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Wealth requires a plan, and confidence

AAP logoAAP 28/12/2016

Most Australians believe they can achieve wealth on an income of less than $100,000 a year but fail to draw up a financial plan to get them there, a new survey shows.

The latest MLC Quarterly Australian Wealth Behaviour Survey shows Australians believe wealth means being debt free, having enough money for emergencies, being able to fund desired lifestyles, doing what they chose to do and being able to help out family and friends.

Most think they can achieve those goals with an annual income of less than $100,000, and with savings and investments of $818,000 in retirement.

However, only half of the respondents think they have done enough to achieve wealth, mainly because they are not earning enough.

A surprise second reason was self-doubt.

National Australia Bank's corporate super general manager Lara Bourguignon said if people doubt their ability with money, it makes sense that they believe they will not meet their goals.

A key reason for doubt was the lack of a financial plan, reported by close to three quarters of respondents, she said.

"With so few people having a financial plan, we perhaps shouldn't be surprised that Australians doubt themselves and don't believe they have done enough to reach their wealth goals," Ms Bourguignon said.

"Having a financial plan is crucial to feeling empowered and getting where you want to go with your money."

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