More than half of Australian retirees believe financial advice is important for retirement planning, but only 24 per cent are working with a financial adviser.
“Given ongoing market volatility and protracted low interest rates, it would be unwise for retirees to adopt a set and forget approach to their savings and investments and this is often where those working without professional advice become unstuck,” said Manuel Damianakis, head of retail for Franklin Templeton in Australia.
“As an industry and as a society, we need to navigate a better path where all retirees can access professional advice and still feel they have sufficient self-management and control.”
One in three retirees said that they had no plan for spending their retirement savings, while many also said they lacked a contingency plan in the event that they are unable to manage their finances.
Only 54 per cent of Australians said they co-ordinated their retirement planning with their spouses, suggesting a widespread lack of forethought in retirement planning.
“Eighty-one per cent of those retired have never developed a written retirement income plan and only 43 per cent told us they have a strategy to generate income for retirement that could last 30 years or more,” said Mr Damianakis.
Australia had the lowest incidence of adviser use by retirees, while 57 per cent of retirees in Canada and 47 per cent in the US were working with an adviser.
The survey, conducted for the first time in Australia in May 2019, involved over 2,000 Australians.
[quote=Drew]Planners charging for work not done also have a case to answer for. Put them on ongoing service and make them a cup of tea, not worth $5,000[/quote][quote=Drew] I guess that depends on what the adviser is doing for the client doesn’t it. I believe most clients are not brain-dead and after dealing with their adviser for many years would know whether or not the fee is appropriate for the peace of mind they derive from a quality adviser.
Planners charging for work not done also have a case to answer for. Put them on ongoing service and make them a cup of tea, not worth $5,000
just listen to the endless industry super and challenger ads that seem to encourage retirees to run off and not seek advice.. just dumb
Retirees think that they are reducing their life savings with every withdrawal they make. They are worried despite adequate balances that they might run out of money before they run out of breath! With all the negative press about financial advisers is it any wonder that they won’t use an adviser that they have to pay? They just don’t get the real situation that an adviser can add significant value to their portfolios. For this, the media and authorities should have a case to answer for.