According to the ASX’s Australian Investor Study 2023 report, the proportion of Australians looking for advice has increased considerably since 2020, with 29 per cent saying they would seek advice in the next year, compared with 24 per cent in 2020.
The increase also extended to those seeking advice beyond the next 12 months, which has increased from 18 per cent in 2020 to 23 per cent in 2023. Unsurprisingly, there is a corresponding drop in Australians not looking for advice, falling from 36 per cent in 2020 to 25 per cent.
“Our survey reveals that Australians under the age of 50 have a greater intention to seek advice than those aged 50 and over,” the report said.
“Among investors, 32 per cent plan to seek advice within the next 12 months, while a further 19 per cent will do so at some point in the future. More investors with larger portfolios or fewer years of investing experience intend to seek advice – either within 12 months or in the longer-term future.
“Investors with the least amount of investing experience are the most likely to want advice, with 75 per cent of those with less than a year’s experience saying that they intend to seek advice sometime in the future.”
Among investors with less than $100,000 in their portfolio, only 44 per cent plan to seek advice at some point in the future. The highest proportion of investors planning to seek advice are those with $500,000 to $1 million in their portfolio (60 per cent).
About 75 per cent of what the report termed high value investors (HVIs) received some form of professional advice in the last 12 months – with the largest segment coming from full service stockbrokers (34 per cent). Financial advisers made up 33 per cent, followed by accountants (22 per cent), with 13 per cent of HVIs turning to robo-advice tools for advice.
“HVIs expressed a range of attitudes regarding professional financial advice. Our survey found that 32 per cent of HVIs wouldn’t use an adviser because they believe they can make better decisions themselves,” the report said.
“Another 30 per cent said they’d use advisers as a sounding board to test their own investing ideas. And 30 per cent say they’d use an adviser because they don’t feel comfortable making investment decisions, with 29 per cent finding advisers too expensive.
“A large proportion of this cohort appear to be comfortable with their knowledge and confident in their abilities, in contrast with female and next generation investors.”
Unsurprisingly, the report also found HVIs are willing to pay more for professional advice, with a median of $3,000 – considerably higher than non-HVI investors (median of $570).
Those currently receiving advice are significantly more likely to continue doing so in the next 12 months (57 per cent), with a further 22 per cent stating they will do so in the future. According to the report, this suggests they continue to see value in using advisers.
On the flipside, the report found only 9 per cent on non-advised investors would seek advice in the next 12 months, with 16 per cent saying they would further down the track.
