A recent report by ASIC (Australian Securities & Investments Commission) has shed some light on what consumers think of financial advice and of the advisors who deliver it. The report explored the use of financial consultants, and attitudes towards them. Of those surveyed:
- 12% had received financial advice in the last 12 months
- 27% had received financial consultations at some point in the past
- 41% intend to get financial advice in the future.
Unsurprisingly, people who had already sought advice, or intended to, were more likely to be better engaged with, and more confident about, the role of financial advice and advisors.
The typical profile of people who had sought financial advice in the last 12 months looked like this:
- They generally enjoy relatively affluent levels of household income
- They are more likely to be university educated than the national average
- They are more likely to be nearing retirement age
- They have set long-term financial security for their lives post-work.
What were the most popular areas for Australians to seek financial advice about?
- Investments (45%)
- Retirement income planning (37%)
- Growing superannuation (31%)
What areas were Australians less likely to seek advice about?
- Budgeting or cash flow management (22%)
- Aged care planning (18%)
Why do Australians use the services of financial consultants?
- Access to the specialised financial expertise that advisers have topped the list (79%)
- Recommendations of products participants could not find themselves was a close second (75%)
- Also high up was the role of a financial advisor in reading fine print and notifying their clients of important matters (74%).
The survey also revealed the attributes participants looked for when choosing a financial advisor. The top three were:
- Level of experience (41%)
- Reputation at (38%)
- The ability to talk to clients in a way they can understand (36%)
In summary
The more aware Australians are of financial reforms and the more eager they are to receive advice, the more positively they are likely to be towards the role and the importance of the financial advice industry. While this is something of a self-fulfilling prophecy, it’s good to know that a little knowledge and openness to seeking expert advice can go a long way to planning a secure financial future.
If you would like to discuss your financial planning goals, reach out to us here.
HPH Solutions are financial planners based in Perth who help people all over Western Australia with financial planning.