Generation Y investors believe financial planners are the most trustworthy source of advice but 60 per cent view the service as too expensive, according to research from RaboDirect.
RaboDirect’s 2013 National Savings and Debt Barometer found that instead, 36 per cent of Gen Y respondents relied on family and friends for financial advice while only 13 per cent use a financial adviser.
“Our findings reveal a clear opportunity for planners to engage with younger generations to teach them about the value of financial planning and show them the benefits that come from investing in their financial wellbeing,” RaboDirect national manager, key account services, Bede Cronin said.
“Gen Y needs to understand that financial advice doesn’t have to be complex and costly.
“It can be simple, affordable and deliver better financial outcomes than would be achieved in the absence of professional advice.”
In comparison, only 20 percent of Gen X and 11 per cent of Baby Boomers used their family and friends for their financial advice.
A third of Baby Boomers added that they had used accountants or tax agents for advice and 20 per cent had used a financial planner.
“While it is certainly encouraging to see that financial matters are being discussed with friends and family instead of being treated as a taboo topic, it is still important to enlist the help of a qualified professional to ensure that advice is sound and tailored to individual circumstances,” Mr Cronin said.
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