The results of AIA Australia’s Australian Financial Advisers Wellbeing Report, a mental health survey conducted by peak performance researcher Adam Fraser and Deakin University, reveal some extremely concerning statistics about the impact of recent industry changes on advisers’ wellbeing.
Key findings from the report, which surveyed over 700 Australian advisers, found that 73 per cent are experiencing high levels of burnout from stress while 67 per cent experienced some level of depression.
“We did this research to help the people who invest so much time and energy into improving the financial security of Australians,” Dr Fraser said.
“Concerningly, we found that advisers had the lowest scores in areas of wellbeing, mental and physical health and higher scores in terms of stress, burnout and work overload, than any industry we had previously studied.”
A further 61 per cent of survey respondents reported trouble sleeping as a result of stress, while around a third of advisers who participated in the report said they were seeing a medical professional to manage their mental health issues.
Compared to the average Australian, the report found advisers were 51 per cent more likely to belong to a high mental health risk group. Advisers also scored lower than average in several wellbeing categories, with just 21 per cent saying their life was often close to ideal, and only 36 per cent saying they were always happy in their job.
Among those who were actively enjoying work, which the researchers termed as “thrivers”, common traits were that they were able to spend less time on compliance and administration and more time on client meetings and new business.
Those who were thriving also had a higher work/life balance score, consumed less alcohol and had clearer boundaries between professional and personal time, such as by not answering calls or completing work tasks out of business hours. Additionally, they displayed more resilience in adapting to complex or difficult situations, such as by thinking about innovating around regulatory roadblocks rather than staying within the rules.
Deakin University researcher John Molineux said while the results were extremely concerning for the industry, advisers could take positive lessons from those who were evolving more quickly in the face of the dramatic changes the sector was going through.
“Due to major change and reform in the industry, many advisers are struggling and it is impacting their health and wellbeing, which I think should be a major concern to us all,” Dr Molineux said.
“Yet there is hope, as pathways for help are becoming available and many of the advisers we interviewed are learning, coping, adapting, recovering and moving away from stress reactions which can prevent us from taking positive action.”
The definition of insanity is doing the same thing over and over and expecting the same result…You didn’t need to do a survey… you just needed to look at the number of FPA members paying $1,000 and renewing memberships, and thinking they’d be represented. Only got yourselves to blame.
You mean a “different result”. But your point is correct. The FPA is useless and members have been taken for a ride.
Does anyone else find it highly sus how the “father of FOFA” is now an investor and director of a robo advice company?
Not surprising though. The political organisation that introduced compulsory superannuation is now one of the main financial beneficiaries of compulsory superannuation. Feigning concern for consumers has become popular technique for enriching political insiders.
Super rorts are the modern day property developer political inside rezoning rorts.
Long love $$$ for the boys and those connected.
It is up to us. Politicians have told us they rather strangle us through red tape than stop product providers employing us as sales people. While we allow ourselves to be used as sales people we will be strangled by regulation.
It is up to us.
How exactly do you see financial advisers being used as salespeople, and what exactly is your solution?
I am a financial adviser who definitely isn’t a product salesperson, so I’m struggling to understand what you’re talking about, and who you are referring to as “us”.
You are a salesperson if your licensee is a product provider. It can be more or less hidden but you are still the servant of two masters – the client and the licensee. If your licensee has no products of its own, you can be but need not be a salesperson. You can then be an adviser.
So when you say “It is up to us” you were referring to advisers licensed by product providers. If that is your situation, why are you lecturing others in this forum, rather than getting your own house in order?
Many of us have already taken that step long ago, and resent being lumped in the same boat as those of you who have belatedly “seen the light”.
“While we allow ourselves to be used as sales people we will be strangled by regulation. It is up to us.”
It is entirely up to you. If you continue to work for a product provider and thereby allow yourself to be used as a salesperson, then I have little sympathy for you.
Go out on your own, self-licence or join a AFSL that isn’t tied to any products. Have an open APL. Be free to provide unconflicted advice. You won’t regret it.
Nothing is worth your health.
There have been suicides! Does anyone care? Advisers with 30..40 years experience being forced to study again. Where else does this happen ?
