Only two in five Australians currently seek qualified financial advice according to a new survey conducted by the Financial Planning Association, in a concerning sign for the industry.
The survey also found that of the 61 per cent that don’t receive financial advice, only 16 per cent would consider seeking it within the next 12 months.
Mark Rantall, CEO of FPA stated that the research was concerning because it indicated that few Australians currently seek financial advice and, more worryingly, that they have no intention of seeking it in the future.
“The concern is that those who are most in need of advice, people in lower income households approaching retirement, do not receive it. This will place a great strain on the entire economy and the pension system,” said Mr Rantall.
The research indicated that one of the reasons for low figure was that Australians don’t understand the benefits that quality financial advice can make to their lives. The survey found that only 34 per cent of Australians say they know where to find a financial planner whom they can trust.
“Clearly not enough Australians understand what a financial planner can do for them, and what they should look for when seeking advice,” said Mr Rantall.
The FPA is planning on holding an FPA community forum in October to help address this issue. The forum is open to the general public and is aimed at demystifying financial advice, outlining exactly what financial planners do and educating Australians on how to find a qualified professional.
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