Finance & Insurance
Age by Industry
Age by Occupation
Age by Education
Age by Working Arrangements
Age by Industry Trends
Age by Industry
The average age (mean) of the Finance and Insurance industry is 37.3 years. The chart below displays the age distribution of workers in Finance and Insurance. The largest proportion of workers are in the 30 to 34 year age group (16.9 per cent), followed 25 to 29 years (16 per cent). People aged 55 years and over are under-represented in this industry.
AGE BY INDUSTRY
Finance & Insurance
Age grouping
ABS (2001) Labour Force Australia
Projections of the age profile of the Finance and Insurance industry against the age profile of the population in ten years time, shows that there could be considerable variation between these two profiles. Most noticeable is the diversion at the 25 to 34 years and 55 years and over age groups, demonstrating a higher proportional concentration of young people compared to the Australia population.
Finance & Insurance
Workforce Population Age Profile Year 2004
Age by Occupation
The age diversity of workers across occupations in Finance and Insurance is
relatively limited. The oldest employees within the industry are Associate
Professionals (aged 39.4 years) and Managers and Administrators aged 39.2 years
on average. The youngest group is Professionals, averaged at 34.5 years.
AGE BY OCCUPATION
Finance & Insurance
Occupation
ABS (2001) Labour Force Australia
Age by Education
Recent legislation introduced in the Finance and Insurance sector, whereby financial advice must be given by trained employees, has highlighted the importance of accreditation and ongoing skill development. Almost half of all workers in Finance and Insurance have not post-secondary education. The majority of the workers, who have a post-secondary qualification, have attained a Bachelor Degree (20.9 per cent). Though workers aged 15 to 44 years have a significantly higher proportion (23.2 per cent), compared to older worker (14.7 per cent). Similarly, 3.9 per cent of younger workers have post-graduate qualifications, compared to 2.6 per cent of older workers. Sixty-two per cent of workers aged 45 years and over who do hold post-secondary qualifications, obtained them before 1980. For workers aged less than 45 years, 31.4 per cent had completed their qualification prior to 1990.
| Highest Qualification | 15 to 44yrs | 45yrs and over | Total |
|---|---|---|---|
| Postgraduate Degree Level | 3.9% | 2.6% | 3.5% |
| Graduate Diploma and Graduate Certificate Level | 2.0% | 1.6% | 1.9% |
| Bachelor Degree Level | 23.2% | 14.7% | 20.9% |
| Advanced Diploma and Diploma Level | 8.0% | 12.0% | 9.0% |
| Certificate Level | 10.1% | 11.4% | 10.4% |
| No Post-secondary Education | 48.1% | 50.9% | 48.9% |
| Other | 4.7% | 7.0% | 5.3% |
| Total | 100.0% | 100.0% | 100.0% |
| Year completed qualification | 15 to 44yrs | 45yrs and over | Total |
|---|---|---|---|
| 1-15 hours | 4.6% | 7.5% | 5.4% |
| 16-24 hours | 7.5% | 8.2% | 7.7% |
| 25-34 hours | 7.8% | 14.2% | 9.5% |
| 35-39 hours | 18.9% | 16.1% | 18.2% |
| 40 hours | 26.6% | 20.1% | 24.9% |
| 41-48 hours | 15.4% | 11.9% | 14.4% |
| 49 or more hours | 19.2% | 22.0% | 19.9% |
| Total | 100.0% | 100.0% | 100.0% |
Age by Working Arrangements
One in four workers employed within Finance and Insurance have a standard work arrangements based on a 40 hour week. One in five younger workers and one in four older workers, are employed less than 35 hours. This represents a significant level of industry flexibility. Approximately one third of workers in the Finance and Insurance industry are also employed for more than 40 hours a week (34 per cent). Working beyond the standard 40 hour week, raises questions about the sustainability of workers as they age.
Table: Weekly Hours Worked by Age
| Year completed qualification | 15 to 44yrs | 45yrs and over | Total |
|---|---|---|---|
| 1-15 hours | 15.4% | 11.3% | 13.6% |
| 16-24 hours | 12.0% | 10.1% | 11.2% |
| 25-34 hours | 13.8% | 14.9% | 14.3% |
| 35-39 hours | 17.2% | 16.1% | 16.7% |
| 40 hours | 16.4% | 16.2% | 16.3% |
| 41-48 hours | 11.6% | 11.7% | 11.6% |
| 49 or more hours | 13.6% | 19.7% | 16.3% |
| Total | 100.0% | 100.0% | 100.0% |
Age by Industry Trends
The Finance and Insurance industry requires a highly skilled and flexible workforce to sustain and compete in today’s global marketplace. Critical to this is an integrated culture of learning within Finance and Insurance organisations. Yet at present, training is focused exclusively on meeting regulatory requirements and structured development of management skills within the industry is limited. Access to consistent and high quality training, trainers and resources as well as flexible training delivery modes will assist the sector in developing priorities for learning and development, beyond the immediate scope.
For the Finance and Insurance industry population ageing represents a huge opportunity to grow market share. The industry can play a critical role in facilitating individuals to effectively manage their money into the future. Nationally the over 55s account for 25% of the country’s disposable income, 39% of total wealth and 54% of financial assets. Research by Westpac and the ASFA into retirement living standard show that retirees will needs significant savings to sustain even modest lifestyles:
- Modest lifestyle single - $16,930
- Modest lifestyle couple - $23,550
- Comfortable lifestyle single - $32,800
- Comfortable lifestyle couple - $43,350
Yet, older people have the following concerns about many financial institutions, particularly banks (e.g. bank fees and charges, technology driven facilitates and the decline of to banking services in regional and remote areas of Australia). Business must therefore balance the benefits of technological efficiency with the desires of one of their major consumption groups.
Sources:
Access Economics (2001) The Silver Market Goes Platinum - Population Ageing and the Economy Fact-sheet
Enabling Queensland Inc. (2004) Australia’s Ageing Population, www.cg3.com.au.
Klap, S (2004) Solution For Ageing Asset Rich Cash Poor
National Finance Industry Training Advisory Body Ltd (2002) Financial Services Industry Training, Strategic Plan 2002-2004
