Financial advice will cost consumers half as much post-FOFA as Australians flock to scaled advice, according to Rice Warner research commissioned by the Industry Super Network (ISN).
According to the research, by 2026-27 twice as many consumers will be receiving advice at half the cost compared to a non-reform scenario.
ISN chief executive David Whiteley lauded the Future of Financial Reforms as a "win-win" for advisers and consumers.
The modeling estimated that by 2026 there will be 1.88 million pieces of advice provided per year, compared to 893,000 pieces under a no-reform scenario.
The reforms will also cut the price of financial advice to consumers in half, from $2,046 without the reforms to $1,163, and boost national savings by $144 billion, the report found.
The main driver of those changes will be a large increase in the take-up of scaled advice, Rice Warner stated.
Consumers would also benefit from a shift from commission-based charging to fee-for-service, which is cheaper for consumers over the long term, Rice Warner stated.
The ifa Excellence Awards are back in 2021 and nominations are now open! This prestigious accolade recognises exceptional professionals within the financial advice industry, shining a light on the outstanding achievements from the nation's best and brightest. If this sounds like you or someone you know, then nominate today for the ifa Excellence Awards 2021!
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