The latest MLC Wealth Sentiment Survey Q1 2017 has found that 73 per cent of Australians indicated they haven’t received professional financial advice in the last five years.
Those that haven’t seen a financial adviser would be prompted too if they had more money, thought they would benefit, if financial advice was cheaper or their financial needs were more complicated, the research found.
When asked what a financial adviser could do to improve their life, consumers said, “Actually demonstrate previous examples of success”, “Contact me more frequently to tell me what’s happening with my investment”, “Be available as an individual rather than an organisation”, “Assure that I am on the right path to being very comfortable” and “Have lower fees or introduce performance-based fees”.
MLC general manager of customer experience, superannuation, Lara Bourguignon said, “We certainly need to start changing our view around advice being only for the wealthy; it’s for all of us.”
The research also identified a significant disconnect between the retirement Australians want and the one they expect to have.
To retire comfortably, Australians believe they’ll need around $1,142,000 in savings (excluding the family home) at retirement, the research found.
However consumers expect to have little more than half of that amount saved by retirement – $638,000 (excluding the family home) – leaving a shortfall of just over $500,000.
This may partly explain why paying off debt is still the main focus for most Australians, the research stated.
“While economic indicators are quite strong, at an individual level it’s apparent that Australians aren’t feeling confident about their finances, and this may be causing anxiety about retirement,” Ms Bourguignon said.
Encouragingly, the majority of Australians who sought financial advice did so for post-employment planning, the research found.
you dont have to rich to invest but you do have to invest to be rich. Gotta start somewhere, have a strategy, start a savings pattern, invest smartly, and let time and compounding do the rest
It’s astounding that people will spend $125 a session each week for a personal trainer to watch them lift heavy things, but will balk at spending the equivalent to half that amount for quality financial advice. I wonder which expenditure will have the greater long term positive impact on the person’s life.
Hey L Plater, without good health there is not a lot of point having money. What a stupid comment.
Health, I could just as easily cast aspersions on your comment and call it stupid, but I wont. It’s two sides to the same coin. Without wealth there is not a lot of point in having good health. Sure you are able to do things physically but you cant afford to do them financially.
I’m guessing that L was referring to the sometimes misplaced focus of many people. They’ll spend weeks working on and planning their next holiday at the cost of thousands, but there’s no way that they would spend one afternoon and half of that money on planning for their financial future.
Most Australians do need to be richer. So they can absorb the increasing cost put on FP businesses due to ASIC… Going back to where we started, low income earners receive no financial advice becuse it simply costs too much.
Aileen, simple answer, if not happy with current adviser you can very easily assign your investments, super, insurances to another adviser. You will not have any issues finding an adviser you can work with and service your requirements. The FPA site will show advisers in your area and you can clearly see who they are aligned with.
We have a few accounts with MLC, I’m very disappointed with the lack of contact from both my Advisor and reply to questions from MLC. I feel like moving my $1300.000 to another company. The money we pay for service is ridiculous and it appears MLC are not even in the top 10 companies at present. No wonder I’m frustrated.
The consumer requires budgeting, debt reduction / consolidation, cash flow panning etc. By and large the institutional adviser (80% of the market) is remunerated on super and life sales, so doesn’t bother to cover the other areas.
At this point in time demand is at an all time high, however it is difficult for the consumer to receive advice or in fact for the adviser to deliver what is required.
Someone should tell ASIC that short term reviews with a long term focus are not possible
megs–adviser or not
Ok Dave. So what would you tell the public that advisers actually do. ?. Seriously.
Megs, have you ever seen a well qualified, non institutionally owned adviser ? You may get a pleasant surprise if you do.
One of the great challenges of financial advice is the perception that regular updates on investment performance is important. Whereas one of the big benefits a financial adviser can actually provide is training their clients not to focus on short term performance.
A telling story which demonstrates a clear fact– the general public do not KNOW what we do. The CPAs long ago started a public awareness campaign, the results speak for itself. About time the associations joined forces and possibly product providers to produce an awareness / education campaign on what planners do but also that a large sum is not a requisite to planning.