Aussies to turn to super funds for advice
While more Australians intend to seek financial advice from a planner in the next two years, an estimated 400,000 aim to get advice from their super fund, new research has found.
According to a study conducted by Investment Trends – based on a survey of 10,367 Australians in late 2015 – an estimated 2.5 million adults intend to seek advice from a financial adviser in the next two years, an increase of 32 per cent from 1.9 million in 2014.
"While not all will act on their intention, the relative change from last year indicates more are seeking advice right now," said Investment Trends senior analyst King Loong Choi.
However, Investment Trends' modelling found 400,000 people will look to their superannuation fund to get sound, affordable advice rather than turn to a financial adviser.
Investment Trends highlighted that super funds are well placed to use their scale and technology to provide their members with access to lower-cost advice models which, in turn, can help to lift member satisfaction and improve retention levels.
"By raising members' awareness of these advice offerings and helping them overcome their barriers to seeking financial advice, super funds can help members fulfil their advice needs," Mr Choi said.
The survey also found that Australians are willing to pay more for financial advice than they were a year ago.
What they are willing to pay, however, still falls short of what it costs to deliver advice.
In fact, Investment Trends said, financial advisers typically estimate the cost of delivering advice to be four times the amount Australians are willing to pay.
"Many understand that receiving financial advice can help improve their financial wellbeing, and our research shows that those who use a planner typically feel financially better off," Mr Choi said.
"However, the way advice is currently delivered may not be aligned with how many Australians would prefer this to be delivered.
"This creates an opportunity for advice providers to innovate and develop new advice models that reduce the cost of delivering advice and align fees closer to clients' expectations while retaining margins," he said.
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