The 2014 Advice & Limited Advice Report – compiled off the back of a survey of 6,256 Australians – found the number of active adviser clients had grown to an estimated 2.5 million after falling to 2.4 million from 3 million in the four years to 2013.
Commenting on the result, Investment Trends analyst King Loong Choi said clients are rating their advisers more highly in 2014 than in 2013.
“They feel they’re getting significantly more value out of their relationships,” Mr Choi said. “This has driven a natural uplift in client referrals.”
The research house also found there is an increasing demand for financial advice, with an estimated 1.9 million Australians wanting to look for a financial adviser within the next two years, up from 1.5 million in 2013.
“The increase in demand for financial advice is partly driven by Australians becoming more concerned about their finances,” Mr Choi said.
“In particular, Australians are more worried about the adequacy of their retirement savings, the impact of inflation, and managing their cash flow.”
Investment Trends also found many Australians were deterred from seeking financial advice due to cost, with 30 per cent of respondents in the survey stating “advisers cost too much”.
Mr Choi pointed out that cost is also influencing whether clients seek comprehensive advice or limited advice.
Of the respondents in the survey, only five per cent of Australians would prefer to receive higher cost comprehensive advice while 25 per cent would prefer to receive lower-cost limited advice, Mr Choi explained.
Exactly Dave What of the majority 70% who believe in the value of advice whether a bank or an IFA Maybe no story there
What the industry should be more concerned with is my super, with little personal advice, or god forbid Robo-Adviser
This probably will make ALL the good hard working , well educated advisors re consider why they joined the industry
And why the rabble in canberra (all of them) will ultimately let this happen to the industry
All that gear and no idea, just a keen intent to access everyones super for their agendas, nothing to do with advice
At the end of the day, the client gets what they pay for wrt advice. Interesting to note that 70% of respondents did not rate a mention!!! Selective diagnosis of statistics?