Speaking on a recent episode of the ifa Show, Helen Baker, the founder of the On Your Own Two Feet service, pointed to one key pandemic-related issue – exhaustion.
Ms Baker noted that while advisers face many adversaries, one most advisers are silent about is exhaustion.
While other Aussies are jetting off to exotic locations or taking lengthy mental health breaks, for advisers it’s not as simple as packing a suitcase and boarding a flight.
According to Ms Baker, there are many dependencies at play.
“Having been through what we’ve all been through, I would just like to go and travel for a year and have a break. And our industry, I think is the only industry that really doesn’t allow that to happen because we always, every quarter, have to do CPD points,” Ms Baker said.
“We have to do these regulatory assessments, certainly under our licence we do anyway. You can’t actually go and have one whole year off and have a proper mental health break.”
As a result, advisers are increasingly considering scaling back to part-time work.
“A lot of female advisers, and men to be fair, are wanting to work part-time going forward or dial down their hours,” Ms Baker said.
But she noted issues with this work model, pinpointing costs as a key barrier.
“The fixed costs are so high that you almost have to be in or out because part-time, it’s very difficult to service enough clients that still make it profitable for you,” Ms Baker explained.
“So I think there are still a lot of issues for people.
“I mean, I still feel the squeeze from every angle being able to be there for clients who I’d love to provide advice to, but I can’t and time off, and then having more study hanging over our heads. It just doesn’t seem to end.”
To hear more from Ms Baker tune in to our podcast later this week.
I sold my practice just before the pandemic in order to take a year out to travel with my family (stress, over the work, sick of compliance overkill) – this was a huge decision as I knew it would be difficult to come back in. I’ve been lucky that the buyer has retained me medium term to transition and build up their skills as a practice.
Fortunately I can as I meet all the education requirements and come back in at some point, unfortunately we are yet to take our break as Covid (until now) has kept us here… here’s hoping for the next few months – that is the plan!
How can you have a break if you are required to constantly provide fee consents disclosed in 25 different ways, to get paid.
Slow and deliberate hollowing out of the independent advice Industry. Oh no, sorry! Can’t say the word independent, they banned it for Financial Advisers only.
If there are no client appointments for the day, we work at home. I hate being in the office. Used to love but all I do now is renewals and trustee advice consent. I’ve had it. Yhe clients beg me not to retire so I stay on but the only way to endure is by taking time out. It won’t take much to push me over though.
I’m cramming the next few years then leaving the industry and its not even an education decision. Basically I no longer enjoy it. The aspects I love are an ever shrinking percentage of my week which is the “Actually talking to clients” bit – the rest is just mind numbing back office duties supporting the ever increasing industry requirements. I’ll be accepting a lesser income but i no longer care, actually thats not quite right…… I do care, I care a lot. But I just dont have the energy to care anymore…..
Not to mention the joy of hand holding clients through a minor stock market crash.
Agree. I was completely burnt out approx 18 mths ago. The politicians, consumer groups and regulators keep forgetting that we are humans not robots.
They don’t care, that is different from forgetting.
It sounds like “Has shoes and a 4 day week” has understood the future and and made the changes. There is a lesson there for a lot of advisers. But the article really just supports that the future of the industry is critical mass of businesses ( financial strength, staff, adoption of best technology etc etc) or the smarter small advisers who scale back to the correct number of clients. The days of money for nothing died a number of years ago and sadly some still have trouble adapting to that. The days of thinking a few CPD points gained by attending “sleep though” conferences kept you up to date are thankfully over.All the changes, tough as they are, are leading us to a far better industry.
The over regulation and multiple changes in legislation, plus the attack and persecution of advisers that Govt have overseen for the last decade has resulted in an environment of both mental and physical exhaustion, deep depression, anxiety and burn out.
Financial Advisers are on the whole very resilient personality types, but the last 10 years has broken many peoples spirit to the point of no return.
When you have a combination of extreme anxiety, depression, lack of self worth and confidence and low self esteem and a feeling that no matter how dedicated, careful and caring for your clients you are, you are considered a regulatory play thing for Govts and a constant target for persecution, the breaking point will eventually arise.
Mainly because they are being forced to waste a massive amount of time on chasing up fee renewals. HAYNE2 needs to go.
Have already scaled down to a 4-day week. Cut client numbers by 25% as well. I take alternative Mondays and fridays off so that I have a 4 day weekend every fortnight and a normal 2-day weekend in between. Have done similar with my staff so that the offices are still open 5-days a week but everyone is working 4 days. Didnt change salaries and productivity is still very high.
CPD points is a significant concern for many advisers. The inability for the planner and client to choose whether they have annual, biennial or every third year reviews, means that presently as a planner they cant take leave for a month let alone a full 12 months. Having experienced planners to even employ is an issue.
I am not sure any self employed or employee from really any industry could take a year off. In our industry who would service your clients that only know you while you are away?
spot on – how could anyone take a year off let alone 2 or 3 months whilst having fixed deadlines to hold annual review meetings, complete client advice, renew fixed term service agreements annually, submit platform advice fee consents annually, complete CPD and other licensee requirements, try & source new business opportunities