Bankwest’s second Financial Fitness Index reveals that one in four men and one in three women are financially unfit. Young or old, the results were similar across all those surveyed by the bank. A little under 30% relied too heavily on borrowed money, had negligible or zero savings, no life insurance and high housing costs relative to income.

OK, so the last item in the list is an unfortunate fact of life in Australia, where we are burdened with some of the least affordable housing in the world, relative to income. The other measures, however, are things we all ought to be able to remedy without causing too much financial hardship.

So just how out of condition are we? Why are we in worse shape than a year ago? What can we do to get into condition?

More of us now fall into the most serious category of financial ill health than in last year’s survey in the middle of the GFC. Only 22 per cent of those in the survey were classed as financially fit, with regular savings, good insurance cover, high asset levels and low housing costs. Western Australia has the highest proportion of financially fit residents, at 36 per cent. Queenslanders brought up the rear, with only 18 per cent falling in the top level.

Age had some influence on results, but overall our condition is worse than 12 months back. In spite of shrunk super balances and reduced share values, retirees remain reasonably fit with just 15% falling into the least fit category. Baby boomers falling into the unfit category increased by 10% between surveys.

For most of us (69%), 2009 was a difficult year. Australia might have managed better than many countries to avoid the worst of the GFC.

The much-touted economic recovery might well be underway, but most of us have yet to benefit from it.

The stock market is growing again. So are super balances. However, both remain well below their pre-GFC levels. With the stock market and superannuation major contributors to the wealth of many Australians, most of those surveyed reckoned they were worse off in 2009 than the year before.

So, the big questions then are:

Will you recover your financial fitness?

How quickly?

What can you do to hasten the recovery?

We’re not economists. Nor clairvoyants. We see the same signs of recovery that others see. We read the same ‘expert’ predictions about long-term mining booms, robust Australian economy etc etc. We reckon that sooner or later the recovery will have a positive impact on your financial health. The speed with which you recover isn’t entirely in your hands, but you can do things to hasten it along. What we’d suggest is that you talk to a trusted financial adviser to see what changes he or she would recommend to ensure you’re in the right place to benefit from the growth.

So, what can you do to give your own recovery a bit of a hurry-up? As our monthly returns repeatedly show, it’s not just important to be in the right option type for your risk profile and life stage, but to find the best performers in that option type. There’s a gap of Grand Canyon size between the best and worst performers in all the popular options. That performance gap translates to extra money in your super balance. How much extra? We’ll show you.

Let’s imagine two people, Joe and Jo. It’s 2004 and both have accumulated $300,000 in super. Each of them invests their $300,000 in one of the Balanced option products included in SuperRatings’ SR50 Index (a benchmark based on the performance of a selection of larger, established funds). Joe puts his money into the worst performing product. Jo puts hers into the best performing product. So how much more does Jo have today than Joe has? Are you sitting down? After just 5 years Jo’s $300,000 has grown to $406,798. Joe, meanwhile, now has $314,523 in his account. A staggering $92, 275 extra in 5 years.

How do you find the best performers? Start by checking out Savvy’s Top 10 Performers list. Compare our ratings and our awards (especially those for long term performance) to fine tune your search. Then view the Fundamentals reports on your shortlisted funds to find the one right for you.

Another area you need to look at is that of fees. Some funds will charge you twice as much as another fund for similar products and identical balances. Over the years, lower fees mean more money saved. Add compound interest to that saved money and after 10 years you could be many hundreds of dollars better off. Our Top 10 Fees lists will help you find the fund that offers the best value. Finally, make sure you have sufficient insurance. How much is enough? Obviously this will depend on your financial commitments and your debts but the last thing you want is to be caught short and to have to dip into your super prematurely to cover expenses. Super funds generally offer their members great insurance value when compared with the products offered by the major insurance companies.

To find suitable insurance cover check out the Savvy Top 10 Insurance categories.

By spending less on fees, by making sure you're spending less on fees, by making sure you’re covered for unexpected events and especially by getting into the best performing funds, you’ll get yourself financially fit.

Disclaimer: SuperRatings Pty Limited holds Australian Financial Services Licence No. 311880. This release has been prepared for the purpose of providing general advice only and has not considered the recipients objectives, financial situation or needs. The recipient should consider obtaining independent advice before making any decision about a financial product referred to in this report and should obtain and consider a copy of the relevant Product Disclosure Statement from the product issuer.