Indeed. It simply does NOT happen anywhere else. This is targeted to rid the industry of advisers by those who ‘own’ the industry and the politicians. Make no mistake, I don’t say this lightly OR ‘out of school’. This is acutely planned. I’ve seen it from the inside. Robo is coming believe it, want it, or not. There are self absorbed, out of control ego-driven people who know what they want, how to get it and will indeed get it. 2026 is their target. They will own it all by then. client best interest will hardly exist and does NOT exist right now in their view. Only THEIR best interest and ridding the industry of ALL experienced advisers is a large part. The whole thing is beyond reprehensible and will be uncovered in the fullness of time but it will be too late to save the industry as we know it now. The ‘owners’ will still be there but nobody else.
only 75% i think they missed the other 25%
stress is not dealing with clients, its the UNWORKABLE COMPLIANCE. the FASEA requirements also what a stupid exam, so ambiguous and they give you a debrief when you fail & pat themselves on the back saying its personalized and here to help, please go jump you are part of the problem. Having a business were clients are happy!!!!, but you as the advisor are stressed to the max, trying to run a business to make a profit, with all this red tape. Also clients are sick of continuing signing opt in docs etc, my clients say if i do not what to use your service i leave,. all this compliance has added Hugh cost its questionable if you can commercially look after a client for less than $3500 p.a
So with all this what has improved?????
What has improved is the banks have significantly left (for now) and their 20 years of vertically integrated sales is mostly gone.
What wrong, too much.
Industry Super are the new banks but with Govt corruption of General / Intra Fund Sales given the green light by best buddies ASIC.
Frydenberg absolutely hates advisers. Why ?
Not sure but seems to be to get rid of them and give banks Robo Advice profits without competition.
As for Real Advisers, STRANGULATION BY BS REGULATION is very stressful and completely against our clients.
Burnout is depression at work but not outside of work. Depression is full-time.
There is no hope as the level of compliance required is stupid, non-sensical and harmful for advisers and clients. Burnout is simply a healthy response to a toxic situation. Yes, some people manage but they have lots of support, high quality support.
Surely this report should be on every politicians desk and be mandatory reading! It’s a bloody disgrace what they have done to this industry….
Couldn’t agree more!
Pollies don’t care. Financial planner issues are not going to get votes. Pollies reminding voters about financial planners and how they con’t be trusted by consumers (especially after the Royal Commission) is more like to get votes. The financial planning industry needs to get over itself (because the pollies and consumers already have!).
Thanks LNP marketing Dept.
Great to see the LNP, Frydenberg have finally realised that Advisers now hate you and will help influence our clients to hate you.
So some Advisers are “innovating around regulatory roadblocks rather than staying within the rules”. Please elaborate how that is done………is it cutting corners or flying close to the wire or simply dodging the rules and hoping never to get caught? It seems precarious to do so given that Advisers can cop a prison term simply for “insufficient record keeping”.
Please point out who has received a prison term for “insufficient record keeping”.
Yes…but who cares.. as no one will represent Advisers…it’s always our fault… All we can do is keep our heads down and deal with our happy clients that think we’re awesome.
Working in financial planning is a nightmare. All we do is try to help others while running a small business. Yet we are treated like criminals and have to deal with the most over the top rules and regulations. We are in constant fear of having our livelihood taken away by the likes of ASIC for the most minor breach of the layers of compliance which only seems to apply to financial planners. Anyone working in financial planning would not be surprised by these results. The most depressing thing is no one outside of our profession cares and there is absolutely no sign that anything will change for the better anytime soon.
Researcher, i couldn’t agree more.
The writing is on the wall that the banks will renter planning and super funds will provide advice to the market digitally
( See what the Link group are providing the big boys).
Sadly the traditional self employed face to face adviser is a sitting duck waiting to be shot.
As you say, no-one outside our industry cares.
I see the reasons as:
1. advisers are easy headline bait for politicians and ASIC to score points and votes
2. we don’t make political donations like Industry Funds or banks
3. mainstream media don’t want to talk about advisers issues as they will lose the advertising contracts with the Banks and Industry Super
I feel like i am sitting on death row just waiting for the call as a sole self employed planner.
I passed the FASEA exam early which took some pressure off.
I feel i will have to either sell or get out, neither of which were planned 5 years ago.
Sadly Morrison, Frydenberg, Hume, and everyone else from the Liberal party have pandered to big business to save their seats.
Anyway, that’s enough wo from me, i am going to talk to some clients while i can.
Good luck everyone.
We know what we do and how much our clients appreciate it.
You have two choices. Firstly, sit back and complain and/or leave the industry. Alternatively, you could innovate and turn your practice into a thriving cash cow that doesn’t require 60 hour weeks.
Your best defence is to handle FEWER clients and charge ADDITIONAL fees (which is justified because of the layers of unnecessary rules and regs). We follow the rules and the clients must pay for this.
The smart ones are getting into FIFO or retire. Best way to send a message to this inept Liberal Govt