don’t know their circumstance and that they can make small changes to change their circumstances. Only one in five Australian switch their home loans or credit card to a different provider,  but we knew chances are you can, if you do switch,  save $1,000 o your home loan or $200 on your credit card per annum.

“We know that only a third of people have an awareness of their superannuation balance, yet it’s so important to understand the quality of life you will enjoy in your future years.”

She recommends a “deep dive” into people’s own financial futures. The Senator believes there is a whole new awareness of personal finances – especially super.

Senator Hume said ASIC had allowed relief to financial advisers to allow them to give advice on super.

“People are now beginning to turn to where they can access affordable financial advice and we know that Together Australia is doing a terrific job of getting that advice out to people.”

The Senator said the government was keen to see as many Australians as possible access affordable financial advice.

And she praised the financial industry’s response to the pandemic, including the banks loan relief for 900,000 people, pandemic insurance, and the super industry that had delivered early release super within 10 days.

“And financial advisers and the good work Together Australia has been doing has made sure financial advice has been delivered.”

The best piece of advice she has had?  “I have two financial advisers who work with me, and the best advice has been around estate planning. It’s so important to ensure, should the unthinkable happen, that your assets are split the way you want them to be.”

And the legacy of the pandemic? The Senator agreed it’s hard to find a silver lining in the current situation, but she believes the pandemic could herald a new and exciting period for the financial industries.

“People are looking at their personal finances in new way and there is a new urgency to ensure they can access products and services that are specifically tailored for them.”

To hear our Clever Money podcast, go to:

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