This comes as the advice profession continues to advocate for broader coverage as it tries to communicate the benefits and certainty in can provide during unstable times.
According to Blossom, a saving tools app, 57 per cent of respondents in a survey said they did not believe the recent Federal Budget addressed the ever-mounting cost of living challenges Australians are facing.
Furthermore, 40 per cent have already begun to change financial plans as a result, with 43 per cent already delaying major financial goals due to uncertainty, with those who felt the Budget failed twice as likely to change their financial plans.
Blossom co-founder Ali Rosenberg said the research highlights a growing divide between economic measures being introduced, and how Australians are experiencing their day-to-day finances.
“Australians have now had time to assess the Budget and many still aren’t seeing meaningful relief in their day-to-day finances.
Household costs remain elevated and people are continuing to make difficult decisions about where they spend, save and invest their money.”
“The clearest finding was that Australians who felt the Budget missed the mark on cost-of-living pressures were significantly more likely to change their financial plans. Confidence matters because it directly influences financial behaviour.”
Of those feeling less confident about their finances, 47 per cent were still focused on growing their wealth.
“Australians aren’t standing still. They’re actively reassessing where they hold their money, what returns they can reasonably expect over the next 6 to 12 months, and whether their money is working as effectively as possible for them,” Rosenberg said.
Any adviser who looks over these Blossom statistics would likely have one conclusion: these Australians’ confidence would be raised with financial advice.
“Advice is more important than owning your own home. Understanding your costs, understanding what your expectations are and understanding what’s coming next becomes a really powerful driver. The act of getting advice changes people’s confidence in a way that we didn’t expect,” CoreData founder Andrew Inwood told ifa’s Evolution of Advice Summit last month.
This is in line with a plethora of studies, including Russell Investments’ annual Value of an Adviser report, with last year’s addition finding that nearly 90 per cent of advised investment clients feeling more confident thanks to planning.
However, many Australians remain outside of the realms of advice (if Inwood’s estimate is to be believed, that comes to 1.7 million in the pre to retiree segment alone), cost of living pressures and Budget disappoint will continue to weigh heavier on the unadvised and they will continue to to try adapt without that vital guidance.
“We’re seeing Australians place greater importance on having a financial buffer, but also not wanting to put their bigger goals on hold indefinitely. The challenge is finding financial solutions that help them navigate uncertainty today while still progressing towards tomorrow’s goals,” Rosenberg concluded.
