The eighth edition of the report found that 89 per cent of advised clients state that advice makes them more confident about their finances as well as more knowledgeable, while 85 per cent feel supported to “make decisions aligned with their lifestyle and values”. A further 86 per cent believe their financial position has been improved after seeking financial services.
Conversely, unadvised investors surveyed for the report reflected a lack of confidence and certainty.
“We asked, for those that don’t have advice, what’s your degree of confidence in achieving your financial goals? Only 26 per cent of people said they were reasonably confident,” Jason Edgar, Russell Investments head of Asia-Pacific, stated. A further 76 per cent said they would feel more confident if they received financial advice.
Furthermore, the report found that advice can help accelerate retirement, with 42 per cent of surveyed clients retiring before the age of 65, compared with just 20 per cent without an adviser. The gender imbalance of those seeking advice also still persists, with 62 per cent of unadvised people surveyed being women, who also only make up 44 per cent of advised clients.
“I think ultimately, the client wants to be able to make the final call on their financial situation,” said Neil Rogan, head of distribution Australia and New Zealand Russell Investments. “Having the adviser there to provide the expertise, recommendation and emotional support through that process is really critical.”
Addressing the report at a panel, Rogan also highlighted that these numbers do not represent a highly untapped Gen Z.
“There is an untapped, unadvised market, and surprisingly enough, it’s in a demographic [Gen Z] that you wouldn’t expect,” he said.
He added that advisers are well placed to help Gen Z reach financial goals as well as help them invest according to their values.
“[They are often aware] of significant life events [that are eased by seeking advice]. They’re more likely to invest related to their values, so sustainable investing and those types of things. They’re less fee sensitive than any other demographic,” Rogan said.
Differences in attitudes towards risk were also highlighted, with 86 per cent of clients identifying feeling being in control of their finances as being important, with advisers ranking this a lower priority, valuing avoiding costly mistakes and guiding clients away from them more (70 per cent).
For Rogan, despite advisers and clients being aligned on most values, closing this gap is vital: “Understanding and closing these gaps will help advisers create more meaningful relationships [with their clients].”
