Aussies worry next generation will struggle, MLC says
New research shows one third of Australian parents doubt their children will enjoy financially comfortable lives, which presents a big opportunity for advisers, MLC says.
Speaking to ifa, MLC Advice Buderim principal adviser Ryan Oliver said this has become a "real concern" for his clients, who are worried about the rising expenses of day-to-day living and housing costs.
"I think this is the first time in recent history that the current generation feels that the next generation is going to be worse off than themselves, which is a little scary," he said.
"They are looking for what they can do. Should they be putting money aside for their kids for education costs? Should they be putting money aside to help their kids buy into property in the future?"
Mr Oliver said an opportunity exists for advisers to get clients to start talking about their children's future and start planning sooner, rather than later. The challenge for younger clients will be taking action, he said.
"What I see in my younger clients is that awareness is out there. They all know about super, they know about income protection and life insurance. Have they done anything about it? That's another question," Mr Oliver said.
"We need to convert the awareness into an action. We just need to do that by opening up the conversation."
The MLC research also found that out of 2,000 respondents, 43 per cent of believe they will have to rely on the government during retirement. Further, one in five Aussies said they will rely on family inheritance for financial security.
Those who said they use a financial adviser were also "significantly less likely" to say they would rely on the government, the research showed.
"This stage of the research also unveiled those with financial professionals – like a financial adviser – are consistently more likely to be confident about financial matters, spending and financial planning for the future," said NAB Wealth Advice's executive general manager, Greg Miller.
"These insights should drive advisers to stay ahead of the curve, embrace the opportunity and skill-up on what may have previously been seen as non-traditional advice services, such as personal and business succession planning, which can enable customers to pass on their wealth according to their wishes."
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