BlackRock finds financial advice shortfall

Financial advice is valued by the community but still the “preserve of a small minority”, with only 15 per cent using a financial planner, according to research from BlackRock.

BlackRock’s inaugural global investor Pulse Survey found that of those who do seek advice, two thirds feel positive about their financial future, whereas only half of Australians in general feel positive.

“As the survey shows, financial advice is still the preserve of a small minority, but those who use it value it highly,” BlackRock managing director Mark Oliver said.

“For instance, in Australia, 89 per cent of advised investors said that professional financial advice was good for money (compared to 84 per cent globally), while 93 per cent said that it helped them to select the right investment products for their needs (compared to 87 percent globally).

BlackRock spoke to 17,600 respondents, including 1,000 Australians, for the survey to “shed light on Australia’s retirement hopes, use of financial advice and approach to property”.

The survey found that income plays a role in how likely an Australian is to seek advice, with 25 per cent of those who earn in excess of $150,000 using a financial adviser, compared to 10 percent of those on lower incomes.

In addition, BlackRock found that those with lower incomes were more concerned about spending more than they earned, compared to those on higher incomes who were worried about changes to government pensions and housing costs.

“However, the survey also highlighted that the use of financial advice was highest among the 55-64 age bracket, or those approaching retirement,” Mr Oliver said.

“It is well known that the earlier we start planning for retirement, the better the outcome, so we would encourage young Australians as well as those approaching retirement to engage with a financial adviser.”

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