Amidst ongoing economic challenges, a recent report from Colonial First State (CFS) highlights the urgent call for accessible financial advice in Australia.
Surveying 2,250 Australians, CFS discovered that 82% of respondents believe financial guidance should be available to everyone.
The connection between financial advice and stability is underscored by data showing Australians who employ advisers can financially withstand unemployment for longer periods—11 months for men and 10 months for women—compared to those without, who can last only seven and six months, respectively.
With three-quarters of Australians aged 18 to 64 expressing anxiety over rising living costs, there is a growing demand for affordable financial assistance. The report also notes that not all Australians require sophisticated financial strategies, with many needing straightforward guidance to navigate economic uncertainties.
A striking 72% of respondents advocate for financial advice priced in alignment with consumer needs, emphasizing the demand for simplified service models. Meanwhile, 26% of past adviser clients noted they discontinued services due to perceived obsolescence, suggesting new advisory frameworks could foster client retention.
The study also reveals significant barriers preventing individuals from seeking professional advice, with 36% citing unaffordability and 34% feeling the expense outweighs potential benefits. Additionally, 30% regard their own financial situations as insufficiently complex to necessitate external guidance. Misunderstandings linger, as 13% of respondents acknowledge unawareness of advice benefits, and 8% are unsure of how to engage advisory services. Alarmingly, 18% have never even considered consulting a financial adviser.
The Delivering Better Financial Outcomes reforms aim to enhance the reach and affordability of financial advice. CFS's superannuation CEO, Kelly Power, underscores this initiative's critical nature amid Australia’s demographic shift toward retirement. Power asserts that, with governmental continuity, there is a pivotal moment to finalise reforms, facilitating broader access to professional financial advice as the Australian populace ages.
Published:Wednesday, 4th Jun 2025 Source: Paige Estritori
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