An increasing proportion of Aussies are "worried" about their financial future

Despite our strong economy, low unemployment rate and recovering share market, we still appear stung by the global financial crisis and uncertainty in overseas economies.

The Citibank study ranked 11 Asia-Pacific countries including China, India, Indonesia, Malaysia and Thailand in their annual financial well-being index, and Australia came last.

An increasing proportion of Aussies are "worried" about their financial future, up from 26 per cent to 29 per cent, it found.

Citibank Wealth Management says we are now in a "new reality" after the financial turmoil of recent years.

Senior manager Andrew de Graaff says many Asian markets emerged from the GFC faster than Australia's did.

"It's a new reality of volatile stability, and the adjustment period means Australians don't know what to expect," he said.

"At the moment they are in a holding pattern.

"We also have to be aware that a lot of Asia-Pacific countries rely a lot on extended families to see them through tough times. That's not as prevalent in Australia where people are relying more on their own ability." The Citigroup research also found:

Fewer Australians know how much they will need for retirement (52 per cent, down 4 percentage points).

Less than a third of us (31 per cent) have an up-to-date will.

Only 10 per cent of Australians say they have a formal financial plan.

Goldsborough Financial Services director and senior adviser John Oliver says most people don't think about a formal financial plan until they near their 50s.

"People in their 20s and 30s have a whole lot more other issues to deal with, and thinking about retirement is the last thing on their minds," he says.

But starting young is important in areas such as protecting your family with life insurance, having the right investments in super, and making the most of tax rules, he says.

Oliver says advisers can reassure people during times of financial uncertainty. He says only three of his 400-500 clients pulled out of their investments during the GFC and "the rest stayed with their strategy"."I think we as Australians fear the rest of the world is not recovering as quick as we are.

"Our markets take a lead from what's happening in the US, Europe and particularly China, and there's a mindset that we are not confident in putting more into the market."

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